5.8.16 Streaming surge drives double-digit revenues at WMG
May 8, 2016 1:06:53 GMT -5
Post by Q3 on May 8, 2016 1:06:53 GMT -5
Q3 note: I am posting these general music business news articles because many ATop members are interested in how artists and labels make money. And there is a massive change underway.
Streaming music has become Warner Music’s biggest business
By Peter Kafka May 6, 2016, 6:10 AM PDT
Another milestone in the music industry’s shift to streaming: Revenue from the streaming business has become Warner Music Group’s biggest business.
The company announced that money from services like Spotify and Apple Music was the single biggest source of recorded music revenue in the first quarter of the year, surpassing both physical sales and sales of digital downloads. That’s the first time any of the big music labels has hit that inflection point.
It also shouldn’t be a surprise, since Warner announced a year ago that streaming revenue had surpassed download for the first time. And if you want the glass-half-empty version of the statistic, you could argue that it means download sales and CD sales continue to fall.
Still, even a music pessimist would have to note that the streaming boom is now bigger than the rest of the industry’s decline. Warner’s streaming music revenue increased $72 million for the quarter — more than half of which came from sales outside the U.S. — while downloads declined by $17 million and physical revenue dropped by $6 million. Warner’s recorded music sales increased by 10 percent overall, and the company’s total revenue also increased 10 percent.
Warner, like the rest of the music industry, would like more than that. And Warner, like the rest of the music industry, is now hammering Google and YouTube to cough up more money — a campaign that coincides with the big labels’ renegotiations with the world’s biggest video service.
“It is imperative that we ensure a fairer correlation between the massive consumption of music via services built around user-uploaded content and the value generated for artists, songwriters and rights holders,” CEO Stephen Cooper said during Warner’s earnings call this morning. “We have made our views known through our submissions to the European Commission and the U.S. Copyright Office.”
Which isn’t to say that Warner, or the rest of the music business, really wants to walk away from YouTube — it’s simply too big to ignore. Case in point: Last night at YouTube’s big “brandcast” event to woo advertisers, YouTube spent several minutes talking about the importance of music to its users, and then brought out an up-and-coming performer who testified that they had gotten a big boost from the service.
The act? Andra Day. Her label? Warner Music.
Link: recode.net/2016/05/06/streaming-warner-music-youtube-google/
Streaming Is Saving Warner Music Group…
Charlotte Hassan May 6, 2016
Streaming surge drives double-digit revenues at Warner Music Group.
Today, (May 6th) Warner Music Group released their Q2 financials showing double-digit revenue growth. The company’s revenue increased by a massive 10% — or a 13% increase excluding currency exchange — which totals revenue of $745 million.
The company — which is the third largest in the music business — says that its second quarter growth was fueled by a surge in streaming. In a statement, Stephen Cooper, CEO of Warner Music Group broke it down:
“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… and this new milestone comes only four quarters after our streaming revenue first topped our download revenue.”
Cooper also added that the company’s streaming revenue on recorded music increased by a massive 59% in the quarter.
”This rapid transformation is evidence of our ability to sign, develop and market artists that thrive in the streaming world.”
Last month, the RIAA announced that for the first time ever, streaming made up the largest component of the total U.S music industry revenue in 2015, marking a major milestone for the format. Streaming now accounts for 34.3% of the pie.
But is streaming saving the broader recording business? Streaming is definitely adding a sizable amount of revenue to the music industry, and the notion that it is driving the industry’s growth is something that Spotify’s Daniel Ek is consistently proclaiming. Ek said…“now, finally, after years and years of decline, music is growing again” and ”streaming is behind the growth in music.”
This is difficult to disprove when more and more companies in the music industry report growth in streaming and an increase in revenue as a result.
Link: www.digitalmusicnews.com/2016/05/06/warner-music-groups-double-digit-growth-fuelled-by-streaming/
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Skaschep:
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QAL has a 2-hour slot at Isle of Wight Festival
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Queen + Adam Lambert Summer Festival Tour
Friday, May 20, 2016 Queen + Adam Lambert @ Rock In Rio - Lisbon Lisbon, Portugal
Sunday, May 22, 2016 Queen + Adam Lambert @ Palau Sant Jordi Barcelona, Spain
Wednesday, May 25, 2016 Queen + Adam Lambert @ Stadion Linz Linz, Austria
Friday, May 27, 2016 Queen + Adam Lambert @ Rhein Energie Stadion Cologne, Germany
Sunday, May 29, 2016 Queen + Adam Lambert @ Jelling Music Festival Jelling, Denmark
Friday, June 3, 2016 Queen + Adam Lambert @ Kaisaniemi Park Helsinki, Finland
Sunday, June 5, 2016 Queen + Adam Lambert @ Tallinna Lauluväljak Tallinn, Estonia
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Sunday, June 12, 2016 Queen + Adam Lambert @ Isle of Wight Festival Newport, United Kingdom
Wednesday, June 15, 2016 Queen + Adam Lambert @ Palais 12 Brussels, Belgium
Friday, June 17, 2016 Queen + Adam Lambert @ Rock The Ring Hinwil, Switzerland
Tuesday, June 21, 2016 Queen + Adam Lambert @ Bucharest Constitutiei Square Bucharest, Romania
Thursday, June 23, 2016 Queen + Adam Lambert @ Georgi Asparuhov Stadium Sofia, Bulgaria
Saturday, June 25, 2016 Queen + Adam Lambert @ Anfiteatro Camerini Piazzola Sul Brenta, Italy
June 2, 2016 Macy’s American Icons Digital Music Festival on YouTube. (Adam is not scheduled to be part of this but he might be shown as part of Macy's American Icon campaign.)
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Happy Birthday
fightthesleep, jamafanta, mercurylynne,
Misspeech, skylar and ultimateglambert!!
HAPPY MOTHER'S DAY!
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Happy Birthday
fightthesleep, jamafanta, mercurylynne,
Misspeech, skylar and ultimateglambert!!
HAPPY MOTHER'S DAY!
HAPPY ADAM LAMBERT DAY!!!