The way in which people are getting their music seems to be changing, as Warner Music has seen more revenue from streaming than they have from downloads.
Things have been changing in the music industry for a while, from cassette tapes to compact discs, to MP3 downloads and now streaming services. Keeping up with the times is important, and for the first time Warner Music has seen their revenue from streaming services beat out the revenue from downloaded music. With this, stores like the iTunes Store have seen a decrease in revenue, while users move to services like Spotify, Rdio, or Apple’s own upcoming streaming service.
During a recent earnings call, Warner Music CEO Stephen Cooper said:
“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. 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.”
Apple is rumored to be launching a music streaming service of their own in June, which is said to offer only a small selection of free music. For Apple, iTunes is a large revenue stream, and with the industry making changes, so does Apple.