The Return of the Mamon
Whoever said, the music business wasn't making any money?
Two news items from last week that should set your hearts bouncing and give
fresh hope to a thesis we have supported for a long time: There is still
money to be made from the music business!
First off, there is word from the huge German Entertainment Specialist DEAG that their Classical Music Segment will become the most profitabel and most important part of the organisation. With profit margins of up to 15% and sold out concerts with ticket prices going as high as 85 Euros for an average seat, DEAG Classics wants to acchieve a turnover of 10 Million Euros for this year. Not an unreasonable plan, considering that stars such as Anna Netrebko, Renee Fleming, Montserrat Caballe, Jose Cura and other prominent figures are on the company's roster. Having said that, numbers for 2004 were nothing special, even though noone was expecting them to be.
Secondly, last weeks edition of The Economist spread the sensational news that Warner Music, which was bought out by Privat Investors, has managed a remarkable turnaround and more than doubled profits from 2003 to 2004. Just to put this in perspective however, it has to be said that this has happened mainly by cutting costs and that the planned move to Wall Street is everything but a safe bet. Still, a seemingly knocked-down patient is recovering.
Source DEAG: AktienCheck
Homepage: DEAG Deutsche Entertainment AG
Source Warner Music: The Economist
Homepage: Warner Music
First off, there is word from the huge German Entertainment Specialist DEAG that their Classical Music Segment will become the most profitabel and most important part of the organisation. With profit margins of up to 15% and sold out concerts with ticket prices going as high as 85 Euros for an average seat, DEAG Classics wants to acchieve a turnover of 10 Million Euros for this year. Not an unreasonable plan, considering that stars such as Anna Netrebko, Renee Fleming, Montserrat Caballe, Jose Cura and other prominent figures are on the company's roster. Having said that, numbers for 2004 were nothing special, even though noone was expecting them to be.
Secondly, last weeks edition of The Economist spread the sensational news that Warner Music, which was bought out by Privat Investors, has managed a remarkable turnaround and more than doubled profits from 2003 to 2004. Just to put this in perspective however, it has to be said that this has happened mainly by cutting costs and that the planned move to Wall Street is everything but a safe bet. Still, a seemingly knocked-down patient is recovering.
Source DEAG: AktienCheck
Homepage: DEAG Deutsche Entertainment AG
Source Warner Music: The Economist
Homepage: Warner Music
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