EMI alleges a digital future

From an EMI press release: "Digital sales rose over 300% to $90.9 million. Said a Barclays analyst, 'Digital should support group sales and margins over the next few years, although at this stage it is difficult to quantify by how much and whether the growth will be able to totally offset the decline in physical sales.' EMI had this to say: 'Our strategy remains to deliver our music content to consumers in any form, at any time and in any place.'"

They could start by actively developing their entire catalog to digital but it would shock me to know that they are actually doing this.

You're going to see lots and lots of executives at the labels saying things like this over the next few years, but with ledgers what they are at the biggies, there's not going to be much of a committment to digitization. After all, there's not really a rush: the major labels can rely on third parties like Apple to digitize and plunder catalogs to servers. Meanwhile, they can continue to vaguely support the compact disc industry with third-party toys like DualDisc with very low investment. They can have their cake, decorate it, then eat it too.

In other words, there's really no pressing need for the major labels to fundamentally change their industry in the near future. As large corporations, they are risk averse and enslaved to their stockholders and the major investment houses. Shareholders want growth and in that, prefer rapid growth in the short term. Many artists and commentators reduce this element of capitalism to something akin to evil or malice towards artistry; rather, it's more a comment on how musicians are willing to whore themselves to the process. In fact, it's the artists themselves that drive the equation--connecting art to consumers requires transaction, and as long as the creators align themselves with the major labels revolution will be slow coming.