Warner Music CFO Expects Streaming Services to Raise Prices
Warner Music Chief Financial Officer Eric Levin expects it will cost more to stream music, referring to “an enormous gap between the monetization of eyeballs and the monetization of ears.” He sees the gap narrowing with increasing adoption of premium…
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features, such as Amazon Music HD and higher subscription prices. “Ultimately, we think that all of the services over time will increase prices,” and “we encourage them,” he said on the company's fiscal Q1 call Monday. “Our expectations every day grow that the services will begin to raise prices for functionality and features.” In the quarter ended Dec. 31, "robust" digital sales in the recorded music and music publishing segments drove Warner Music revenue up 6.3% year on year to $1.3 billion. They were offset by COVID-19-related declines in physical recorded music, artist services, expanded-rights and performance revenue. Digital revenue grew 17% for 62% of total revenue, up from 56%. The music label is taking advantage of live streaming to promote artists via digital partners that are operating successfully during the pandemic, said CEO Steve Cooper.