EMI has announced that it expects EMI Music full year revenues to decline by 15 percent. EMI has been working hard to realign itself with the harsh realities of being a record label in the 21st century. This has included ambitious digital initiatives (such as dropping DRM) and efficiency measures that together make EMI better placed to weather the storm. However, the fundamentals that are impacting EMI are also impacting all other record labels and they remain in play e.g. competition from other media, physical and online piracy (see chart one of this report for more detail).
The bottom line is that the music industry has had its high water mark. Digital (including mobile revenues) will eventually help slow and halt the decline (see this chart) but it wonít restore the revenues of the turn of the century.
That doesnít mean that there isnít a future for the music industry. Of course there is. Thereís a strong future, itís just not as strong as the heyday, and that future requires cloth to be cut accordingly. Which is exactly what EMI is doing now.