Warner Music Group just made history. Today in the company’s second quarter earnings report, CEO Stephen Cooper made the following announcement:
“Just five quarters ago, streaming was the third-largest revenue source in our recorded music business, behind both downloads and physical. Today, we are the first major music company to report that streaming is the largest source of revenue in our recorded music business.”
Back in the first quarter of the year, Cooper was right on the money, literally, when he stated that “subscription revenue is a major driver of our growth and streaming revenue remains on a trajectory to become our largest revenue source.” This is largely thanks to popular subscription services like Spotify and the newly minted SoundCloud GO.
Citing the Fueled By Ramen imprint, Twenty One Pilots, and Panic! At The Disco as factors in this achievement, Cooper makes no mistake that signing and developing artists with regard to streaming appeal is the future of music.
H/T Music Week