Warner Music Group Corp. reported the other week that its loss has narrowed substantially, and in the latest period its revenue has actually surged, all thanks to music streaming.
“Five years after Access Industries’ acquisition of Warner Music Group, the company is growing revenue, OIBDA and market share,” Stephen Cooper, Warner Music Group’s CEO says of the company’s third quarter earnings report, “Our results underscore this momentum, driven by exceptional music from our artists and songwriters, our expanded global reach and strong leadership from our team around the world. With our recorded music streaming revenue now approaching double the size of our download revenue, and still growing fast, we are on course for another excellent year.”
The company posted a loss of $9 million on revenues of $811 million for the quarter ending June 30, which is a great improvement over the $44 million loss it reported in the corresponding quarter last year. This represents a 14 percent growth in revenue, which a lot of this is thanks to music streaming.
Cooper added that the revenue results during the quarter was “our largest third-quarter revenue since Access’ ownership began.”
This hike was largely thanks to a 45% yearly increase in record streaming revenues.
Music Business Worldwide estimated that of Warner Music Group’s $348 million digital music revenues, around $230 million of this figure came from streaming, with around $118 million being accounted by downloads.
This means that Warner were generating over $2.5 million a day from streaming! And close to $20 million a week!
Cooper’s report continued:
“We can report that our Recorded Music streaming revenue grew more than 45% over the prior-year quarter.
“Streaming revenue for the quarter was about double the size of download revenue, and was meaningfully larger than physical revenue.”
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