August 10, 2012, 11:27 AM —
Financial reports from Warner Music Group shows streaming services are not cutting revenue from traditional digital outlets.
First reported by AllThingsD, the examination of Warner's financials show the increase in streaming revenue more than balanced out the decline in sales via physical media (CDs). Subscriptions services Spotify and Rhapsody, as well as Web radio outlets (Pandora, Sirius/XM, and Clear Channel) provided the revenue.
Royalties paid by YouTube for songs attached to videos added to the total. The $54 million was about eight percent of Warner's total revenue for the quarter. No details of how much revenue came from which source were released, but YouTube likely played a large role in the total.
What about the artists?
I wonder how much artists are really getting from these streaming services. It just can't be much at all.
Shmich on endadget.com
So once in a while I will buy a physical copy. Sometimes they have stuff you can’t download like photo books, trading cards, posters etc.
philipharodwarren on theverge.com
Yet, artists are only receiving .00001 or some ridiculous amount per play per song.
Dystopian on news.ycombinator.com
Its a good thing all those music executives put up such a fight, this is obviously going terribly.
quic on endadget.com
Huh, who’d have thought? Oh wait, nevermind, just everyone except for the music industry.
phillibuster on theverge.com
Spotify said they were on track to do close to $900 million in revenue this year. About $662 million was set to go to the record labels.
jeremymims on news.ycombinator.com
these companies are afraid artists will one day cut off the middle man and opt to go with these channels instead of signing exclusive contracts with them.
WeaponZero on endadget.com
It will be awesome when Spotify (or others) starts signing up bands as a "record label" itself, similar to Netflix produced shows. (Maybe they already do this?)
powerslave12r on news.ycombinator.com
i would give 10 dollars a month with a few free downloads( kind of how ZUNE use to be). Which would turn out to be 75 extra dollars they would get out of me annually
WestIndiesKING on endadget.com
How would you like to see the music business change next year?
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