Labelheimer’s Disease (Forgetting How to Make a Profit From Music)

Perhaps you saw where Atlantic Records, an appendage of Warner Music Group, was bragging just before Thanksgiving that more than half of its music sales is now from digital products such as legal downloads and ring tones for cell phones.

The same Warner Music group then turned around and posted lower revenue for its fiscal fourth quarter -- to quote The Wall Street Journal -- "as consumers continued to shift toward digital music at the expense of compact-disc sales".

Wait a minute.

Digital sales are up -- profit is down.

Are you drinking their Kool-Aid yet? I'm not.

Atlantic is counting all kinds of&hellip