Under the terms of the merger agreement, The Orchard’s outstanding stockholders received $2.05-per-share, in cash. This does not include interest or any applicable withholding taxes. The Orchard’s common stock has now been delisted from the Nasdaq Exchange.

Not everyone was thrilled with the lowly per-share price, though a rebound seemed unlikely. And, moving forward, Dimensional will save considerable overhead related to its public listing. That includes rigid disclosure requirements as mandated by the SEC, a loss for those attempting to get a better peek into the financial health of the sector. “The company will remain focused on enhancing its delivery platform, expanding its digital business, and building products to make our clients more efficient marketers,” Orchard CEO Brad Navin relayed.

Sounds manageable enough, and only a stretch from crossing into the black. The company is now selling 2.1 million tracks – up 49 percent from last year – and paid downloads ramped another 7 percent to 17.5 million units.

But the macro questions surround the sustainability of a model ultimately predicated on paid music transactions. Actually, the answer may be difficult to discern in the near future, as majority owner Dimensional Associates is now planning to take the company private. That is expected to happen during the third quarter, according to recent guidance from the company.

In an early morning pre-release to key media outlets, the label revealed losses of $25 million, or 17 cents a share, from $68 million, or 45 cents a share during the year-ago period. Consensus figures called for a drop of roughly 30-31 cents per share, give or take a few pennies.

Ahead of a complete financial review, top-level stats revealed continued cost-cutting. Sales actually dropped one-percent to $662 million based on continued CD sales drops. But lower costs were achieved operationally and through tax-related reductions. On the digital side, revenue grow 15 percent, a pretty package that remains a bit too small for everyone’s taste.

But, digital now accounts for 30 percent of total global revenue, a result that contains positive and negative elements. On the positive side, the continued digital increase suggests a shift towards newer formats. Closer to reality, the numbers are a bit misleading, because a collapsing physical story naturally boosts the shares of other revenue-generators.

Terra Firma head Guy Hands has received assurances from investors to commit an additional $159 million to EMI, which would reportedly cover terms of the loan until next spring; Hands had previously hoped to raise $546 million, to cover interest payments on its $4.6 billion loan from Citigroup through 2015. 

If Hands is unable to secure approval from enough Terra Firma investors, he would be forced to seek outside investments — but has only until May 14 to do so or else Citi will be in a position to potentially take over control of EMI. 

If Terra Firm is successful, the Times reports the company will look to sell its Christian music label and resurrect plans to license its U.S. music catalog.

Driving the nosedive were two colossal markets. The United States dipped 10.7, while Japan slipped 10.8 percent. Collectively, the pair accounted for roughly 80 percent of the broader revenue decline. Markets like Spain and Italy suffered far sharper percentage drops.

Number-tweaking produced a few bright spots. According to the group, digital sales offset physical declines in the UK, India, South Korea, Thailand, Mexico and Australia, though that calculation can be misleading. In decimated markets like Mexico, the comparison means little. And in almost all territories, digital formats are failing to recover what physical once commanded.

The bigger picture raises questions about the future of recording-specific revenues. In 2000, total industry revenues topped $36.9 billion, according to the IFPI. The past decade has witnessed a 53.8 percent drop.

Meanwhile, an under-the-radar surprise is coming from music retailers. Both Hastings Entertainment (HAST) and Trans World Entertainment Corporation (TWMC) have been posting serious gains of late, potentially on the strength of deal rumors. Just recently, Trans World chairman and CEO Robert Higgins purchased an additional 201,800 shares of TWMC at an average price of $1.76. By the Wednesday bell, Trans World appreciated 14.71 percent to $1.95.

Elsewhere, Sirius XM Radio (SIRI) remains the post-$1 stock that could. At the bell, shares of Sirius edged downward 2.65 percent but remained at $1.10.

That “uptick” was characterized as a “slow recovery” by Jessica Canning, global research director for Dow Jones. “As the liquidity and fundraising environments thaw, investors have more capital on hand but continue to deploy it cautiously,” Canning relayed.

The numbers are a broad look, though music-specific funding levels are also showing signs of life. Broader level liquidity is good for everyone, though the question is whether investors will scrutinize their music-related bets more closely moving forward. Most music-related investments returned donuts last decade, thanks to a raft of erroneous assumptions related to licensing and consumer behaviors.

Still, plenty were willing to play last quarter, across a wide swath of musical sectors, a trend that could signal a fresh round of musical risk-taking. But across-the-board, Dow Jones VentureWire editor Scott Austin pointed to a still-skinny environment. “With investors’ capital reserves low, the competition is intense not only for entrepreneurs looking to raise financing but also for venture capitalists trying to break into the best companies,” Austin relayed

The Company ended the quarter with 18.9 million subscribers, up nearly 345,000 from the same point in 2009.

“Our subscriber results represent a remarkably positive turn from the year ago quarter,” said Mel Karmazin, the CEO of Sirius XM.

“We also expect to report solid revenue growth and strong growth in pro forma adjusted income from operations for the first quarter of 2010.”

The news sent shares of the company up 6% by midday Wednesday.

But this is still a horse-race with many laps ahead. At the closing bell on Wednesday, Apple finished at the nosebleed $235, and an accompanying cap of $213.1 billion. Walmart landed at $55.60, for a resulting cap of $211.56 billion.

So what’s a few billion here and there? Perhaps the more important contest involves Microsoft (MSFT), whose second-place cap of $256.86 billion suddenly seems surmountable. Exxon Mobil (XOM) remains atop the roost, with a $316.23 billion valuation

Either way, the BusinessWeek report strongly suggests that Spotify is internally mapping a third-quarter jump. But licensing remains a tricky and time-consuming game, and a source of frustration for both the company and industry onlookers. Deserved or not, the drag is giving majors another dinosaur brush, though executives like Edgar Bronfman are clearly not playing a popularity game.