Music streaming has powered Warner Music Group (WMG) earnings past $1.5 billion for the fiscal year to date.
The company reported its fiscal Q3 results showing that it brought in $1.579 billion from music streaming, up 24.6% year-on-year. In Q3 alone, streaming revenues were up 20.5% to $540 million.
Revenue grew 10.4% to $1.058 billion in Q3; for the nine months, it was up 13% to $3.351 billion. Growth in recorded music digital, licensing and artist services as well as music publishing digital and sync revenue were partially offset by a decline in physical revenue and Warner Chappell’s mechanical revenue.
Digital revenue grew 12.5%, and represented 61.2% of total revenue, compared to 60.1% in the prior-year quarter.
“Our third-quarter results are proof of our continued momentum,” said Steve Cooper, Warner Music Group’s CEO. “To say that streaming is responsible for the recovery of our business is an oversimplification. Without the talent and creativity of our artists and songwriters, and all of the investment and expertise that we put behind them, there would be no growth.”
Recorded Music revenue grew 13.8% to $913m in Q3. This included a $59 million (£48.45m) increase related to the acquisition of EMP.
Music publishing revenue declined 7.5%, as a result of accounting changes and loss of administration rights in certain catalogues.
On the earnings call, Cooper noted that the scale of music being added to DSPs – 40,000 tracks a day – was making it harder to cut through.
“We value our relationships with streaming services and there is no question they provided strong digital platforms that helps music travel around the world faster than ever,” he said. “But the sheer volume of music being released on these platforms is actually making it harder for great artists and songwriters to get noticed.”
Edited from Warner Music Group