Another prediction for a gloomy 2008 for the music business, this time from a man with a ground-level view: Music industry vet Jim Caparro tells us he thinks U.S. music sales will decline 15 to 20 per cent this year.
Why would Jim know? Because up until last fall, he ran Entertainment Distribution Company Inc., (EDCI) which, um, produced and distributed discs for much of the music business, including Universal Music Group, the largest player in the business. Jim blames the usual culprits we’ve discussed before: A general lack of interest in compact discs, and a cutback in the amount of floorspace big retailers are devoting to music.
The good news for Jim: It’s not his problem anymore. He stopped running EDCI in November, and is now a non-executive chairman at a subsidiary of the company. EDCI itself won’t be its investors’ problem for much longer, either: The company is on the block. It’s got an enterprise value of about $21 million. Any takers
See Also: Music Decline To Accelerate In 2008