Blog Post

The Revival Of Warner Music

Edgar Bronfman is finally getting some media and analyst love, for reviving Warner Music Group, on the back of digital music. What analysts really care about is how fast digital music sales are growing. UMG and SonyBMG still dominate the overall album market in the U.S., but Warner has 24.9% of the current digital album market this year, and its share is growing faster than its peers’, according to Nielsen SoundScan.
One of the ways Warner has done that is by selling “bundled” albums on iTunes, like the Red Hot Chili Peppers’ forthcoming Stadium Arcadium. Warner says half of its digital revenues come from selling music to mobile-phone users. That includes ringtones, which in turn are driving online and physical album sales.
Also read this B2.0 story: “Warner Music, the Remix“: Warner teamed up with France Telecom and other carriers to release a ringtone of the Madonna single “Hung Up” a month before the song was released. The impact was swift: In France, for instance, so many fans downloaded the 20-second tune to their phones that DJs, unable to get their hands on the CD itself, began broadcasting the ringtone on radio. The ringtone release also helped draw in a younger audience.