Sanctuary, the world's biggest indie record company, is struggling. But it's not blaming file sharing. It's not blaming technology. In a shock decision, it's blaming... the management!
As the Guardian reports this morning:
The world's largest independent record label, Sanctuary Group, has admitted its debt is uncomfortably high and blamed its troubled Urban music division, run by Beyoncé Knowles' father, for a 40% slump in earnings.
As Sanctuary warned 10 days ago, earnings fell from £10.6m to £6.6m in the first half as album releases were delayed. Pre-tax profit plunged 81% to £1.3m, the company reported yesterday.
Sanctuary, which counts Destiny's Child, Lou Reed and Morrissey among its artists, said Sanctuary Urban, run by Matthew Knowles, was responsible for most of the album delays.
Who'd have thunk it?
