Then again, perhaps Sony think the music industry is now in healthy enough shape to justify those investments. Certainly two of their major label competitors seem to be doing OK - with both Universal and EMI reporting healthy first quarter figures, and both of them noting the importance of growing digital revenues in relation to current success.
Following a successful 2005, Paris based Vivendi Universal continued its financial recovery in the first quarter of this year, with the Universal Music Group again a key player in delivering that financial joy. UMG saw sales rise by 8.4% in quarter one, up to $1.39 billion, with digital sales and booming publishing revenues cited as reasons for their success.
Meanwhile, London based EMI were also upbeat this week when they issued a trading update a month ahead of formally releasing its quarter one figures. They say that sales growth in the first quarter was close to 4%, with pre-tax profits expected to be up by almost 12%. Again, growing digital sales, which now account for 5.5% of the group's recorded music revenues, were one of the reasons cited for the recent successes.