Warner Music Group Corp Ordinary Shares - Class A
WMG: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $33.00 | Wmzbst | Jtzgsgxt |
Streaming Growth Decelerating for Warner Music; Lowering FVE to $36
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Business Strategy and Outlook
Warner Music Group is the third largest of the three major global record labels, with Vivendi’s Universal Music in first and Sony Music in second. Like its larger peers, Warner increasingly depends on streaming. Streaming services delivered 54% of total recording segment revenue in fiscal 2020, up from 30% in fiscal 2016. This percentage actually understates the overall impact of streaming, as Warner Music does not break out the streaming portion of publishing revenue separately.