Warner Music slows while iTunes grows

Revenue from digital sales of recorded music grew just 3.7 percent to $169 million. That’s a slower pace than the 4.5 percent growth posted a year ago and 39 percent growth two years earlier.

via Warner Music CEO looks `beyond iTunes’ amid losses – Yahoo! Finance.

For the record, iTunes did grow at 35% in the quarter that Warner Music grew digital sales by 39% two years ago.

But the two diverged a year ago with 17% iTunes vs. WMG’s 4.5% and this past quarter iTunes grew at 27% vs. 3.7%.

Gives us an idea of how much Apps have swelled iTunes’ top line.

  • RattyUK

    Bronfman has never been an Apple fan. He's planning to get into bed with Google… Actually he's planning to get into bed with anybody but Apple. He's full of hate.

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  • Tom Ross

    I still think the price hike to $1.29 was a mistake for the music labels… The only reason Steve agreed to that was because he knew that iTunes is about more than music now, and if the songs are too pricey, customers will buy a game or an ebook or a video instead. Warner is losing out in direct competition against other forms of entertainment.

  • Whenever I look for a song and it's $1.29 I hesitate before buying it, often not buying at all. $ 0.99 is a far more casual purchase and I have bought a lot more music at that price. Indeed, I think I have only bought a couple of songs at $1.29 while I've purchased hundreds at $0.99.

    Overall, I feel an electronic product should be significantly cheaper than a physical one, and at $1.29 a song, albums are priced at approximately the same as their physical counterparts, and they no longer seem like a "deal".