Feeds

EMI looks to digital as download sales quadruple

But look to lawsuit stick rather than iTunes carrot for the cause

  • alert
  • submit to reddit

Security for virtualized datacentres

The world's third largest music label, EMI, saw its revenues from digital music increase by more than 300 per cent in the six months to 30 September, the company said today.

Digital's contribution to EMI Music - one half of the group; the other is EMI Music Publishing - was up almost 500 per cent in the first half of the Group's fiscal year. During that time, Apple expanded its iTunes Music Store from the US to the UK, Germany and France, and Napster opened a UK store.

EMI's digital sales totalled £12.2m. That's just over two per cent of the music and movie group's total turnover, £851m, down 11.4 per cent on the year-ago half.

EMI made a pre-tax half-yearly profit of £36.9m, down from the £39.8m it announced this time last year.

The company noted that with a release schedule heavily biased toward the second-half of the year - and more so this year than has been the case in the past - the weaker H1 was not entirely unexpected. Early numbers for October and November showed a significant improvement over last year's monthly figures, it said.

EMI calculates that the global recorded music market fell 1.3 per cent during its first half, down from a ten per cent decline a year ago. The US market showed strength, Japan appeared to be stabilising, the UK was flat but the rest of Europe still "experiencing significant declines during the period".

Don't necessarily look to the rise of digital music as driver of resurgence, though the growth in digital revenues is impressive. EMI bosses attributed the turnaround more to the aggressive legal action brought by the likes of the Recording Industry Ass. of America (RIAA) against file-sharers than to the burgeoning digital market per se.

The lawsuits were having an "educational and deterrent" effect on music consumers, the company said.

"It's certainly had a significant impact on Germany," said EMI Music Chairman, Alain Levy. "There's no doubt that in Christian music, for example, when the lawsuits started, the legal downloads started to go up immediately."

"The legitimate digital music market continues to expand rapidly and we remain confident that digital represents a key driver for future industry growth," said EMI Chairman Eric Nicolli. ®

Related stories

Sony talks to Grokster
First deadline passes for Supreme Court Grokster case
UK group preps public digital music 'ATMs'
Grokster touts 'legal, licensed' p2p music share system
France rules Apple's DRM denial not anti-competition
P2Pers ask Supreme Court to reject RIAA ban request
Tesco opens digital music store
Music biz in unauthorised downloads shock
Spitzer the Blitzer goes after music label payola
Robbie Williams: crooning soon on a phone near you
How the music biz can live forever, get even richer, and be loved
Woolworths to take on Apple iTunes store

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.