Warner Music Group (WMG) was out of favor with the market today. At the time of this writing, shares of the company were down over 16% on big volume. Wall Street did not appreciate the fourth-quarter release.

According to TheStreet.com, a loss, on an adjusted basis, of 3 cents per share was recorded. Analysts were hoping for a profit of 5 cents per share. The cited article goes on to report a not-so-comforting outlook for the near future. And in further bad news, TheFlyOnTheWall.com mentions a downgrade on the stock.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) reported better-than-expected Q2 results, sending shares higher.
• Blackstone Group (NYSE: BX) said it swung to a Q2 profit despite a dearth of leveraged buyouts.
• CBS Corp. (NYSE: CBS) Q2 earnings declined but still topped estimates, sending shares higher.
• Coinstar Inc. (NASDAQ: CSTR) reported stellar Q2 results driven by its the popularity of RedBox.
• Clorox Co. (NYSE: CLX) posted solid Q4 earnings but said revenues were flat due to currency effects.
• Duke Energy Corp. (NYSE: DUK) lower Q2 earnings beat expectations by a penny but revenue fell short.

Warner Music (NYSE: WMG) closed at $5.11. WMG August and November option implied volatility of 92 is near its 26-week average of 96, according to Track Data, suggesting non-directional price movement.

Live Nation (NYSE: LYV) a producer of live concerts, closed at $4.70. LYV over all option implied volatility of 77 is below its 26-week average of 109, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Warner Music (NYSE: WMG) has told Google (NASDAQ: GOOG) to take it videos off of YouTube. It does not think that having them there creates enough revenue for the music company.

According to The Wall Street Journal, "Warner, like the three other major-label groups, licensed its recording and music-publishing catalogs to YouTube shortly before the site's acquisition by Google Inc. in 2006." Obviously, the revenue-share of the advertising dollars from marketing messages that Google sells next to the Warner content is remarkably poor.

Google has been hoping to show that it can make money from the largest video site in the world. Based on company comments and its earning releases, the effort is yielding no success. That makes the search company's acquisition of YouTube look like a bust. Because Google is such a huge earnings machine, it hardly matters.

Not so for Warner, which is dying fairly fast as music moves from CDs to digital delivery though channels like the Apple (NASDAQ: AAPL) iPod and music download and streaming websites. The stock market is voting that Warner's efforts won't work. The company's shares trade at $3, down from $23 less than two years ago.

If outlets like YouTube don't yield substantial revenue for Warner, the company is toast.

Douglas A. McIntyre is an editor at 247wallst.com.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Eagle Outfitters Inc. (NYSE: AEO) saw lower Q3 results in the tough retail envirnoment.
• Analog Devices Inc. (NYSE: ADI) Q4 profit surged but it lowered its Q1 forecast due to slowing orders.
• Borders Group Inc. (NYSE: BGP) had dismal Q3 results and said it had ceased its quest to sell itself.
• Campbell Soup Co. (NYSE: CPB) solid Q1 results beat estimates but shares fell despite a market rally.
• Deere & Co. (NYSE: DE) fell short of Q4 profit expectations and guidance was below estimates.
• Dollar Tree Inc. (NASDAQ: DLTR) had a bigger-than-expected Q3 profit and raised its full-year outlook.
• D.R. Horton Inc. (NYSE: DHI) reported a wider Q4 loss as home sales revenue declined by 50%.
• Hewlett-Packard Co. (NYSE: HPQ) posted strong Q4 numbers that didn't quite match the preliminary results.
• Salesforce.com Inc. (NYSE: CRM) had strong results and an optimistic forecast despite economic conditions.
• Starbucks Corp. (NASDAQ: SBUX) lowered its fiscal 2009 forecast and warned of further restructuring.
• Tiffany & Co. (NYSE: TIF) Q3 earnings declined but topped expectations, and it announced staff reductions.
• Warner Music Group Corp. (NYSE: WMG) Q4 earnings beat expectations though revenues fell slightly.
• Xerox Corp. (NYSE: XRX) forecast a full-year profit in line with estimates and said it is confident in its liquidity.

Upcoming earnings releases include Sears (NASDAQ: SHLD), Staples (NASDAQ: SPLS), Aeropostale (NYSE: ARO), Del Monte Foods (NYSE: DLM), Guess (NYSE: GES), Novell (NASDAQ: NOVL), Toll Brothers (NYSE: TOL), Big Lots (NYSE: BIG), Royal Bank of Canada (NYSE: RY).

Visit AOL Money & Finance for more earnings coverage.

Warner Music Group (NYSE: WMG) has asked CBS Corporation's (NYSE: CBS) free on-demand music streaming service Last.fm to remove the label's music from the site "in an apparent dispute over compensation rates." Billboard reports that CBS is "currently negotiating a new agreement with Warner Music Group and are working hard to built the most comprehensive music service on the Web." Music from Universal Music Group, Sony BMG Music Entertainment, EMI Group, and various independent labels remains on Last.fm, and the site's Internet radio service still offers songs from WMG artists.

CBS purchased British-based Last.fm a year ago for $280 million, and WMG was the first major label to sign with Last.fm in February 2007. According to Billboard, WMG had continued to keep music with Last.fm "on a month-to-month basis" after the original deal lapsed. Unlike paid subscription-based services, Last.fm and other free services offer consumers music without charge, and are ad-supported. News Corp.'s (NYSE: NWS) MySpace will soon be starting it's own similar service, which will tap into the social networking site's large user base.

Billboard also reports that WMG had grown "disenchanted with Last.fm's compensation rates" after comparing the rates to other services like the forthcoming MySpace Music. In addition, WMG "owns equity stakes in MySpace Music" and "has been frustrated by Last.fm's failure to proceed with its plans to launch a music subscription service." Paid subscription services have been being pushed by the music labels over other sites and stores like Apple Inc.'s (NASDAQ: AAPL) iTunes Store because they offer better profits for the labels. Mobile phone services have started to tap into this very service, offering consumers music and players on new phones developed for that very purpose.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American International Group Inc. (NYE: AIG) reported a loss of $7.8 billion but raised its dividend.
• Barr Pharmaceuticals Inc. (NYSE: BRL) missed earnings estimates and lowered its guidance.
• D.R. Horton Inc. (NYSE: DHI) posted a larger-than-expected Q2 loss on further write-downs.
• Fannie Mae (NYSE: FNM) posted its third straight quarterly loss on the continuing housing slump.
• Hansen Natural Corp. (NASDAQ: HANS) lower-than-estimated Q1 profit led shares to a 52-week low.
• Lazard Ltd. (NYSE: LAZ) net income dropped 71% on a fall-off of M&A activity and a write-down.
• MGM Mirage Inc. NYSE: MGM) Q1 profits were dragged down by decreased consumer spending.
• Pilgrims Pride Corp. (NYSE: PPC) widened its Q2 loss due to the rising cost of feed.
• Playboy Enterprises Inc. (NYSE: PLA) swung to a Q1 loss as revenue declined in all units.
• Qwest Communications (NYSE: Q) net income and revenue fell in the first quarter.
• Scotts Miracle Gro Co. (NYSE: SMG) blamed a slow start to spring for its Q2 profit decline.
• Teva Pharmaceutical Industries Inc. (NASDAQ: TEVA) posted a Q1 loss due to a charge.
• THQ Inc. (NASDAQ: THQI) posted a loss for its fourth quarter and revenues flat for the year.
• Toyota Motor Corp. (NYSE: TM) posted lower-than-expected Q4 results due to the U.S. economic slump.
• Warner Music Group Corp. (NYSE: WMG) Q2 loss widened and it suspended its quarterly dividend.

MAJOR PAPERS:

• John Meriwether, whose Long-Term Capital Management lost $4B in 1998, has new troubles with JWN Partners, as his Meriwether's largest hedge fund has fallen 28%, and another market fund is also down. Investors have until Monday to ask to pull out their investment, the Wall Street Journal reported.
• The Wall Street Journal also reported that failed mortgage provider New Century Financial might be able to get back some of its lost funds by suing its auditor KPMG, according to a court appointed investigator who looked at the company's demise.
• After reaching a deal that allows its customers to access many of Universal Music's songs, the Financial Times reported that Nokia Corporation (NYSE: NOK) is in talks with the other three leading record companies - Sony Corporation's (NYSE: SNE) Sony BMG, EMI and Warner Music Group Corp's (NYSE: WMG) - about giving its customers access to their catalogues.

WEB SITES:

• Comscore has released its February "U.S. paid clicks" report, according to a source, which reportedly said Google Inc's (NASDAQ: GOOG) paid clicks in the U.S. during the month increased 3% year-over-year; however, the 'slight, slight improvement' from January may not actually be, the Silicon Alley Insider reported, since Comscore did not adjust for Leap Year. Google's paid clicks in December were up 12% and up 27% in November.

Napster (NASDAQ: NAPS) -- the mother of all file-sharing services that in 10 years' time has found itself one among many digital-music services struggling for its very survival -- is hoping its new move will attract more users. Today, Napster CEO Chris Gorog said the company is shifting to MP3 downloads free of digital-rights-management software [subscription required], or DRM.

The move is expected to occur sometime in the second quarter, but Napster has yet to finalize the arrangements with some of the four major music companies - Sony Corp. (NYSE: SNE), Warner Music Group, EMI Group and Vivendi SA's Universal Music Group. The final three on this list recently began selling MP3s on the download service available through Amazon.com (NASDAQ: AMZN). Sony has yet to report plans to sell its tracks as MP3s, but is reportedly expected to come forward soon.

Today Amazon.com, Inc. (NASDAQ: AMZN) announced an agreement with Warner Music Group Corp. (NYSE: WMG) to distribute music through the Amazon.com digital music store. The key feature to these downloads will be the absence of digital rights management (DRM), meaning that customers who download these songs will not be restricted in their use. They will be able to play them with any music player or computer, unlike Apple, Inc. (NASDAQ: AAPL)'s limited format.

Now, more than 2.9 million titles will be available at Amazon, including those by many well-known artists. Warner Music is added to the line-up, which already included Universal Music Group, EMI Group plc (ADR) (OTC: EMIPY), and thousands of independent labels.

Songs on Amazon cost $0.89 to $0.99, with full albums priced at $5.99 to $9.99. These prices are somewhat comparable to Apple's iTunes, whose individual songs sell for $0.99, with album prices varying.

While some consumers and analysts feel that DRM is necessary to protect the financial interests of the artists and record companies, others think that the lack of DRM will actually benefit them more in the long run. By making the music more accessible and transferable, some people think that consumers will be more likely to buy more music. (I agree!)

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Madonna has been a trend setter for three decades and has built, not just a music empire, but a financial one. She is brash and savvy. The "Material Girl" who popularized wearing undergarments as formal wear and accent pieces has made another splash this year, not with her music or wardrobe, but with her new record contract.

She has abandoned the major record labels to sign on with a concert promotion machine for $120 million. Goodbye long-time record label, hello Live Nation (NYSE: LYV). In October, the iconic and very wealthy 49-year-old Madonna signed her biggest contract to date, and one Warner Music Group (NYSE: WMG) would not match.

Live Nation, the concert promoters, have acquired her touring and recording rights. Her first album was released in 1983, 26 24 years ago, and she has been going strong ever since. According to published reports: "The rights to Madonna's tours, which continue to be highly profitable, will now be owned exclusively by Live Nation. Last year's Confessions tour featured eight sell-out performances at Wembley Arena, which is managed by Live Nation. The tour grossed $260m."

Specifics include an $18 million signing bonus and an additional advance of $17 million in cash and shares for each of the three albums in the ten-year deal. If Madonna goes on tour, she will get up to 90 percent of the profits, with only 10 percent reaching Live Nation.

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Campbell Soup Co. (NYSE: CPB) first quarter profits fell, but the CEO remains optimistic.
• Dell Inc. (NASDAQ: DELL) met EPS expectations, but shares fell in after-hours trading anyway.
• Marvell Technology Group Ltd. (NASDAQ: MRVL) beat EPS estimates despite posting a loss.
• Medtronic Inc. (NYSE: MDT) had a weak second quarter, but CEO remains optimistic about growth potential.
• Sears Holdings Corp.'s (NASDAQ: SHLD) profit plunged, and the company warned of continuing difficulties.
• Staples Inc. (NASDAQ: SPLS) beat low expectations, sending shares up.
• Tiffany and Co. (NYSE: TIF) posted a solid third quarter and boosted its full-year earnings outlook.
• Warner Music Group's (NYSE: WMG) profit declined; digital sales were up but CD sales were down.

Also, Jim Cramer offers perspective on the problem with Sears Holdings. And AOL Money & Finance's new dynamic stock quotes pages make keeping up with earnings, and any other stock-related information and news, much easier. Check it out.

Upcoming results to watch for include: AutoZone Inc. (NYSE: AZO), Novell Inc. (NASDAQ: NOVL), and National Semiconductor Corp. (NASDAQ: NSM).

Visit AOL Money & Finance for more earnings coverage.

Warner Music Group (NYSE: WMG) could really use some good news. Even after an 8% bump on Thursday resulting from a less bad than expected quarter, the stock's 1-year chart looks like a snapshot of the Titanic as it sank.

Hopefully the Chairman of the Board can turn things around: the company has signed a deal with the family of vocal legend Frank Sinatra to manage the singer's work and likeness.

According (subscription required) to the Wall Street Journal, "Thanks to the iconic status of Mr. Sinatra, who died in 1998, there are a range of potential opportunities, including resorts, Broadway-type revues and others, said Scott Pascucci, president of Warner's Rhino Entertainment, which is overseeing the new venture. "

Sinatra was once synonymous with cool, and clever marketing could lead to a resurgence similar to the one Tony Bennett has enjoyed in recent years. Terms were not disclosed, but this looks like a swing in the right direction for Warner.

Warner Music Group Corp. (NYSE: WMG) announced today a $5 million net profit in the last quarter, compared to $12 million at this time last year. Continued growth in digital sales over sales of physical albums (CDs) is cited as the reason for this drop. There is good news out of that growth as digital sales for WMG rose 25% during the quarter, but according to Billboard this could not make up for CD sales. Across the board, the report indicates that album sales in the United States were down 14% in the last year. Fans are using digital stores like Apple Inc. (NASDAQ: AAPL)'s iTunes store to buy tracks in greater quantities than full albums.

In mid-October, WMG lost a major artist when Madonna opted to sign a new contract with tour promoter Live Nation (NYSE: LYV). For years, WMG had also been mentioned as a possible buyer of London-based EMI Group, but the seven-year rumor ended when Terra Firma bought the music company and took it private. Billboard indicates that WMG is attempting to create new business relationships with the company's roster of artists, much like the other major record companies. This new business model would include "new digital services as well as a share of image rights, advertising, touring and management revenue."

WMG's profit decline is certainly not unexpected, and it is another indication that the digital market is the one these companies should be focusing their attention. As movies and television shows are indicating, the internet and online stores are providing new outlets for material to be tested and offered to fans. It would be prudent to test similar measures and see what the results might be. Clearly, interest would be maintained as fans are already buying more material through online stores versus strolling through retailers looking for CDs.

MAJOR PAPERS:

• In an interview with the Financial Times (subscription required), Carl Icahn said of Motorola (NYSE: MOT): "There is value there, and if that value doesn't manifest itself, I as an activist, would think very seriously about coming back."

OTHER PAPERS:

• Universal Music is in talks with Sony Corporation's (NYSE: SNE) Sony BMG and Warner Music Group (NYSE: WMG) over launching a music subscription service to be called Total Music, which would be free on certain devices, reported the Telegraph.
• While Emerging Memory Technologies CEO Sreedhar Natarajan would not confirm the deal, stating "I'm under a non-disclosure agreement," it is clear that EMT has been acquired by Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the Ottawa Citizen reported.
• Lehman Brothers analyst Douglas Anmuth believes Google (NASDAQ: GOOG) will launch a mobile phone similar to that of Apple's (NASDAQ: AAPL) iPhone in February, reported the Independent.
• The Associated Press reported that Nomura Holdings (NYSE: NMR) announced that it will close its mortgage-backed securities business in the U.S., and expects a group pretax loss of between $240M and $510M for the quarter ended in September.

WEBSITES:

• According to Unstrung.com's sources in the finance community, Cisco Systems (NASDAQ: CSCO) is expected to enter the WiMax arena before the end of the month, and Navini Networks is Cisco's preferred target.