JWC Entertainment’s Post

Strong earning results from Warner Music Group today Quarterly net profit rose 14% on Streaming Growth Digital revenue and streaming revenue were up 4.7% and 5.5% respectively, as subscription revenue grew 7%. Topline Results: Total revenue 1% to $1.554 billion in the third fiscal quarter 2024 from $1.564 billion in the same period last year. Net income rose 14% to $141 million from $124 million in the third quarter 2023. Recorded music revenue fell by 2% to $1.251 billion from $1.282 billion in the third quarter 2023. Music publishing revenue rose 8% to $305 million from $283 million in the third quarter 2023.

In person vs digital revenues in the music industry Total streaming revenues (including both paid subscription and advertising-supported) grew 10.4% YoY to reach $19.3 billion in 2023 and accounted for more than two-thirds (67.3%) of the total global market. Physical revenues grew 13.4% YoY to $5.1 billion in 2023, while performance rights revenues rose by 9.5% YoY to $2.7 billion.

Great report below by the IFPI - Further evidence as why the market remains white-hot for investment in the music industry! 🎸 🎷 🎼 #musicbusiness #investment #streaming

Check out the Royalty Exchange article as it'll give you a pretty comprehensive overview of the music industry in 2024, highlighting its growth, driven primarily by streaming revenue, and the roles of major industry players like Universal, Sony and Warner. It also explores emerging trends like music royalty investments, rising global markets, and technology's role in shaping consumption patterns. While challenges like piracy persist, the future looks bright, with significant growth projections for both recorded music and publishing sectors. #Music #MusicRoyalties #Royalties #DSPs #Streaming #AppleMusic #Spotify #AmazonMusic #Revenue

Global recorded music revenues increased by 10.2% in 2023, reaching $28.6 billion. This growth was driven by a rise in subscription streaming revenues, which accounted for almost half of the market. Streaming, including paid subscriptions and advertising-supported services, contributed over two-thirds of the total market revenue. The number of paid music streaming subscriptions surpassed 500 million for the first time, with over 667 million paid subscription accounts globally. Physical sales and performance rights revenues also experienced growth. #IFPIGlobalMusicReport2024 #2024GlobalMusicReport #musicindustry #musicbusiness

The music industry experienced significant growth in 2023, with total revenues climbing to $28.6 billion, marking a 10% increase. The year saw over 500 million streaming subscribers, generating $19.3 billion in streaming revenue, which now represents 67% of worldwide music sales. For a deeper dive into these transformative trends, read the full IFPI report. #RoyaltyRevolution #MusicNews #MusicIndustry https://lnkd.in/eAmRJZrK

Reflections…. Discuss: Is music streaming actually a business, or is it just a social utility with bad economics for many of the participating stakeholders ? Points to consider: (1) I use the words “social utility” as a term of art and what I mean by this is, roughly, that music streaming services are not capitalist enterprises in the traditional sense because of their flawed economics. Rather they provide a useful service to the public, but at economics that do not make much sense absent a meaningful related revenue stream that cross-subsidises it (eg Amazon Prime; Apple devices etc). (2) Given the input costs of stand-alone music streaming services (copyrights; technology; personnel), is there actually a profit / return on investment to be made for the shareholders? Seems like a stretch these days. (3) Back when music streaming services were first gaining material traction (2007-10), major labels established fairly eye-watering percentage royalty agreements with the services: 55% pro rated by the licensors’ share of streaming. Services rather naively thought that the cost of publishing would never rise materially enough to damage their margin potential, so most swallowed these expensive deals. Given those publishing rates were around 5% for streaming in 2007 that was a very bad assumption to bet the farm on. With those publishing rates now around 17% (and upwards pressure continues), margin seems like a pot of gold at the end of a rainbow. Oops….. (4) I am being a little mischievous in posing this question, so don’t take it too seriously, but please do weigh in…

This highlights the inequalities and dynamics within the digital music streaming industry, including the impact of legislation, market share of streaming services, and the increasing popularity of streaming as a music consumption method. Many songs added to music streaming services daily and the popularity of streaming services compared to other forms of music consumption is high. Spotify currently leads the way in the music streaming market with a 30.5% share. Approximately 120,000 new songs are added to music streaming services each day, which is a significant increase from previous years. https://lnkd.in/dXBMWyQM

📢Breaking News! 📢 With prices on the rise and subscription options multiplying, music streamers in the US are feeling the pinch. 💸🎧🎵 The latest research from Bango reveals: 🌟66% of music streamers in the US can no longer afford all of their subscriptions  🌟60% are cutting at least one subscription to keep up with the escalating costs  🌟39% have opted to downgrade at least one subscription to a cheaper, ad-funded version to save on costs Despite these challenges, slashing prices isn't necessary for streaming services to retain and expand their customer base. Enter Super Bundling. 🚀 By teaming up with other subscription services, music platforms can offer users enhanced flexibility, access to exclusive deals, and simplified billing processes, ensuring a win-win for both users and providers. Take a closer look >> https://lnkd.in/dtWhDJia #subscriptions #music #streaming #technology

“Music recording companies have been urging streaming services to raise their subscription prices for some time now, and over the past 18 months, they’ve succeeded, with most of the major DSPs hiking prices. Some in the music industry have hinted these price hikes – typically an increase of $1 per month for individual subscriptions – isn’t quite enough to keep up with inflation. But Sony Music Group Chairman Rob Stringer is setting his sights on another monetization goal: Getting the music streaming services to start charging for their ad-supported subscription tiers.” “The value of the paid music product remains incredible. And we appreciate that our partners recognized that with price increases over the past year. However, it also highlights that the price gap between free and paid has gotten wider in mature markets. We hope that our partners close that gap by asking consumers using ad-supported services to additionally pay a modest fee.” “Besides Sony’s take on ad-supported streaming services, here are five other things we learned from Rob Stringer’s presentation at Sony’s business segment meeting:” #Sony #SonyMusic #Spotify #AppleMusic #YouTubeMusic #Deezer #Streaming #Songwriters #StreamingRoyalties #Royalties #MusicTracks #MusicStreams #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #DSPs #StreamingServices #StreamingMedia