In Monday’s (5/28) New York Times, Jeff Leeds reports:
“Despite costly efforts to build buzz around new talent and thwart piracy, CD sales have plunged more than 20 percent this year, far outweighing any gains made by digital sales at iTunes and similar services ... It’s been four years since the last big shuffle in ownership of the major record labels. But now, with the sales plunge dimming hopes for a recovery any time soon, there is a new game of corporate musical chairs afoot that could shake up the industry hierarchy. Under the deal that awaits shareholder approval, London-based EMI agreed last week to be purchased for more than $4.7 billion by a private equity investor, Terra Firma Capital Partners, whose diverse holdings include a European waste-conversion business.” Leeds adds: “More than half of all music acquired by fans last year came from unpaid sources including Internet file sharing and CD burning, according to the market research company NPD Group. The ‘social’ ripping and burning of CDs among friends -- which takes place offline and almost entirely out of reach of industry policing efforts -- accounted for 37 percent of all music consumption, more than file-sharing.”
The buyers' ownership of a waste-conversion business will be especially helpful in running a record label.