Wednesday, February 15, 2006
Warner Music Group first quarter earnings rose sharply mostly from growth in digital music sales offsetting falling CD sales. Warner Music sells digital music to several online services including Apple’s iTunes at wholesale. The company’s first-quarter revenue from digital music sales doubled to US$69 million, accounting for 7% of overall revenue. Madonna, Green Day, and James Blunt are signed to subsidiary labels of Warner.
Warner Music has undergone restructuring after being sold in 2004 by former parent company Time Warner. Cutting costs, exploiting current assets, and digital music has been the company’s focus since going public in May.