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 Labels & Publishers
Warner Music Group sees 74% boost in streaming income
By Andy Malt | Published on Monday 15 December 2014
Warner Music Group’s income from streaming grew by $215 million in the year up to 30 Sep, it was revealed last week. This is up from $86 million the previous year. Most of the increase – $200 million – came through the company’s recorded music division.
Overall, the smaller of the music majors saw revenues increase to just over $3 billion, 40% of which came through digital services. However, operating losses also increased, in part due to ongoing costs related to the acquisition of the Parlophone Label Group. Though Billboard notes that if PLG’s figures are taken out, then WMG would have seen a 5.6% decline in revenues year-on-year.
Speaking on an earnings call last week, CEO Stephen Cooper referenced the difference in revenues provided by ad-funded and subscription streaming (the latter being far more lucrative), saying that the reason the company still provides its content to the former is “because it provides the means for consumers to discover the advantages of the premium offerings”.
And doing that is of interest to the company at large because, while Warner saw an overall increase in digital revenues, income from the sale of downloads fell by 14% – just $1 million separating streaming and downloads in the final quarter of the firm’s 2013/14 financial year. Physical revenues meanwhile dropped a further 9%.
As usual, a chirpy outlook came with the financial statement, Cooper saying: “We are proud of everything we accomplished this year. We had great success with artists at all stages of their careers, breaking amazing new talent as well as taking our established roster to new heights. At the same time we expanded our digital footprint, announced several groundbreaking partnerships and pushed into emerging markets, ensuring we are well positioned to capitalise on future growth opportunities as the industry evolves and streaming services achieve scale”.