Wednesday, November 14, 2007

Shrinking floorspace sends Warners through the floor

Troubled times for stockholders of Warner Music Group: Market expert Rich Greenfield has rubbished their shares for the second time in a week. He now reckons they're worth five dollars a piece; the markets are working hard to make his prediction come true.

His main reason for the gloom - besides, obviously, looking at the artists they're working with - is rumours that US chains are looking to cut back the shelf room they give to CDs, possibly by as much as 30%, in order to use the space for something a little more profitable. Like customer washrooms or something.