EMIís recent announcement of a drop in first half profits comes against the back drop of the music industry nearing the end of its downward trend and EMI will be well placed to ride the wave back upwards. EMI has always been ahead of the curve in terms of adopting new digital media EMI and has laid solid foundations for maximising revenues in the digital era. The importance of its music publishing division cannot be underestimated as synchronisation revenues become an ever important part of the equation. But that is not to do a disservice to recorded music sales. The CD remains absolutely key to music consumption and with prices having steadily fallen for years it is more relevant as a consumer product than it has been for years. Of course labels still have to work out how to convert todayís digital youth into a music buying demographic, and to halt the impact of piracy and competition from interactive media spending. But the industry decline is close to bottoming out and recorded music will begin its journey of identifying a new role for itself in the 21st century. The big question for the music industry though is just how major a role will that be?