Overall the global market share of EMI rose from 12

"We always think that the acquisition of Warner Music by EMI would be very attractive to the shareholders of both groups, but we will do the operation if it creates value for our shareholders and improve our results," said yesterday the British EMI, third "major" world of the disc. Early may, after having proposed 28.5 $ by title to the shareholders of Warner Music, valuing the major American 4.2 billion the British got away. It remains more than ever interested, but does not want to pay any price in a context very changing to the music industry. Music in digital format sales explode for two years, but the Outlook for margins, excellent for the time being, remain more uncertain long-term.

The digital explosion

Yesterday, the Warner Music action appeared to 27,14 dollars on Wall Street, where it is listed for one year after the takeover of the group by a consortium of investors led by Edgar Bronfman. EMI made this new update yesterday, on the occasion of the publication of the results of its fiscal year ended March 31.

Worn by the success of Coldplay or Gorillaz, the Group recorded a growth of 3.9 of its turnover to 2.08 billion and an increase of 19.5 of the result before taxes, 118.1 million pounds. "These results show that EMI is doing well, and I think that we have created a strong platform for the possible acquisition of Warner Music, said Eric Nicoli, EMI President, during a conference call." The industrial logic is irresistible and synergies would create additional value. "Analysts believe that EMI will revert to Warner Music with an improved offer. What has not formally excluded Eric Nicoli, who said yesterday that there was still money for the "great ideas".

After the merger between Sony Music and BMG, who created the second multinational of the disk, the hypothesis of a marriage between EMI and Warner Music is regularly on the front of the stage.

Concern of the independent

In the past, the two groups have tried twice to marry. Such amalgamation would however allow three majors Universal Music, Sony BMG and EMI Warner control about 75 of the world market of the disc, which does not lack of worry any sphere of independent labels, already bad history with the Sony BMG merger. After the green light from the European Commission, the association Impala, which brings together European independent producers, has seized the Court of justice of Luxembourg, which should give its decision before the summer.

Merge or not with Warner Music, EMI is derived very well in the new environment of recorded music, despite some difficulties in Asia and South-East to the Japan. Under constant restructuring to maintain a cost preserving structure margins, EMI hopes to save 30 million pounds per year from 2007-2008, by reorganizing in the Japan where its market share in recorded music is in free fall, losing almost two points (from 9.5 to 7.7) between the years 2005 and 2006. Overall, the global market share of EMI rose from 12.9 in 2004-2005 to 13.1 in 2005-2006 with the gains in Europe and North America. Between these two exercises, music in digital format (recorded music and Edition) sales increased from 46.9 in 112,1 million sterling pounds. For EMI, 25 of the music market will be in digital form in 2010.