#Warner Music Group Sees Revenue, Income Climb After Streamers Hike Prices

Warner Music Group, home to the likes of Ed Sheeran, Dua Lipa and Cardi B, saw fourth quarter revenue and net income rise after music streaming services brought in long-anticipated subscription price hikes.

The major music label saw total revenue for the three months to Sept. 30 rise 6 percent to $1.58 billion, beating an analyst estimate by $20 million, while net income was up 3 percent to $154 million. The per-share earnings was 29 cents, which beat an analyst estimate by 4 cents.

WMG overall revenue was up year-on-year to $6.03 billion, the first time the major label’s yearly revenue eclipsed $6 billion.

Quarter recorded music revenue jumped 6 percent to $1.29 billion after WMG saw music streamers like Apple and Amazon raise subscription prices to allow the major label to renew its streaming contract deals with more upside earnings power for its artists.

“As the music ecosystem is recognizing the value of premium content and emerging markets continue to gain traction, our industry is healthy and growing. With these tailwinds at our back, we’ve been working hard to build a WMG that will excel in the music industry of tomorrow and look forward to bringing you incredible music in 2024 from our extraordinary artists and songwriters,” Robert Kyncl, CEO of WMG, said in a statement on Thursday morning.

Kyncl became head of the music label in Jan. 2023. The former YouTube chief business officer was key in bolstering YouTube’s business relationships with online creators and ensuring the video and music platform was a top platform for creator monetization.

WMG also saw growth in ad-supported revenue, in part following a renewal of its contract deal with TikTok.