Digital & Mobile, Music Business — May 14, 2015 at 1:10 am

Warner Music Group just made more money from streaming than downloads for the first time ever

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A report from Warner has highlighted how quickly the public have embraced music streaming services, with streaming revenue surpassing revenue from selling downloads for the fist time.

 

The landscape of the music industry is changing at a phenomenal rate. Whilst artists continue to take issue with the distribution of royalties from streaming services like Spotify and Deezer, Warner have reported significant increases in profit across the past quarter.

 

According to Warner Music Group CEO Stephen Cooper, the quarterly financial results show the label’s revenues grew 7 percent overall but the real news was that there was a 33% increase in streaming income, meaning  streamed music was more lucrative for the company than digital downloads for the first time.

 

The news comes just as the three big record labels in Sony, Universal and Warner Music Group urge Spotify and YouTube to hold off on the free music they allow their users to stream and, instead, focus more on paid subscriptions. Late last year Warner were able to strike a deal with SoundCloud over licensing rights to their music whilst Universal and Sony were unable to find agreement with the streaming site.

 

“The rate of this growth has made it abundantly clear that in years to come, streaming will be the way that most people enjoy music,” Cooper said. “We’ll continue to collaborate with our streaming partners to expand their businesses, and more importantly, to ensure that copyright owners, artists and songwriters receive appropriate value for their work.”

 

The question is now, just how much of that rhetoric trickles down in cash form to the people that are, you know, actually making the music that’s being streamed.