An Ed Sheeran stream should earn more than the sound of rainfall, says Warner boss
completemusicupdate.comWarner Music CEO Robert Kyncl has echoed comments by his Universal counterpart Lucian Grainge on the need to restructure the way streaming royalties are paid out.
Speaking on the major label’s Q2 earning’s call yesterday, he said that “it can’t be that [an] Ed Sheeran stream is worth exactly the same thing than a stream of rain falling on the roof”.The former YouTube exec’s comments came as he announced disappointing results for the record label, with revenues showing almost no growth year-on-year.
Following this, the company’s share price fell almost 10%.Kyncl discussed the current streaming model in response to a question from Deutsche Bank analyst Benjamin Black, who specifically raised Universal’s recent statements on the need to restructure how pay outs are made.
In response, the Warner boss, like much of the music industry, called for price rises in subscription streaming, before dwelling on the sound of rain.“I am convinced and various numbers back up that music is significantly undervalued”, said Kyncl.
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