Warner Music Group CEO Stephen Cooper said on Monday that money made from licensing tracks to streaming services like Spotify has exceeded money made from digital downloads sales.
“This is an important milestone, and impressive considering the strong double-digit growth is coming on top of an increasingly significant base,” Cooper said. “The rate of this growth has made it abundantly clear to us that in years to come, streaming will be the way that most people enjoy music.”
Streaming revenue grew by 33% in the second quarter, through services like Spotify and YouTube. This increase in revenue comes right at the time that these big music companies, including Warner, are pushing Spotify to pull the chord on its free streaming platforms. This move would see companies like Spotify move towards fully paid subscriptions with no ad-supported services available, similar to the Tidal business model.