Warner Music Group's shares fell as much as 7.3 percent in their market debut on Wednesday, after the initial public offering priced well below the expected range, on concerns about the impact that digital music would have on the future of record companies.
While digital music has grown exponentially over the last several years, analysts noted that there is no proven time horizon for established record companies to profit from that growth, when physical CD sales still account for as much as 98 percent of music sales, by some estimates.
"When can you be confident that the growth in the digital side of the business will offset the declines in the physical business? No one has an answer to that question. And investors are responding accordingly," said Fulcrum Global Partners analyst Richard Greenfield.
"on concerns about the impact that digital music.."
How about shares fell as investors are cautious about a business that encourages its partner the RIAA to sue its primary customers and consumers?
How about shares fell as investors see a business willing to decrease value of its products by abusing DRM schemes?
How about shares fell as investors are leery about a business that seems unable to utilize current digital distribution methods while maintaining quality and portability of it products?
How about it's just EVELUTION?
Add the fact that music is also receiving a smaller market share in comparison to DVD's and Video games and you have an industry that is going to end up falling in a tar pit if it doesn't evolve more quickly.
I can't believe people bought that IPO....
That's like investing in typewriter companies in the 80s lol...
WMG is their ticker symbol in case anyone cares... I'm looking for a nice ski slope to cruise, and I think their 6 month graph will look just like one...
Sell short on this mofo and I think you'll make a fortune - I suppose I should put my $$ where my mouth is... :)
Nice to see you posting, fTard.
We need to keep an eye on this.
Maybe when the stock falls low enough, Zeropaid could buy a controlling share in the company.
I don't know exactly what we could do with it, but it can't be much worse than what they're doing to themselves.
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