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