Warner Music has decided against licensing new music to online streaming sites like Last.FM, Pandora and others. Citing his belief that these sites, which deliver his artists’ music to untold potential new fans, was not “positive” for the music industry, chief executive Edgar Bronfman Jr. told the BBC that Warner would not issue licenses to new sites.
“Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed,” Bronfman told the BBC. “The ‘get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy’, is not the kind of approach to business that we will be supporting in the future.”
Instead, Bronfman said Warner will focus on launching their own fee-based service to compete with streaming sites and online retailers like iTunes.
“The number of potential subscribers dwarfs the number of people who are actually purchasing music on iTunes,” Bronfman said. He sees the potential for subscriptions in the “hundreds of millions if not billions of people, most of whom are not today either buyers or certainly heavy buyers of music.”
Yeah, right. Good luck with that.
Continue reading Warner Bails on Streaming Sites
Doh! Guess what happens when a major label honcho sells a quarter of his stake in his company? Well, the stock tumbles more than 10%, of course.
[Warner Music Group‘s top U.S. executive for recorded music, Lyor Cohen] sold 800,000 shares on Monday at $8.45 each for around $6.8 million, according to the filing with the U.S. Securities and Exchange Commission on Tuesday. He retains ownership of another 2.6 million shares.
Warner shares fell more than 77 cents to $7.27 on the New York Stock Exchange.
Surely, Cohen must see the writing on the wall that the major label system is doomed, right? Not so fast, commie! It turns out that $6.8 million is the exact price Cohen paid back in June for a new crib:
Warner Music Group chairman Lyor Cohen is spending $6.8 million for a teardown in the Hamptons. Sources say Cohen has just closed on the property in North Haven after a bidding war erupted for the bayfront home, which was listed at $5.5 million. […]
While the four-bedroom Contemporary is nothing to crow about, the stunning 2.5-acre property has 170 feet of waterfront. Meanwhile, Cohen has taken his Bridgehampton estate with a $9.5 million price tag off the market in anticipation of his lengthy construction project.
Things are tough all over, aren’t they? Dudes are having to sell off their own companies in order to make their house payments! I bet you feel terrible now for snatching that Death Cab torrent, don’t you?
MP3: Death Cab for Cutie – “Cath…”
Via the rope.
Wonder why major labels are losing money? Look at Warner Music Group’s officers’ salaries: Edgar Bronfman makes $6,250,000 while Lyor Cohen makes $8,340,000. That’s almost 15 million dollars per year to pay two guys who want us to believe that sharing music hurts artists. Fuck you!