And–surprise, surprise–it looks like the record companies are actually earning money from streaming music. Warner Music Group announced Thursday that it saw strong growth in digital revenue in its “Recorded Music” business last quarter. It also said that 25 percent of its digital revenue for Recorded Music came from streaming services.
AllThingsD did the math: Approximately $54 million, or about 8 percent of Warner’s total revenue for the third quarter of its fiscal year, came from streaming services. In fact, Warner said that when you take out the effect of international currency fluctuations, its digital sales increased enough to offset its decrease in physical sales.
In other words, people are buying fewer physical CDs in record stores, but to make up for that fact they are purchasing more online music.
Anyway, I’m happy that Warner Music Group is making good money off of streaming services, and digital music in general. I hope this means that record companies will see what everyone else has seen for the past ten years–the Internet, and digital music, is not the enemy. (The RIAA, on the other hand…)