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Summary:

Just over half of Atlantic Records’ music sales came from digital in Q3, making the Warner Music Group (NYSE: WMG) label the first to see MP…

imageJust over half of Atlantic Records’ music sales came from digital in Q3, making the Warner Music Group (NYSE: WMG) label the first to see MP3s outpace CDs, NYT reports. But that noteworthy milestone is set against the problem of shrinking music sales and the inability of digital sales to replace the lost revenues associated with physical discs. Citing a study from Forrester Research, domestic recorded music revenues will fall 8.9 percent to $9.2 billion in 2013 from $10.1 billion this year. Sales were $14.6 billion eight years ago, according to the Recording Industry Association of America.

So far, record companies are trying to grow revenues by expanding their reach in concert tours and artist merchandising deals. Labels are also spending less money on marketing their artists. As for wringing dollars out of digital, Atlantic has been particularly aggressive about selling ringtones and ringbacks, tapping satellite radio, while also relying on iTunes and the burgeoning popularity of subscription services. Atlantic’s focus on those areas helped parent WMG post a 28 percent rise in Q3 digital revs.

Photo Credit: Jason Mraz by macinate

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  1. Rap Beats Charter Wednesday, November 26, 2008

    they had some hits Atlantic this year!. i wonder what changes will happen in the new year and if warner can put it together and make some real sustainable momentum – in all genres, Rock, Hip Hop, Rap, Pop etc…

  2. AWESOME…Pat Yourselves on the back for that guys you REALLY have change the world of music for good…..HAHAHAHAH
    Overpaying for a horrible lossy format, controlled by someone who types words on a keyboard, make's Paying 20.oo bucks for a product that you can produce on your own with ten time the ARTISTIC INTEGRITY AND TALENT, for 20 cents a pop, with better fidelity seem a paltry price to pay, but for the content that most of the iPod Isolationist generation pays for a haorrible, and extremely Cheap format is pretty fair. Atlantic Records…The Nobel Prize for self aggrandizing and swindling the gullible is in the bag this year!
    Keep on Truckin' you Should go into production of Virtual Bridges for the Highway cepartment!

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