Warner Music Group’s reliance on streaming revenue reaches a tipping point

warner music group streaming
Garry Knight/Flickr
Musicians decrying streaming have become a dime a dozen — which is more than they make per stream in many cases — but the format is paying off nicely for at least one major label. Warner Music Group announced today that its recorded music business’ biggest source of revenue during the fiscal quarter ending March 31 was streaming.

The company’s total revenue grew by 10 percent during the three-month period, and streaming’s impact could be seen in a digital revenue increase of 21.2 percent. Growth on the digital revenue side helped offset the declines for the company on the physical revenue side. Although it’s not a shock, given how streaming has spiked in recent years, it’s interesting to see the format propel WMG to a new milestone.

“We are now the first major music company to report that streaming is the largest source of revenue in our recorded music business, surpassing our revenue from physical formats,” said CEO Stephen Cooper, in a press release. “And this new milestone comes only four quarters after our streaming revenue first topped our download revenue.”

Cooper specifically highlighted the “industry’s digital transformation,” which is evidently smothering physical formats. Interestingly, streaming’s growth comes in spite of the perception of many Americans that the services are “too expensive.” WMG’s numbers indicate that consumers as a whole are still willing to pay to stream music — apparently more so than any other medium.

The music company’s artists, of course, played a huge part in its successful quarter, and Cooper mentioned the role of “outstanding music from [WMG’s] artists and songwriters.” Artists like Ed Sheeran (Spotify’s superstar), Coldplay (likely with a Super Bowl halftime show boost), Twenty One Pilots, Charlie Puth, and Gesu No Kiwami Otome were especially notable sellers.

Clearly, many consumers don’t agree with Adele’s December assessment of streaming as a “disposable” medium.

Mobile

The vast majority of YouTube users hit the site for how-to videos

Ever searched for a how-to video on YouTube? Of course you have. The streaming site is bursting with useful guides on how to do stuff, and a recent study has revealed that more users than ever are using it as a learning resource.
Movies & TV

'Prime'-time TV: Here are the best shows on Amazon Prime right now

There's more to Amazon Prime than free two-day shipping, including access to a number of phenomenal shows at no extra cost. To make the sifting easier, here are our favorite shows currently streaming on Amazon Prime.
Home Theater

From the Roku Ultra to the Fire TV Cube, these are the best streaming devices

There are more options for media streamers than ever, so it’s more difficult to pick the best option. But that’s why we're here. Our curated list of the best streaming devices will get you online in no time.
Home Theater

No subscription, no problem. Free Spotify users can soon use Spotify Connect

Spotify Connect, which allows users to stream their favorite tunes to any Connect-enabled speaker, has long been one of the best premium-only features on the Swedish streaming service. Soon, free users will get it too.
Music

The best free music download sites that are totally legal

Finding music that is both free and legal to download can be difficult. We've handpicked a selection of the best free music download sites for you to legally download your next favorite album.
Music

It’s about damn time: Spotify is coming to Apple Watch

Spotify subscribers will soon be able to jam out to their favorite tunes on their favorite workout accessory, as the Swedish streaming service has begun beta testing its official Apple Watch app.
Home Theater

As Amazon turns up the volume on streaming, Spotify should shudder

Multiple players are all looking to capitalize on the popularity of streaming, but it has thus far proved nearly impossible to make a profit. Could major tech companies like Amazon be primed for a streaming take-over?
Music

Spotify is the best streaming service, but its competitors aren’t far behind

It can be hard to decide which music streaming service is for you, so we've picked out the individual strengths of the most popular services, aiming to make your decision a little easier.
Home Theater

Images found in iOS 12 beta reveal new details on next-generation AirPods 2

Apple plans to release new AirPods much the same as it does new iPhones, and a wireless charging case, water resistance, and better Siri integration are among the improvements we can expect in future models.
Music

Rapper Mac Miller died of accidental overdose, autopsy report finds

According to an autopsy report, rapper Mac Miller died September 7 at age 26 of a drug overdose, following a longtime struggle with substance abuse. Miller was scheduled to begin a nationwide tour in October.
Music

Tune in to the best internet radio stations for your listening pleasure

Even in the streaming era, radio stations get some of the best exclusives and curate some of the finest handpicked playlists around. Here are the best internet radio stations, for your listening pleasure.
Home Theater

Keep those albums sounding great by converting your vinyl to a digital format

There are all sorts of reasons for ripping records and storing them digitally, but what's the best way to do it? We cover the different types of equipment and software available for ripping records at any price in this guide.
Music

A wealth of rich tunes: Cash in with the best songs about money

There may not be as many songs about money as there are songs about love, but it's a close second. If you're looking for a skrilla-inspired playlist, check out our picks for the best songs about money.
Smart Home

How’s your Spanish, Alexa? Some Amazon Echo devices pick up a new language

Amazon's Alexa voice assistant and Echo devices are now available for customers in Mexico. Alexa has been customized for the Mexican market with local knowledge, a new voice, and support for the Spanish dialect spoken in Mexico.