Sony BMG Restructuring Plan To Focus On Epic and Columbia
Sony BMG is planning a top to bottom restructuring of their Epic and Columbia divisions in the near future. Layoffs will only be one aspect of the plan, with a merger of the two divisions a possibility. This is not a shock to anyone who follows the record industy with EMI taking several facets of its business off life-support recently to stop the hemorrhaging.
Sales of CDs have tanked considerably this year for the recording industry, dropping nearly 20 percent since the new year. The multi-year slide is being felt most severely by EMI, which was recently forced to issue its second profit warning in as many months. To make matters worse, labels are now having difficulty convincing investors that digital assets will rescue decreased CD purchasing. Just recently, investors pushed shares of Warner Music Group downward following a massive profit dip in the fourth quarter, despite strong gains in the digital sector.