![]() ![]() Digital music sales, driven by streaming, have been growing in the high-to-mid teens over the last three years. Digital sales make up a growing majority of the company’s topline and are this music conglomerates strongest growth driver. Warner Music has effectively transitioned to the digitalizing music landscape. Streaming revenues grew by 26% in the first half of 2019 and are expected to continue at this rapid rate of expansion. The music industry has been growing fast with streaming making up 80% of its annual revenue, according to RIAA Music Revenues Report. More and more people are subscribing to these services giving customers virtually every song available at their fingertips. While companies like Spotify SPOT, Apple Music AAPL, Amazon Music AMZN, YouTube Music GOOGL, and a slew of others storm the streaming space, record labels like Warner can sit back and enjoy the profits of this growing service. Warner Music Group is one such beneficiary and just filed documentation to go public on Thursday February 6 th, under the proposed ticker: WMG. One would think that this would deteriorate record labels profitability, but, in actuality, this has been boosting toplines and expanding margins for those labels savvy enough to evolve with the industry. ![]() The days of physical records and CDs dominating this auditory medium are now over. The world of music is digitalizing fast and is controlled today by music streaming services.
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