Both EMI and Warner have reported further declines in sales this quarter but strong increases in digital revenues. EMIís digital revenues grew by 26 percent and Warnerís by 27 percent. The fact that both companies saw declining overall revenues highlights two key issues:
ē Digital is not yet growing strongly enough to offset physical declines
ē Digital may actually be contributing to overall decline due to the formatís propensity towards single purchasing.
Yet more fodder for my perennial argument (yes Iíll keep ramming it down your throats until the music industry listens!) that the labels need to aggressively drive album and multiple track purchases online.