Skip to content

May 6, 2016

Warner Music makes most of its money from streaming

by John_A

The rise of streaming services has definitely changed how we consume music. It’s also changing how record labels make money. In its earnings report for Q1 2016, Warner Music Group, one of three major labels alongside Sony and Universal, revealed that streaming is now its biggest source of revenue in terms of recorded music. It also says it’s the first “major music company” to report this transition. More specifically, Warner’s revenue from streaming rose $72 million during the quarter, putting it ahead of physical sales and digital downloads for the label. Of course, the decline of physical sales has been well-documented both globally and the US.

Warner Music Group, like other labels, aren’t settling for rising streaming revenue. If it’s going to take over records sales, companies want to be adequately compensated for all music that’s being streamed. That includes from so-called “safe harbors” that allow users to upload songs, like YouTube.

During Warner’s earnings call, CEO Stephen Cooper said it’s crucial to “ensure a fairer correlation” between royalties from paid subscriptions and those places where people can listen for free. He went on to say that Warner had made its position known to both the European Commission and the US Copyright Office. As streaming continues to grow and physical sales likely continue to decline, this battle over the “value gap” will certainly heat up.

Via: Recode

Source: Warner Music Group

Read more from News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: