Digital technology is transforming industries, and one example of this can be seen in Warner Music Group’s fiscal first quarter 2006 financial results.
The music publishing giant reported significant gains in digital revenue, raking in $69 million compared with $25 million for the same period in the previous year. But, despite such surging digital sales, the company reported flat overall revenues over the same period.
The results signify the extent to which digital music has displaced traditional music formats and suggest that the company will look to invest even more in digital technology as the medium through which it will deliver its music.
Commenting on the results, Warner’s CEO, Edgar Bronfman, said, This report demonstrates that we are transforming our vision into results. Warner Music Group is building on its strong 2005 performance creating sustained growth of shareholder value. Our intense focus on and investment in the digital music business yielded dramatic growth in digital revenue, which was a major contributor to gains in total worldwide recorded music performance on a constant-currency basis.