Warner Music threatened with less than $5 stock

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  It is no secret that the majority of executives at Warner Music Group specialize in numbers, not foresight; and as the numbers continue their downward spiral, old-school executives still refuse to surrender control to a younger and more insightful generation of digital savvy managers. Nearly everyone (outside of WMG) is in agreement: Warner has the potential to regain its former financial glory by following the lead of media giants such as EMI and Universal.

  Seven current issues plaguing WMG:

  1. *The continued production of soulless Pop-Music that will not produce residual sales after initial charting.
  2. *Refusal to accept the advantages of inner-industry digital partnerships which ultimately elevate exposure, sales and royalty returns.
  3. *Keeping the doors shut on progressive/experimental divisions that focus on new styles of business practices.
  4. *Overbearing and glorified production costs from executive/buddy-buddy producers (this is a larger problem than most people realize)
  5. *The near non-existence of internal licensing (WMG has the potential of supplying (exclusively) media to its sister divisions, thus having a massive effect on Warner Brothers as a whole)
  6. *A hefty reliance on publishing royalties to pay the bills
  7. *WMG continues to view artists as product rather than business partners.

  This entry was posted on Monday, December 17th, 2007 at 6:56 pm and is filed under Special Features. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.