Question-and-Answer Session
Operator
(Operator Instructions)
Our first question is coming from William Drewry from Credit Suisse, and your line is open.
William Drewry - Credit Suisse
Thanks very much. I have two questions, if I could. One, the first one was, Edgar, I was just wondering, as you see the shift to mobile from digital that Michael alluded to, I was just wondering if you could talk about what implications that might have on the price model. I think that you in the past have expressed, I don’t know if frustration is the right word, but maybe discontent on the rigidity of digital pricing. I was just wondering what opportunities mobile might open up for you as that platform develops.
Then, a second one is, I think I sort of know the answer to this, but just wondering if you could talk about consolidation opportunities in the space right now, what maybe your M&A goals are for the company as you go into 2007, and anything that might be on the market, as there continues to be consolidation that might fit well with Warner Music. Thanks.
Edgar Bronfman
Let me answer the second question first. As you probably expect, we do not really talk much about M&A, though I suspect there are a number of non-Warner Music affiliated private equity partners on the call this morning, and we welcome them to the Warner Music call as well.
What I would say, which I have said before, not in any specific context, we are believers in the digital transformation of the media business. We are buyers of content and we are excited about our ability to take that content and expand its opportunity on the digital platform. So as opportunities become available, we will be interested and active potential purchasers.
With regard to mobile, we I think have always been very focused on the mobile opportunity. We have by far and away the largest mobile distribution footprint of any media company in the world, not just any music company. Our footprint reaches over 1.4 billion mobile subscribers, and because of the size and breadth of that footprint, we see different pricing models across different content in all kinds of markets. So there are full-track downloads, there are master tones, there are SMS tones, there are screensavers -- there is all kinds of content. I think we will see a fair amount of different pricing from carriers in different markets over time.
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