While the music industry has moved away from physical distribution and shifted to streaming, Warner Music Group is adjusting its operations to best suit the industry. The major label has offered to buyout roughly 130 employees’ jobs who still work in the label’s physical distribution side.
Music streaming has become the new industry standard, and people just don’t want to pay for physical items anymore. However, according to Fortune, vinyl is on the rise, thanks to millennials.
In 2017, Warner Music Group experienced a 19.6% decline in CD sales. The major label is looking to save money and reduce its expenditures. According to Billboard, Warner Music Group mailed letters to 130 of its physical distribution employees to buyout their jobs.
WEA president Tony Harlow sent a followup letter that stated:
WEA has always been at the forefront of evolution in the industry, and the current shift towards digital and streaming is no exception. As our business continues to evolve, and in order to maximise our artists’ impact globally, we are realigning resources within WEA.
If you don’t wish to sell your job to Warner, then you’re free to stay if you’d like. Warner is simply trying to prepare for a not-so-successful industry in physical distribution by cutting its expenditures.
Streaming is the king of the music industry at the moment, but vinyl’s quick comeback may be queen shortly.