Digital Growth for EMI and Universal

Two European based record labels (Universal Music and EMI) have both just reported that digital sales accounted for significant shares of total revenues (10% and 5.5% respectively). Digital of course includes mobile content, but even with that consideration, it is clear that on an overall market level, digital music is beginning to follow a trend we have been talking about for a while at Jupiter:

Though we’re not financial analysts at Jupiter and don’t do individual company financial analysis, on a market wide level we see that though digital music is a niche market it still has enough scale to potentially be the difference between making a loss and profitability for record labels in these days of stagnant or declining CD sales.