By: Spacelab Research Staff
You know times are tough when people get excited that you posted a loss that wasn't as big as was expected. Warner Music posted its third quarter financials late last week, and the good news is that the news wasn't as bad as some people feared it would be.
In the slow growth curve that is digital music, Warner made some small gains in both digital and international sales. The online thing is admittedly taking longer to yield results for most players in the game, but everybody seems to be seeing steady growth, albeit slow growth. It's all about the positioning baby, putting the right elements in place to grow over time.
"As we transform the business to position it for future growth in an evolving industry, we remain focused on driving profitability and cash flow, while prudently managing capital and costs,” said Edgar Bronfman, Jr., Warner Music Group’s Chairman and CEO. Dear Prudence, won't you come out to play?
Warner saw its digital revenue grow 39.3% to $166 million. Licensing revenue grew 27%. CD sales fell again, this time by 5%. The decline on the whole CD package seems destined to continue sliding (for everyone) until somebody comes with more creative ideas than just slapping some songs on a disc and charging $15+ for it.
More facts in the ultra-exciting press release from Warner Music Group.