Gutersloh, Germany - German media conglomerate Bertelsmann has reported its annual earnings for 2007, and said that revenues from its share of joint venture record label Sony BMG fell 27.8%, to $2.3 billion, as physical revenues fell 17% and digital revenues increased by 40%. Digital now accounts for 17% of total revenue at Sony BMG, up from 12% in 2006.

Sony BMG's revenue has now fallen 46.3% over the last five years, while the number of employees at the label has dropped from 4,880 in 2003, to 2,851 in 2007.

Bertelsmann chief financial officer Thomas Rabe also recently spoke with the Times Online about a potential sale of Bertelsmann's stake in Sony BMG. "

What we will do depends on price," Rabe told the Times Online.

"Of course, the EMI price is a good price for a seller, but we would not be interested in selling if we were offered a figure based on the current valuation of Warner Music. The market is undervaluing music assets.'"

Related Links:
http://snipurl.com/228oo (PDF of Bertelsmann annual report)

http://www.coolfer.com/blog/archives/2008/03/bertelsmann_pro.php

http://snipurl.com/228qt (Times Online)

http://www.sonybmg.com

http://www.bertelsmann.com