Posts Tagged ‘music streaming economy


Music Majors in the Streaming Economy: Warner Music Group

In its last annual report Warner Music Group (WMG) exhibited a total revenue of US $3.58bn – the highest since the recorded music company was sold by Time-Warner to the Investor Group in 2003. Although overall costs also increased to US $3.15bn (WMG 2017: 38-39), the operating income is remarkably high with US $222m (WMG 2017: 40) especially compared to the disastrous results of the early 2000 years with annual losses of about 1 billion US$. The main driver of the revenue growth is the music streaming boom. In the recorded music segment streaming revenue increased by US $434m to US 1.34bn in the fiscal year ending on September 30, 2017. The music publishing segment contributed a further increase of US $58m of streaming revenue (WMG 2017: 36). Thus, WMG earned almost US $500m more with music streaming in 2017 compared to 2016. The further analysis highlights how the music major’s business model has shifted to the music streaming economy.

Continue reading ‘Music Majors in the Streaming Economy: Warner Music Group’


Music Business Research 2017 – in retrospective

Dear readers of music business research blog,

The music streaming boom dominated 2017. Market statistics highlight that music streaming revenue has become the most important income stream for the phonographic industry. The US figures for 2016 highlight a tremendous shift from selling music (CDs and downloads) to accessing music (by streaming services). In the US, music consumers paid for the first time more for music access by ad-supported and paid streaming services (US$ 3.9bn) than for CDs, music downloads and ringtones (US$ 3.5bn). In the UK, the massive growth of music streaming revenue also increased overall recorded music sales in 2016. Gains of £103m in the music streaming segment, thus, compensated not just for the loss of £5.8m of physical sales, but also for the £56m decrease in download sales in a year-to-year comparison, as a long-term analysis of the UK recording sales indicates. We can, thus, expect a further massive growth of music streaming revenue in 2017 also on markets with a still strong physical segment such as Germany.

Continue reading ‘Music Business Research 2017 – in retrospective’


The UK Recorded Music Market in a Long-Term Perspective, 1975-2016

The UK recorded music industry body BPI (British Phonographic Industry) reported a remarkable increase of recorded music sales from 2015 to 2016. According to BPI the growth was mainly driven by music streaming revenue, which increased by 61.0 per cent in a year-to-year comparison. Thus, as BPI (2017) points out, “(…) streaming accounted for 30 per cent of overall label revenues in 2016 (compared to physical at 32 per cent).  Such a rate of growth will undoubtedly see the format overtake physical to become the leading contributor to label revenues in 2017.”

The sales trend, however, indicates that the UK is on the way to a music streaming economy – as the US market, a fact I have highlighted in an earlier blog post. In the following long-term analysis of the UK recorded music market I am highlighting not just the recent recovery of UK’s recorded music sales in the past few years, but also the seemingly irresistible boom of the recorded music market since the mid-1970s and the tremendous sales decline in the 2000s.

Continue reading ‘The UK Recorded Music Market in a Long-Term Perspective, 1975-2016’

March 2018
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