SonyBMG swung to a big $49 million (£24 million) loss for the three months to June’s end, thanks to “continued decline in the physical music market worldwide not being fully offset by growth in digital product sales“. For an indication of how serious the problem is – in that quarter a year ago, the JV turned a $21 million (£10.5 million) profit. Since then, sales have fallen six percent to $820 million. But it’s not just down to the digital question – $46 million (£23 million) higher restructuring costs dragged, too.
The figures emerged in today’s earnings for Sony (NYSE: SNE), which said it made a 2.5 billion yen (£11.6 million) loss from the 50/50 JV, swinging from positive sales of 3.8 billion yen (£17.7 million) a year ago. Four years after the merger, after Europe annulled the tie-up, the partnership was again cleared recently – just in time for Bertlesmann to look at selling its stake, and for indie label umbrella Impala to reprise its original opposition with another appeal.
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