This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Business News Digital Labels & Publishers
Streaming now biggest revenue stream at Warner Music
By Chris Cooke | Published on Monday 9 May 2016
Warner Music announced some “impressive” results last week that were clearly – and I mean, no one could possibly doubt this, so clear was the clearness of the clarity – which is to say, the “impressive” results were clearly the result of some fucking magnificent music from all the artists and songwriters that make fucking good music for the Warner business.
Oh. And the mini-major’s magnificent leadership in the music industry’s digital transformation and expanding global footprint, not to mention some excellent execution globally. Let’s not forget the magnificent leadership in the music industry’s digital transformation, the expanding global footprint and the excellent execution globally. I nearly did forget all three, which was somewhat embarrassing.
Fortunately Warner Music boss Stephen Cooper was on hand to remind me. “These impressive results were driven by outstanding music from our artists and songwriters, the expansion in our global footprint, our leadership in the industry’s digital transformation and excellent execution globally”, said he, as if he was writing the intro to a story on his firm’s financials in the CMU Daily. Though the music was “fucking magnificent”, please remember that Steve.
Anyway, Warner Music released quarterly financials last week, with total revenues up 13.4% (on a constant-currency basis), while digital revenue was up 25%. Quarterly operating income was up to $127 million, while net income was down to $12 million, compared to the prior-year quarter. Is that impressive? Well, Steve reckons so. And with such outstanding music, magnificent transformation, expanding footprints and excellent execution, who could argue with that?
Anyway, we are gathered here today mainly because in this batch of quarterly financials Warner revealed its single biggest revenue generator was now streaming. Monies from streaming services were already exceeding download loot, but now the streams have even passed good old physical discs in the revenue stakes.
“We are now the first major music company to report that streaming is the largest source of revenue in our recorded music business, surpassing our revenue from physical formats”, said the Coop. “And this new milestone comes only four quarters after our streaming revenue first topped our download revenue”.
Some indies would likely say “yeah mate, well done and all, but streaming has been our biggest revenue stream for ages now, so, stop your bragging”, but still, it’s another landmark in the recorded music industry’s steady march towards becoming a consumption rather than sales based business.
