'Twas the Lizzo IPO... Warner Music went public back in June as the first pure-play music stock of the record label "three-oply": Warner Music, Universal Music, and Sony Music (say "music" again). Warner signs artists, then markets and monetizes their tunes. Stars include: Lizzo, Ed Sheeran, and Cardi B.
- Concerts aren't happening, so Warner lost on tour services and merch. Buuuut: Warner's full-year earnings were essentially the same as its record-breaking 2019.
- Music streaming made up for it. Warner negotiates with streamers to get paid on listens. Digital sales were up 15% last quarter on the stream-palooza, offsetting losses from the pandemic-hit side of its business.
When Bruno's on pandemic vacay... He's not dropping that 24K Magic. Before going public, Warner noted that the "absence of superstar releases" was one of the biggest risks to its biz. Its roster is stocked with Led Zeppelin and Madonna tunes, but the big money comes from new albums. Fresh hits from artists like Dua Lipa made up for the silence from stars like Bruno Mars.
Warner reflects the winners/losers of the pandemic... The Spotify streaming side of Warner's biz is thriving, just like Spotify — the live touring side of the business is hurting, just like Live Nation. Warner's partnerships with pandemic thrivers like Facebook, TikTok, and Snap are growing sales even faster than subscription streaming. Warner also hinted it's exploring new opportunities with pandemic winners like Twitch (live-streamed concerts) and Peloton (licensing).