Bronfman warned that if royalty fees remained “far below what their true value is”, then Warner would no longer license its music to video games.
Warner Music’s fiscal Q3 2008 results showed profit improvements on last year, despite a net loss of USD9m. For the quarter, which ended June 30, losses were USD7m up on the USD16m loss for the same period in 2007. The results come against a general downturn in the music industry and were partly buoyed by international sales and currency-related gains.
Digital music revenues grew 39.3% year on year reaching USD156m. However, this still only represents 22.7% of Warner’s total recorded music revenue. Industry wide, analysts claim the increase in digital profits is not enough to offset the steep loss in physical album sales.