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 Send to email | Sony: More Music, Please in General |  By Silicon
el 02-Jun-2008 |
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 Aphorism among optimistic music industry types for the past few years: The music business isn't in trouble -- the music labels are in trouble. The logic: People are spending plenty on music -- via iPods, concert tickets, ring tones etc. They're just not very interested in spending much on actual music recordings.
Here's Bertelsmann CEO Hartmut Ostrowski's version, via the NYT: 'The good thing is, more people are listening to music than ever before,' he said. 'The bad thing is, it is not easy to monetize it.'
This explains why Hartmut wants to get out of Sony BMG, the 50/50 JV he owns along with Howard Stringer's company. So what explains Sony's interest in buying Bertelsmann's stake? The JV's sales dropped another 4% in the last 12 months ending in March of this year, and we assume that number would be much worse if you accounted for the weak dollar. And it has yet another big restructuring in the works.
But if Howard Stringer can get his German partners to sell at a steep discount, we don't think it's a terrible idea. Our version of the aphorism: Investing in new music is a sucker's bet right now. But owning a big catalog of stuff people already know and like -- like, say, Elvis and Johnny Cash and AC/DC -- can be a valuable asset, especially if you manage costs well.
See Also: Sony BMG: Medicore Q4; Unpleasant Forecast
Report: Sony BMG To Double Restructuring Charges This Year
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| Sony: More Music, Please | | Aphorism among optimistic music industry types for the past few years: The music business isn't in trouble -- the music labels are in trouble. The logic: People are spending plenty o [..] Read complete article | | Published 02-Jun-2008 by Silicon in General
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| Sony: More Music, Please | | Aphorism among optimistic music industry types for the past few years: The music business isn't in trouble -- the music labels are in trouble. The logic: People are spending plenty o [..] Read complete article | | Published 02-Jun-2008 by Silicon in General
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| Sony Ericsson to launch music store in weeks |  These days, it seems having your own music store or app store is all the rage. Sony Ericsson wants in on the party and is going to release its own music store in just a few weeks. The only problem is SE’s new Play Now Plus (the music store, duh) is only going to be [...] [..] Read complete article | | Published 24-Sep-2008 by Marc Flores in
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| Amazon on board with Myspace Music? |  Seems like an unlikely pairing, but rumors are now circulating that Amazon is now bidding to provide online retail services in conjunction with Myspace Music. Myspace announced their music service earlier this year, with plans to provide music from Sony BMG, Universal, and Warner. They plan to offer both ad-supported free streaming as well as [...]
[..] Read complete article | | Published 25-Jul-2008 by Joshua Karp in Newsamazon mp3myspace music
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