• by Wayne Friedman , November 24, 2020

Revenues were at $1.13 billion -- up 0.2%, with net income virtually flat at $1 million (down from $91 million in the year-ago period).

Total recorded music revenues were up 0.5% to $958 million.

Warner -- as with other music companies -- is still reeling from declines in live music events due to COVID-19 closures. Amidst this disruption, revenues grew 9%.

Digital business at Warner Music now represents 70% of all its revenues, at $778 million. A 15% increase in digital's quarterly revenues follows a 9% gain in its third-quarter reporting period.

Future revenues will come from an expanded digital/streaming category. Macquarie Research writes: “Newer forms of entertainment like social media, video games, and interactive fitness are showing increased potential for licensed music revenues.”

Specifically, Macquarie touts the growth of the Peloton fitness brand, as well as new updated video-game platforms and the new Xbox Series X & PlayStation 5 consoles, as well as live in-game concerts.

It estimates that overall, this business could be worth around $100 million in business for Warner Music.

Warner had lower results in business from artistic services and expanded rights and licensing fees -- down 43% (to $98 million) and 5% (to $76 million) respectively.

The company says: “The decline in licensing revenue reflects a decrease in broadcast fees and synchronization revenue from lower advertising, television and film deal activity due to the impact of Covid.”