Both Sony and EMI have reported recent financial losses as any cost-cutting measures the companies have undertaken failed to make up for lagging music sales. During the fiscal third quarter ended December 31, Sony Music Entertainment (SME) generated $1.16 billion in revenue, which is a 22 percent decrease compared with the same quarter of the previous fiscal year. Consolidated sales also decreased 24.6 percent year-on-year. Sony said in its report that "revenues were negatively impacted by the accelerated decline in the worldwide physical music market resulting from the worldwide economic slowdown, as well as unfavorable exchange rates." SME's best selling albums in the quarter were AC/DC's Black Ice, Beyonce's I Am...Sasha Fierce, P!nk's Funhouse and Britney Spears' Circus.

Meanwhile, EMI Group reported a first-half loss of £155 million ($221.9 million) on Friday. The music group's net loss for the six months ended September 30 narrowed from a £324 million loss in the same half of last year, reports the Wall Street Journal. Under Terra Firma's ownership, EMI has cut costs by reducing marketing dollars and giving musicians smaller advances. While such cuts are helping to reduce the company's losses, they also appear to be costing EMI market share, notes the WSJ. EMI's share of global CD sales fell to 9.8 percent from 10.6 percent in the half. The market share decline "reflects historical problems," the company said in a statement. "It will take some time to see the impact of a rebuilt roster and the full recovery of EMI music."