Seeing Declines in Record Label Revenues

I just read an article provided by HypeBot.com informing the general public of Warner Music Group’s rapid decline in revenue over the past year. This is exactly what we’ve been expecting and all of you independent artists out there should be excited to see this fall continue until these major labels are no more. Here are the projected numbers for the end of the third quarter:

  • Digital revenue was $179 million, 27% of total revenue but up just 2% from $175 million in the prior year quarter and down 10% sequentially from the second quarter of fiscal 2010.
  • Operating loss was $1 million compared to operating income of $25 million in the prior-year quarter.
  • Operating income before depreciation and amortization (OIBDA) was down 29% to $64 million from $90 million in the prior-year quarter.

This is a great thing for music as a whole, driving down the main stream nonsense to help push creativity and independence in the music world. People are becoming more and more prone to purchasing music digitally along with hearing new things that no one has heard, so they can share the music they find with others through the seas of social networks online. It’s not considered “cool” anymore to have top 40 hits on your CD player when you’re hearing on mainstream radio all the time. The labels don’t have enough talent and people are beginning to realize this everyday which will continue to fuel their demise.

By: Mark G. Valente | Online Marketing Director | @MarkwithMWL | Music Without Labels & Beat-Play, LLC

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2 responses to “Seeing Declines in Record Label Revenues

  1. It is definitely a step in the right direction for creativity and independence in the music industry. But it’s whether or not artists will be able to survive and make a living that still remains to be seen. A better formula for all parties is what is required – the indie label Champion Records seem to be getting things right. http://www.championrecords.co.uk/ Is this a sign that indie labels will re-emerge?

    • Well in this world of iphones and one-touch access, it’s going to be all about the access for the indie labels as well. They will need 1 place, or 1 platform online, from which all the fans can access all the indie label and indie artist music. That’s the only way to really reach the full potential of indie promotion. 1,000 indie labels will always be stronger than 1 alone. We believe Beat-Play will serve as the perfect platform for this, without taking any control or limiting the labels or artists in any way, even allowing artists to set their own prices for their music or ad space, something no other music site allows at all right now. Every song on iTunes has to be $.99. That’s one of the biggest problems right now with music online…control. We believe that control belongs in the hands of the artists, producers and indie labels. Check out our about us vid to see what we’re about and how we shift the model to make it work in favor of the people who matter the most. Thanks for the comment!

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