Warner Music Group revenue from streaming services for the first time surpassed other sources of income

Streaming services continue to gain popularity - this content distribution model remains one of the most convenient for users, due to which the audience of similar services is rapidly growing. This is also confirmed by the financial results of Warner Music Group - for the first time profits from such streaming services like Spotify and Apple Music ranked first in terms of profits for the Warner Music Group.

The level of profits from such services has totally surpassed sales of music on physical media, as well as profits from the purchase of content. However, it is unlikely this news was a surprise for any of the analysts - a year ago, the Warner Music Group announced that the revenue from streaming services surpassed that of standard downloads of musical compositions. Total revenues for the first quarter of 2016 Warner Music Group amounted to $ 745 million, showing an increase of 2.4% for the quarter.
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Revenue from the sale of musical compositions on physical media fell by 21% to $ 360 million, while profits from digital copies rose to $ 322 million.

“Revenue from streaming services continues to grow at an impressive rate - over the past quarter, growth was 59%. Just five quarters ago, the streaming segment of our business ranked third in terms of the level of revenue generated. Now, we have become the first major music company for which the streaming business has become the largest source of profit, ”said Steve Cooper, CEO of Warner Music Group.

The only thing that Steve Cooper did not mention in his address was the desire of all major music companies to leave the content distribution model on YouTube, which is now one of the main profit generators in the framework of streaming services. As an alternative, music labels have services such as Spotify, Apple Music, Tidal and others, whose audience growth is quite fast, which allows you to generate more and more profits.