Warner Music Group has seen its lucrative music publishing unit, featuring the catalogues of billion-streamers Ed Sheeran, Bruno Mars, and Cardi B, grow revenue an impressive 23.9 per cent.
Fiscal fourth quarter revenue for the entire company, which includes recorded works from Ed Sheeran, Dua Lipa, Lizzo, and Jack Harlow, grew 8.8 per cent to $2.26 billion.
Digital revenue grew 6.8 per cent across recorded music and music publishing.
Outgoing Warner Music Group CEO Stephen Cooper told analysts he welcomed music subscription services raising their monthly rates.
“Making these announcements in the current economic environment shows that music subscription services offer amazing value to consumers,” Cooper said, noting Spotify is expected to follow Apple Music and Deezer in bumping up its pricing next year.
Cooper countered the idea that these streaming services mean major labels, such as Warner, take a smaller cut of the pie.
“While distribution has been democratised, talent never will be,” Cooper said.
“Genuine talent is rare and difficult to find and discovery is just the beginning. True long term success requires significant resources, including financial investment, global infrastructure, creative expertise and the skills to navigate the changing tech landscape.
“Against the backdrop of a challenging macro environment, we once again proved music’s resilience, with new commercial opportunities emerging all the time. We’re very well positioned for long-term creative success, and continued top and bottom-line growth.”
Robert Kyncl joins as WMG’s new CEO on January 1, fresh from his previous role as chief business officer of YouTube.
