Shares in Warner Music fell to a record low on Monday – more than 60 per cent below their peak for the year – as the last quoted recorded music company became the focus for investors’ bearishness about the industry’s prospects.

Last month’s decision by Warner, which is due to report third-quarter earnings today, to drop its seven-year pursuit of EMI has raised questions about its prospects in the absence of a merger, which could have provided cost-saving opportunities and built a stronger rival to the larger Universal Music and Sony BMG.