Fortunes change
Warner Music cited the need to shift resources to digital ventures as it announced the downsizing of 400 jobs, reports The Financial Times.
Warner cut the jobs after a disappointing first quarter, which the company says saw a light new release schedule versus 2006. Digital sales continue to grow but do not yet offset declining CD sales. Revenues were $648 million in the first quarter, down four percent. Digital sales were up 23 percent, to $111 million, making up 14 percent of overall revenue.
Warner says the percentage of music downloads to phone sales is 60 to 40. The next generation of multimedia cellphones could lead to a reversal in those percentages, according to the company.
