Warner Music struggles against downloads

LOSSES widened at Warner Music Group as the world's third-largest music publisher continued to struggle with the industry's transition from CDs to digital downloads.

The New York-listed company - whose artists include Paolo Nutini, Emmylou Harris and Genesis - posted a first-quarter loss of $18 million (11m) compared with $17m in the previous first quarter. Sales fell by 14.1 per cent to $789m, although digital revenue grew 1.6 per cent to $187m.

Chief executive Edgar Bronfman declined to comment on reports from last month that the company has put itself up for sale while simultaneously exploring the possibility of buying smaller rival EMI Group.

But Bronfman did reveal that the company lost market share to rivals - including Vivendi's Universal and Sony - during the key Christmas period.