WMG sets record with streaming revenue in Q1

Warner Music Group has become the first major record label to receive more revenue from music streaming than downloads, according to their first quarter report.

The main take-aways from the report were that total revenue is up 4% measuring with local currency or 13% on a constant-currency basis (as if exchange rates had remained constant); the Recorded Music revenue is up 5% (15% constant-currency) at $564 million, up from $535 million and Digital revenue overall is up 1% or 10% on a constant-currency basis. Digital revenue for Q1 2015 was $297 million, up from $295m. The growth in digital revenue is attributed to more streaming revenue which actually more than offset the continued decline in download revenue.

Warner Music Group’s net income is $19 million; in the same quarter in 2014 the major operated at a loss reporting $59 million in net losses.

"We experienced significant revenue growth this quarter across key segments of our business – in particular Recorded Music, across the U.S. and international and across digital and physical – capping off a strong first half of our fiscal year," said Stephen Cooper, Warner Music Group’s CEO in a statement. 

"Notably, in this quarter we saw continued growth in streaming revenue which surpassed download revenue for the first time in the history of our recorded music business," Cooper added. "Our commitment to being at the forefront of industry change as well as our ongoing investment in artist development is the foundation of our continued success."

The news follows the launch of Jay Z’s streaming service Tidal and precedes Apple's Beats music service.