Comments on: Universal Music Group nearing its digital tipping point http://paidcontent.org/2012/11/13/universal-music-group-nearing-its-digital-tipping-point/ The economics of digital content Sat, 18 May 2013 13:43:01 +0000 hourly 1 http://wordpress.com/ By: Maurice DeNoble http://paidcontent.org/2012/11/13/universal-music-group-nearing-its-digital-tipping-point/#comment-172107 Wed, 14 Nov 2012 20:21:17 +0000 http://paidcontent.org/?p=220590#comment-172107 A truly ignorant and uniformed report. At the current growth rate of digital assets owned by Universal, including downloading and licensing, they won’t reach previous 2000-2005 profit levels until 2021, barring unforeseen changes in the marketplace. So that means the hundreds of jobs lost won’t be replaced, artists will no longer receive reasonable advances, less artists will be signed and promoted. Wow, let’s celebrate less economic growth.

]]> By: Chris Williams http://paidcontent.org/2012/11/13/universal-music-group-nearing-its-digital-tipping-point/#comment-171923 Wed, 14 Nov 2012 16:02:04 +0000 http://paidcontent.org/?p=220590#comment-171923 It’s always difficult to analyze the health of a recorded music label because so much is based on the success of a specific release or releases, but for us outsiders it’s one of the major pieces that we have to use. You can’t really utilize the overall costs given the ease of manipulation and because there are so many one time charges.

]]> By: Greg Portell http://paidcontent.org/2012/11/13/universal-music-group-nearing-its-digital-tipping-point/#comment-171796 Wed, 14 Nov 2012 13:31:24 +0000 http://paidcontent.org/?p=220590#comment-171796 Good point… The revenue story is bound to improve as the comps get reset. But, there is still a need to a fundamentally leaner cost base.

]]> By: M. Belezik http://paidcontent.org/2012/11/13/universal-music-group-nearing-its-digital-tipping-point/#comment-171626 Wed, 14 Nov 2012 08:17:07 +0000 http://paidcontent.org/?p=220590#comment-171626 “regardless of format, recorded music revenue continues to shrink because digital downloads are cheaper than discs”

How about costs? You wouldn’t think the revenue goes down like 30%, but costs like 70%? Isn’t making business about profit, not revenue?

]]> By: spotmagicsolis http://paidcontent.org/2012/11/13/universal-music-group-nearing-its-digital-tipping-point/#comment-171609 Wed, 14 Nov 2012 07:09:44 +0000 http://paidcontent.org/?p=220590#comment-171609 Yep. That was bound to happen. One division slips into black, other divisions hemorrhage red.

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