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Warner Music Reveals Streaming Earnings Has Overtaken Downloads

Warner Music Reveals Streaming Revenue Has Overtaken Downloads

That included a 33% enhance in streaming income, as it overtook WMG’s obtain revenues for the primary time. “The price of this growth has made it abundantly clear to us that in years to return, streaming might be the way in which that most individuals get pleasure from music,” chief govt Stephen Cooper instructed analysts within the company’s earnings name.

Cooper’s feedback come at a time when the economics of streaming music are the subject of intense debate throughout the music industry, with two important issues. Firstly, whether or not streaming - and the free, on-demand streaming tiers of companies like Spotify and Deezer - is making as a lot cash as artists, songwriters, and labels and publishers representing them, need. And, secondly, whether or not streaming even pays off for the businesses offering it, given that flagship service Spotify recorded losses of €162m in 2014 alone. Grainge’s comments have been interpreted as a desire by his firm to limit or even remove the free tiers of companies like Spotify, but Cooper advised caution in his feedback to analysts.

“There are any variety of models on the market, and all of those fashions - ad-based mostly, subscription-based mostly or with each - are better than piracy. To be crystal clear: piracy is zero income, it’s the theft of intellectual property, and it’s not good for anybody. So all of these models are better than piracy,” mentioned Cooper.

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