Warner Music's revenue falls in 2010

Posted by Martyn Hopkins

Warner Music Group, one of the big four record labels, has reported a decrease in revenue of 14 per cent year on year in the three months to the end of December.

There was a drop in digital revenue, as this fell by five per cent sequentially from the three-month period to September.

Operating income also took a steep decline as it went from $47 million (£29 million) to only $27 million year on year.

All of this information does not bode well for the music industry as it could point to the continuing downward trend in the business.

Edgar Bronfman, chairman and chief executive officer of the group, said: "We're confident that our disciplined A&R investments, successful revenue diversification and innovative digital strategies will drive [our] long-term growth."

He added a competitive release schedule had hindered its progress in the first quarter.

The label currently represents acts such as Seal, Neil Young and Michael Buble.

Product Category: Music Industry