Digital Sales Finally Offsetting CD Losses At Universal Music Group
November 14, 2012 at 3:55 AM (PT)
There's good news for the world's largest record company, UNIVERSAL MUSIC GROUP, with reports that the company will begin posting profits again. UMG, like most labels, took a major hit in the post NAPSTER world when CD sales began to fall. Now, it's digital that's leading the way back to black.
UMG reported YESTERDAY (11/13) that revenue for the last nine months had risen 2.1%. CD sales were down again by 14.2% to "eu1.02 billion ($1.29 billion) while digital grew another 8.6% to eu916 million ($1.16 billion) -- poised to overtake physical sales soon," reports PAIDCONTENT.ORG.
Other labels are experiencing the same growth pattern, with WARNER MUSIC GROUP also reporting digital music sales growing and CD sales shrinking.
In reporting its financials, UMG noted that it is now "integrating teams from EMI RECORDED MUSIC, which it has acquired, and has attracted 'robust interest' from potential bidders for several EMI imprints, which it has been forced to sell by the EUROPEAN COMMISSION to satisfy antitrust concerns around the deal," notes PAIDCONTENT.