NEW YORK (CelebrityAccess) — According to Warner, digital revenue increased 8.8% in the third quarter, while streaming revenue increased 9.5% year-over-year. Recorded Music streaming revenue increased by 6.3%, propelled by WMG’s release schedule and growth in ad-supported revenue as the industry recovered from slowdowns that weighed on previous quarters, the company said.
On the publishing side, streaming revenue increased by 27.1%, aided in part by one time cash infusions resulting from a ruling by the Copyright Royalty Board in Phonorecords III upholding higher percentage of revenue U.S. mechanical royalty rates.
Revenue increases in the quarter were also driven by growth in Recorded Music artist services and expanded-rights, licensing and physical revenue and Music Publishing mechanical revenue, Warner reported.
Music Publishing synchronization revenue remained flat during the third quarter, while music publishing performance revenue fell, which WMG attributed to the timing of payments from collection societies.
Recorded music operating income was $207 million, up from $166 million in Q3 2022, while music publishing operating income was $50 million, up by 17% year-over-year.
“Our Q3 results were driven by a wide diversity of music, and our strength came from many different territories, labels, and revenue lines. We succeeded with artists and songwriters across the spectrum of genres and generations, with both new releases and catalog projects,” said Robert Kyncl, CEO, Warner Music Group. “We expect our momentum to build, led by our extraordinary music and inventive campaigns, as well as improving macro and industry trends. We continue to invest in new creative talent, and evolve our expertise and resources, while collaborating with partners across the entertainment economy to drive long term success.”
“In the third quarter, we delivered solid growth across key metrics which give us increased confidence in our full-year margin and operating cash flow targets,” said Eric Levin, CFO, Warner Music Group. “The market’s adoption of subscription price increases, combined with the ongoing evolution of our key partnerships, gives us tremendous optimism for the future of streaming growth.”
