Warner Set To Shift On Digital Front

NEW YORK (CelebrityAccess MediaWire) — After announcing last month that losses for the quarter ending June 30th would be higher than expected, Warner's Edgar Bronfman has made public statements indicating that the firm may be planning to narrow its focus in digital music distribution and expand it's revenue potential in other aspects of the music industry, the Financial Times has reported.

With the ink still drying a $110 million dollar expansion in Front Line Management last month, this development seems like it was anything but unexpected. And as revenue streams continue to shift towards the live touring and digital markets it would seem almost a requirement that Warner find a way to capitalize on these emerging markets.

They aren't going full steam ahead though. Bronfman's statements suggest a cautious strategy. Warner would need to be "more careful" in who it entered into partnerships with, the FT reported. Bronfman elaborated, noting that he felt that the wide range of music websites weakened the brand and that "a sense that music is ubiquitous, to a degree that's probably not helpful to us". Still, digital revenues had grown by 29% in Q3 for Warner, accounting for 15 percent of their total sales, the highest in the business at this point. These sales figures however do not offset the concurrent decline in CD sales.

It remains to be seen if Bronfman's attempt to "redefine [its] role in the music value chain," itself will bear fruit. The music giant faces considerable challenges that they will need to demonstrate considerable adaptability to overcome and the attempts to diversify operations may hinder more than help but Warner also seems to be one of the most proactive of the major labels in responding to the dramatically changing business landscape wrought by the digital era. – CelebrityAccess Staff Writers

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