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May 08, 2009

Warner Music's Bronfman: 'Myspace Music Needs to Change'...'LaLa and Imeem Have Not Met Expectations'...

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Digital Music News

The heavily-hyped MySpace Music is threatening to become a revenue dog for major labels – and Warner Music Group is now saying it out loud. “MySpace Music has been slow to create monetization tools and impact in a revenue-generating way… and that needs to change, quite frankly,” Warner chief Edgar Bronfman, Jr. stated in a Thursday investor call. “It needs to change for MySpace and it needs to change for the music industry and it certainly needs to change for Warner Music.”

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Warner Music Group (NYSE: WMG) won’t be buying stakes in more web music services any time soon, after it wrote off $33 million on Thursday against its investments in Lala and Imeem. CEO Edgar Bronfman Jr. told analysts on the earning’s call: “We do not intend to make more digital venture capital investments. The intention was to (invest in) young companies pursuing innovative business models. Some of these digital venture capital investments have not met expectations. It makes sense to recognize the very different valuations these companies are receiving in the current economic environment.”


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#1 M a r c says:

Bronfman is killing our cultural with his corporatization of music.

#2 ernie says:

sounds like they invested money into ventures that they expected to see an immediate return.
if people would just get better taste and NOT BUY music from major labels it would show the label's that we as consumers no longer need them.
personally i no longer buy records on major labels because i feel that anyone who tries to sue people for exaggerated amounts of fictional money for downloading a few songs doesn't deserve my business.

#3 wheatus says:

Bronfman says THEY need to change.....

AAAAAHHAHAHAHAHAHAHAHAHAHAH!!!!!!

brendan b brown
wheatus.com


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