“In our Recorded Music business, strong growth in digital revenue more than offset the decline in physical revenue on a constant-currency basis, showing the promise of the industry’s transformation.” —Stephen Cooper, Warner Music Group’s CEO
In a press release accompanying Warner Music Group’s third-quarter earnings, the company’s CEO called out increased revenue in both digital downloads and streaming music.
As reported by Peter Kafka at AllThingsD, streaming services accounted for one-quarter of the digital revenue that its recorded music group took in over the last three months.
Overall, recorded music digital revenue was up 13 percent from the year-ago quarter, to $230 million, and digital revenue represented 41.5 percent of recorded music revenue, up from 34.9 percent in the year-ago quarter. (Of course, as a whole Warner Music Group still lost $32 million for the quarter, but that’s another story.)
That’s all good news for an industry that, arguably, is being pulled kicking and screaming into the digital age. With the increasing popularity of streaming music services such as Mog, Rdio, Rhapsody, Spotify, and Slacker, plus Pandora and subscription satellite services, there’s a chance that there’s a lasting business model that can serve both the needs of the music industry and the customers it depends on.
This story, "Warner's strong streaming revenue a good sign for the industry" was originally published by TechHive.