Friday, May 08, 2009

Warners cool on digital portfolio

Having invested enthusiastically but not wisely in Imeem and Lala, Warners have decided to change their digital strategy again and are writing off USD33million worth of investment in the two companies.

Which doesn't look great, either for Warners or for Imeem. The irony is that part of the reason why digital companies like Imeem are struggling to break in to profit is the ridiculously huge sums that the traditional record labels are demanding for content - in effect, Warners has helped torpedo its own multi-million investment.

Warners has yet to announce what its plan T will be, having ditched A to S.