Digital download sales now make up 20% of Warner Music’s total revenue

“Warner Music Group Corp.’s fiscal third-quarter net loss narrowed despite continued struggles with the consumer shift toward digital music,” Shara Tibken reports for The Wall Street Journal.

“The record company reported a net loss of $9 million, or six cents a share, for the period ended June 30, compared with a net loss of $17 million, or 12 cents a share, a year earlier,” Tibken reports. “Revenue rose 5.5% to $848 million, but declined 1.1% in constant currency. Domestic revenue fell 6.5%, while international revenue increased 17%, or 3.6% on a constant-currency basis.”

“Within the recorded-music segment, digital revenue — which now makes up 23% of segment revenue and 20% of total revenue — jumped 39%,” Tibken reports.

“In an effort to adapt with consumers’ shift to digital music from physical CDs and better compete with Apple Inc.’s iTunes — which in April became the nation’s No.1 retailer of music, Warner and two other music-recording companies formed a partnership in April with News Corp.’s MySpace to offer the social-networking giant’s members a range of new music-listening and merchandising features,” Tibken reports.

Full article here.

[Thanks to MacDailyNews Reader “Chuckles the Microsoft CEO” for the heads up.]

Why does Warner feel the need to “compete” with Apple’s iTunes Store when Apple’s iTunes Store sells Warner music already? Abject fear. The headline says it all. Apple’s iTunes Store is responsible for at least 19.5% of that 20% of Warner’s total revenue. Steve Jobs is playing these fools like the fools they are. And, Edgar, from now on, don’t you call Steve anymore. Steve will call you when he wants something done.

20 Comments

  1. They would make tons of money if they would just embrace iTunes and advertise their music for it. They need to wake up and understand that digital music downloads are the future and as a bonus it is good for the environment with no packaging to go into the land fills.

  2. aka Christian makes a strong point

    Compare and contrast the movie and the music industries. Both suffer from piracy, but the movie industry keeps pushing up the physical quality of their product. This increases the size, making the product harder to download, as well as giving the people who care about such things a new, better product to buy, even if they’ve bought the older version already.

    Now, the music industry has stuck with the 16/44.1 CD forever and are too stupid to change. Most music now is recorded at 24/96 if not 24/192. Why hasn’t the music industry changed?

    BECAUSE THEY ARE TOO STUPID

    Google or wiki bit depth and sampling rate if you don’t know what the numbers I’m referring to mean.

  3. dave:

    not only is bit depth an issue, but given the facts behind the “loudness wars” using a good bit depth will only help so much…..

    just how dumb are these record execs anyway?

  4. @Shen:

    The dumbness of record execs has broken all the measuring instruments – they hit levels that went beyond dumbness.

    The instruments had to be re-calibrated down to 11….

  5. @Synthmeister

    “I still don’t understand why the record companies just don’t start their own online store with DRM-free music.

    Is setting up an online storefront that hard?”
    ——————

    Where have you been? The record companies have tried several times to do this themselves, all with the same lame results. And yes, it is very hard to get right,

    Today there is some news about them resurrecting “Total Music”. I predict epic FAIL

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