Warner Music Group achieves streaming music milestone
All signs point to streaming as a long-term revolution in consumption of music across the globe, and this week the industry had some positive news to revel over. After a rocky wave of debate around the streaming market and its ‘big-three’ competitors, Warner Music Group this week announced that for the first time, the label’s recorded music division garnered more revenue from streaming than digital downloads. For its music publishing division, this played to the tune of a $1 million increase in digital revenue. Of the three major labels, Warner has been the most relaxed over the ‘Freemium’ model of streaming currently championed by Spotify, with its CE) Stephen Cooper publicly alluding to a focus on working with digital partners to speed the migration from free usage to paid subscribers.
It’s good news for the likes of Spotify at a time of mounting pressure and increased competition from TIDAL and the impending launch of Apple’s own streaming platform. While Spotify has come under increased pressure to part with its ‘Freemium’ model, which accounts for around three-quarters of its user base, royalty statements reported that TIDAL may actually be able to trump payouts to artists in the wake of its hit-and-miss launch in the market place. Added to increased losses over the last two years for Spotify, the formerly one-horse race has continued to garner attention from far outside the music industry. The revolution will be streamed, but it’s still up for discussion as to who will lead the charge.
Via: Billboard Biz