Warner Music's Q3 2024 Streaming Revenue Grows 2% as Execs Push for Wholesale Price Increases
Warner Music Group reported modest streaming revenue growth in Q3 2024, with overall streaming revenue increasing by 1% year-over-year to $1.05 billion. The company's digital revenue saw a slight decline of 0.2% during this period.
Key financial highlights:
- Recorded subscription revenue: Up 5% YoY to $645 million
- Ad-supported revenue: Down 5% YoY to $221 million
- Publishing streaming revenue: Declined 4% YoY to $182 million
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CEO Robert Kyncl emphasized growth opportunities through:
- Wholesale price increases
- Subscriber growth in mature markets
- Reduced discounts on family plans
- New superfan initiatives
Additional performance metrics:
- Physical sales (vinyl and CDs): Increased from $130M to $134M
- U.S. recorded revenue: Up 1% YoY ($2.21B total)
- International recorded revenue: Up 9% YoY ($3.01B)
The company's fiscal year performance showed stronger growth:
- 12-month subscription revenue: Up 8% YoY to $2.54B
- Ad-supported revenue: Up 3% YoY to $901M
- Publishing streaming revenue: Up 15% YoY to $752M
WMG stock responded negatively to the earnings report, dropping 9.24% to $30.56 per share, despite announcing a new $100 million buyback program.
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