Warner Music Group is bending, not breaking: Analysis
Analyzing five key questions answered by Warner Music Group’s 2020 fourth fiscal quarter earnings report.
in the quarter, but not a deficit, either. Brick-and-mortar retail stores’ sales rebounded in the quarter but faced more business closures as positive tests and hospitalizations are rising globally. Advertising could drop too, leaving subscription revenue labels’ and publishers’ best hope for the next few quarters.
Here are five key questions answered by WMGs’ fourth fiscal quarter earnings report:What went well?While some numbers are evidence that Warner has struggled in the pandemic — merch, touring, synch licenses — there were a few bright spots. Digital revenue increased 11% and, if artist services and licensing revenues were removed, overall revenue grew 9%. Retail store re-openings lifted CD and LP sales. Publishing digital revenue grew 30% in the quarter. Synch revenue has shown “some recovery since fiscal Q3 with a gradual resumption of film and television production,” said
Stephen Cooper, CEO of WMG. Looking back at the full year, Warner's streaming revenue grew 13% to $2.4 billion.Warner Music Taps Asia Chief to Run International OperationsHow is WMG’s liquidity?Warner says its primary sources of liquidity can support its existing operations for more than 12 months after Sept. 30, 2020. That paints a dour picture, though. Warner's cash and equivalents fell 11% from $619 million to $553 million. But it has $390 million in unused credit as a buffer. And most importantly, consumer spending and brand advertising, which determine performance revenue, are both improving. headtopics.com
How much money is Warner saving during the pandemic?The company has not needed to drastically cut costs like concert promoters or agencies have. It has also not announced any measures to trim fat or restructure for a post-pandemic world.Eric Levin, CFO, mentioned “cost containment initiates [that] will start in 2021 and expand over time” but was not specific. Before the pandemic, Warner began upgrading its technology and financing infrastructure with an annual savings of $35 million to $40 million. Slowed by pandemic-related delays, the transformation is now expected to be completed within a year.
Where does Warner — and the industry— go after streaming?Start with any format and there’s always a next thing: the LP, the cassette, the CD, the download and the subscription service. What’s next? Social media, gaming and live-streaming already provide Warner with “ meaningful nine-figure royalties” and are growing faster than subscription services, said Cooper. Also, WMG is seeing “explosive activity” in at-home fitness services, such as Peloton, which license music for use in their workouts.
Ex-TikTok CEO Kevin Mayer Lands at Warner Music Parent Access IndustriesWhat are Warner’s plans for live-streaming and virtual reality concerts in 2021 and beyond?As the pandemic changes how people spend time at home versus in public, live-streaming and VR companies are racing to build a market that would otherwise have matured some number of years in the future. Warner is treating online concerts as more than a dalliance during forced lockdowns. Cooper said the ways music is distributed will look different “for the foreseeable future” regardless of a vaccine announcement. “Our intent is to continue to invest in livestreaming, live concerts, VR concerts and continue to support not only new habits but the marketplace for this sort of entertainment at home,” he said.
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Raskin: I am not going to lose my son in 2020 and country in 2021
Democratic Rep. Jamie Raskin said Sunday that he's 'not going to lose my son at the end of 2020 and lose my country and my republic in 2021,' in a moving message that comes as he grapples with his family's loss and his role as the House's lead impeachment manager in President Donald Trump's second impeachment.
The melodic method detects affected rap music formed by dependents that are under average rap music made commonly. One cannot consider this common. Only a few producers like myself, form hit records. Zoom soon and deal for a larger atmosphere of rap music. Spreaded my hihat formation over a wider ground; however, quarterly the music is shorted to the producers that have clearer definitions of my hihats, so think long term, for they're washed up.
There's no constructive way to apply music progress with locked settings. CPU devices have taken the spotlight, synthesizer keyboards are subsidiary? Or is it that producers have lost their way? These producers today don't have attitude, instead they have melody. Sneaks have scurried off with my music, and now everyone sounds like a bad version of my hihat formation.
These popular artist are not sharpening their skills, in fact, they're following my leads, formation of song, and fills. Then, making a subsidized track on whatever program they're using. Sneaking title tracks from my Yahama and using it in their everyday terminology. Trill life music. Hiphop sneaks off with my memory card from my Yahama and I haven't heard a hit since.
The hiphop financial budgets are found on the purposes of my top track progress. Change the image of hiphop. I know the word is vibing. This is what the community is saying, experiment with the population that forms this world of rap. The samples are quantized on my formation due to the engineers that grid the FL studio screen. I want the industry to take notice to my talents and skills, whether or not the producers today put away the laptops or not.
I find myself no longer producing being that I study for school everyday. I haven't taken on a different life I'm still that super producer, indeed, Eshaboi is going nowhere trying to get somewhere with my beats and raps. I am incredibly talented and collaborative. All I see is some group of compters that have something that doesn't belong to them, teaching the artist and keeping them relevant to the YouTube culture. It's time to do our best work! I miss hiphop.
Time is quality. Let's get the net present value of these tangible products. The loyalty is at a all time low. Are these people safe with laptops and tablets? Have anyone made any approach to these issues. Fighting to be heard not tumbled downhill. Eshaboi brings value to hiphop and r&b artist at the top of the charts inspiration. My crafted skills have been surpassed and copyrighted. The tracks I created are being examined and sampled right under the wishes.
Let's keep it real. The budget isn't there, but these artist are update with music failing to the Yahama Motif every time every track the motif cannot be beaten. Let's change the outfit of hiphop. This machine is giving them ideas. The grass is green under me. Don't know any other way to rush this message, however, the quick and easy producers are sampling from my complexes I perform on my keyboard.
The hiphop music today is what I call perfect. Its automated and integrated exactly on a grid measure. Very amateurish, in which is the reason why the music is made so fast. I founded the hihat formation to specifically be for my tracks. Need references for label! soooo