December 21, 2005
WEA Corp. has just announced a strategic reorganization, partly in response to the growth of digital formats. The company, which is responsible for the sales and distribution of Warner Music Group product, will now revolve around four key divisions. Those divisions are Operations and Administration; Sales Analysis, Credit and Finance; Sales, Marketing and Developing Markets; and E-Commerce. The E-Commerce unit will continue to be led by Adam Mirabella, who will oversee distribution to key digital music providers, as well as wireless carrier partners. "I'm confident these changes will better serve our customers, label partners and their artists, and better situate WEA to fulfill our mission to get the right music in the right place at the right time," said John Esposito, President and CEO of WEA.
The reorganization reflects the increasingly important impact that digital formats are having, and the distribution demands that come with it. Most recently, Warner Music Group revealed that digital sales now account for 6 percent of its bottom line, a total that is being partially propelled by decreases in physical formats. The percentage was revealed during the company’s fiscal fourth quarter and full year earnings call. "Our focus on the digital music business has yielded dramatic growth in digital revenue," said label chairman Edgar Bronfman, Jr., while pointing to "four-fold year-over-year" improvements. The fiscal fourth quarter ended September 30th.
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