Digital decline at UMG

SO WHAT’S WITH THE DIGI-DECLINE? A simple explanation offered by Digital Music News is that paid downloads are simply past their prime. In the U.S., SoundScan data suggest that the download market has reached a plateau and is starting to edge toward decline, after years of strong percentage growth. But Vivendi actually pointed to strong download growth at UMG, “particularly outside of North America,” and largely blamed softening ringtones for the broader digital decline. DMN also notes that Capron’s comment is reassuring, suggesting that Vivendi is ready to tough this one out, as UMG and the rest of the industry continue in their attempt to find new ways to restore profitability. (5/13a)