Warner Music Group CEO, Edgar Bronfman Jr, is full of praise for Apple – sparking fresh speculation iTunes streaming music services may be on the way in the latest financial call.
He was very backward in responding to questions on this, saying:
“Apple is not currently a retailer involved in an access or subscription model. I’d probably like not to speculate on what Apple’s plans are – it’s really interesting technology that it acquired in the Lala acquisition. That’s a question that Apple management should answer,” he wrote as reported here.
“I don’t think Apple’s really that clear to the market (on the subscription suggestion), so I wouldn’t suggest it will not have an impact, but I certainly won’t speculate what kind of impact it will have.
“We made great progress with Apple last year on variable pricing. It’s our hope that we can continue to make great progress. But I can ‘t say that there’s a specific intiaitive today with Apple,” he said.
He didn’t stop there. “The flight to iTunes and iPhone continues,” he says. “Apple (NSDQ: AAPL) has proved to be the most adept software and hardware manufacturer out there in delivering content to consumers in a seamless and very attractive consumer experience. No-one’s gotten very rich betting against Steve Jobs – and I don’t want to be the first to do it.”
Digital revenue was $199 million, or 30% of total revenue, up 8% sequentially from the first quarter of fiscal 2010, and up 15% from $173 million in the prior-year quarter. On a constant-currency basis, digital revenue grew 11% sequentially and was up 12% from the prior-year quarter.
Recorded Music digital revenue of $189 million grew 13.9% over the prior-year quarter, or 11.2% on a constant-currency basis, and represented 35.4% of total Recorded Music revenue, compared with 30.8% in the prior-year quarter. Domestic Recorded Music digital revenue amounted to $117 million, or 46.8% of total domestic Recorded Music revenue, compared with 41.0% in the prior-year quarter. Year-over-year digital revenue growth was driven by global strength from digital downloads.