Record Companies Aren't Safe From the Coronavirus Economic Fallout

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Record companies aren’t as safe from the economic fallout of the coronavirus pandemic as they might hope, even if their product is mainly digital, says Tim Ingham of musicbizworld

“The business has started to be affected by delays in new music releases, interruptions in supply chains for CDs and other physical music media, and a decrease in music licensing.”that record companies make all of their money from that which gives them their name — records — being sold or streamed.

To get a handle on how much these areas matter to major record companies, I’ve taken a look through the . WMG is unique in music as it publicly reports its quarterly figures, but also doesn’t have a parent company , meaning more detail is available in its numbers.

For a worst-case hypothesis, let’s reduce Warner’s physical income by 60 percent in our Q1 2019 calculation, and the company’s “licensing” income by 70 percent. Already, that would pull down WMG’s quarterly recorded-music total by $128 million , to $805 million — with physical’s three-month tally falling to $52 million and licensing falling to $22 million.

In Q1 2019, Warner’s “Artist Services And Expanded Rights” revenues were $134 million, giving us a rounded per-month average of $45 million.

Still, the bulk of the majors labels’ future fortunes rests on streaming. As we stand, COVID-19 appears to have snipped somewhere between five percent and 10 percent off expected audio streaming volume on services like Spotify, both in the

 

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Shitty journalists aren't either...your days may be numbered RS

did you know tom mallicoat wrote Talladega nights.

Hopefully RollingStone isn’t either

No shit

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