Tag Archives: music making
Well what a surprise that record labels are feeling the pinch on ringtone sales…maybe they should consider the ringtone model a little more carefully, with fans creating ringtone content that is remixes of those fans favorite artists…oh I guess that’s what my company does! Warner, EMI, Universal Music and Sony, feel free to get in touch!
Major label Warner Music Group’s digital revenues grew by just 1.6% in Q4 last year, thanks to a slide in ringtone sales.
Warner Music Group reported its latest quarterly results yesterday, and they included yet more proof that the ringtones market has declined faster than expected.
WMG reported digital revenues of $187 million for the quarter, up just 1.6% year-on-year. “Our revenue growth in downloads and streaming services was more than offset by ongoing declines in ringtone revenue,” said chairman and CEO Edgar Bronfman Jr.
However, he said WMG is looking forward to new devices and digital services spurring renewed growth in this aspect of its business going forward.
“Digital innovation will evolve rapidly on many levels, including cloud-based music services, tablet launches, bundles subscription distribution, and connected devices,” said Bronfman.
“I think you’re going to see, I hope, very significant expansion of streaming services in 2011, and the introduction, I hope, of some very significant cloud-based services also in 2011.”
Bronfman was also asked directly about streaming music service Spotify, and while he batted back a question about whether WMG is any nearer to licensing the service in the US, he had warm words for its impact in Europe.
“We do see a very real growth from Spotify and we do see Spotify and services like Spotify as being ever more meaningful to our results, and I think you’ll be able to see that in our fiscal year 2011 and as the calendar year proceeds beyond that,” he said.
WMG’s overall revenues fell 14% year-on-year to $789 million in Q4, so despite digital’s sluggish growth, it now makes up 23.7% of the company’s total sales.
Hypebot’s Bruce Houghton, a frequent contributor to MIDEMBlog, shares the prevailing pre-MIDEM mood: when will things take off at last…?!
As I pack my bags to attend MIDEM, I do so with a touch of apprehension because, while so much in the music industry has changed, so much remains the same:
- Overall music sales are a fraction of what they were, but strong new sources of income have yet to emerge.
- The same major labels still dominate most sales and airplay charts.
- While new faces fill the digital slots, the senior executive suites at those majors remain controlled by men who have a proven resistance to real change.
- Few strong new independent labels have emerged to challenge this old guard.
- Even if Spotify were to use MidemNet to announce a U.S. launch, rightsholders stalled for far too long. And too many other worthy music services remain in an ill-defined line waiting for licencing.
- In most countries, copyright laws are still unequipped to handle an age of digital music creation and consumption.