Warner Music: Most Revenue Comes From Streaming

Warner Music Group Corp. on Friday reported its profit fell 39% in the second quarter of the year, though revenue surged as streaming became the top contributor to the top line.

“We are now the first major music company to report that streaming is the largest source of revenue in our recorded music business, surpassing our revenue from physical formats,” Chief Executive Stephen Cooper said. “And this new milestone comes only four quarters after our streaming revenue first topped our download revenue.”

Warner, the third-largest music company behind Vivendi SA’s Universal Music Group and Sony Corp.’s Sony Music Entertainment, reported streaming revenue surpassed download revenue for the first time during the March quarter last year. For the latest quarter, digital revenue climbed 20%, or 23% on a constant-currency basis, reflecting the shift to streaming revenue.

On a call with investors Friday, Mr. Cooper said Warner Music’s streaming revenue on recorded music rose 59% in the quarter, according to The Wall Street Journal.