It’s beginning to appear that some of the major labels’ strategy for dealing with the changing structure of the music business — in which overall money is up, but has shifted away from the record labels’ bank accounts — is to simply bleed the old market dry. How else to explain that as Warner Music continued to shrink and fail to respond to market changes in any reasonable manner, its two top executives took home $14 million last year. I guess you could argue that WMG’s stock was up slightly (from deathly ill to just really really sickly — but way, way down from just a couple years ago) over the year, but the company lost a tremendous amount of money each quarter this year (last quarter still hasn’t been reported), and Warner Music has shown little outward effort to suggest it’s adapted or has any idea how to adapt to the changing market.
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