There have been various changes that have been seen over the years in the music business. Earlier it was very common to see that music was bought by one person and then there was also a point when it was rented out. However, the line was first crossed when the first major music label was none other than Warner. As per the reports Recode had released recently, it is said that the company earns a lot more from the sales of the music.
As per the official announcement made by the company, it was stated that services like Apple Music and Spotify were the biggest sources of revenue which the company had earned during the year’s first quarter. This surpassed the both the digital download sales and the physical sales. This is the 1st time that the inflection point has been hit by any of the big music labels.
The first quarter numbers that the company revealed showed that the physical sales revenue dropped down by $6M. It also showed that by $17M the downloads revenue showed a dropand was down compared to last year. However for the quarter, the streaming service was up by $72M. The revenue earned by this service was considered to be massive in comparison to the other services that the company offered.
Even last year, the revenue that Warner had earned from the streaming services had exceeded which was seen by the company. However, the additional income that the company earned from the physical media showed that greater revenue was still being delivered even though that has changed now.
Currently there are 13 M subscribers for Apple Music and in the switch, a significant part could have been played by them. Another thing that would have been benefitted would have been the student deal that was revealed today which was half priced.