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Warner Music Group says streaming services now account for 25 percent of digital revenue
We've been seeing plenty of evidence that streaming music services like Spotify, Pandora and Rdio are pulling in more folks than ever, and we now also have a good idea of how that growth is affecting the bottom lines of music labels. In its third quarter earnings report, Warner Music Group revealed that streaming services now account for a full 25 percent of the digital revenue for its recorded music group. As AllThingsD reports, that translates to 8 percent of Warner Music's total revenue for the quarter, or about $54 million in all. What's more, that growth in streaming appears to be a net plus for the company all around, as it's apparently not cutting into traditional sales of digital music (at least, not yet), and is also bigger than the decrease in sales of physical media.
Warner Music talks trash about free streaming services, keeps using them
Warner Music Group CEO Edgar Bronfman Jr. isn't happy with free music streaming services. Shocking, right? Coming out yesterday with a barrage of disparagement for online streamers like Spotify and Last.fm, Bronfman Jr. made it clear that they do not represent "the kind of approach to business that we will be supporting in the future." Why is that, Eddie? The man in charge seems to think that paid subscription models are the future, because "the number of potential subscribers dwarfs the number of people who are actually purchasing music" online. That's wonderful and all, but he neglects to tell us the specifics of how and why Warner will succeed at something that every publisher would love to have, but none have managed to translate into reality yet. Additionally, WMG is not withdrawing its music library for the moment -- something a lot of publications seem to have erroneously reported (see Spotify tweet below) -- which leads us to believe the entire spiel is more of a renegotiating ploy than a concrete statement of intent. [Thanks, Wiggy Fuzz]
