The recorded music business isn’t so terrible after all. Warner Music Group, the only major record company based in the US, reported that total revenues were up 3% in its fiscal Q1 (October-December), with digital revenues now accounting for 20% of the total.
“We are pleased to have delivered stable revenue and OIBDA in our core Recorded Music and Music Publishing businesses despite ongoing recorded music industry pressures and macroeconomic headwinds,” said CEO Edgar Bronfman Jr. “Our goals remain focused on delivering strong returns on A&R investments while we develop new business models, diversify our revenue mix and fortify our digital leadership position,” he added.
Total revenues for WMG grew 3% in the quarter to $918 million. Digital revenues were $184 million of that, up 8% from a year earlier.
Operating income before depreciation and amortization was up 5% to $112 million.
RBR-TVBR observation: Not so terrible for a quarter still dealing with a worldwide recession. And yet the record labels continue to cry that they need to have Congress change the law so they can collect royalty fees from radio stations.