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.

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Introducing our guests: Christopher Widauer (Vienna State Opera)

The 6^th Vienna Music Business Research Days 2015 focus on “Financing Music in the Digital Age”. International experts and academics discuss new and alternative revenue sources for the music scene such as music streaming for the classic music business, crowdfunding and business angel funding.

Christopher Widauer, Head of Digital Development at the Vienna State Opera, will participate in the discussion on “The Economic Relevance of Classical Music Streaming” in Joseph Haydn-Hall of the University of Music and Performing Arts Vienna from 10:15-11:15 on October 1, 2015.

Christopher Widauer studies and works at Department of Philosophy, Salzburg and was then an arts manager in Germany and Austria, e.g. at Schubertiade Hohenems and as director of Styriarte Festival in Graz with Nikolaus Harnoncourt. From 1988-1991, he Developed a ticketing software that was installed in venues such as Viennese Konzerthaus Vienna, Salzburg Festival or Elbphilharmonie Hamburg. In 1989, he founded a puppet theatre for contemporary literature and music, touring internationally and playing at important festivals such as Biennale di Venezia, Bregenz, Lucerne, Kiev, Seoul, Bangkok, or Paris. From 2010-2013, he was Head of Theatre Department for Vienna’s City Councillor of Cultural Affairs. Since 2013, he is Head of Digital Development at Vienna State Opera, by developing and implementing a live broadcast programme that was launched in fall 2013.

 

 

Who Benefits from Spotify & Co.?

The recently published Ernst & Young study that was commissioned by the French music industry body SNEP highlights the revenue split of a premium subscription of EUR 9.99 Spotify, Deezer and other comparable music streaming services. The study’s results confirm the conclusions drawn in the blog series “Is Streaming the Next Big Thing?” that – beside the music consumers – the (major) record labels are the main beneficiaries of the current boom of music streaming. In contrast, the musicians get just a small piece of the streaming pie and the streaming services for their part have severe problems to establish a sustainable business model. In the following, I would like to highlight and to comment on the main results of the study.