Blog Post

Why Warner Doesn’t Need EMI

Hint: its to do with digital. Paul Sloan says in B2.0 that despite some talk about Warner-EMI possible merger being in doubt after SonySBM deal came under scrutiny from EU, Warner has been doing just fine without EMI, with digital sales that far outpace its rival. And it very well could make more progress without a merger in the coming years, since it could continue its digital push unburdened by the need to meld different corporate cultures and wring cost cuts from a combined company.
On the digital music, onlie and mobile is a big part of the company now, as the story illustrates, and besies sales through these channels, Warner is also negotiating with YouTube to figure out how to license its catalog to the site.
EMI has also stressed the importance of embracing digital, but its efforts are far behind Warner’s. It’s also recently seen a number of high-level defections from its digital staff, including Ted Cohen, a senior VP.