Atlantic Records Hits Milestone: Digital Sales Top Physical

Authored by Mark Hefflinger on November 26, 2008 - 7:35am.

New York - Major label Warner Music Group's (NYSE: WMG) Atlantic Records achieved has achieved a milestone, in that it can now claim that more than half of its U.S. music sales are now digital, The New York Times reports. "We're like a college basketball team on an 18-2 run," Atlantic chairman and CEO Craig Kallman told The Times.

The company also said that its digital success occurred without a complementary decline in CD sales as steep as those seen by its competitors.

Overall, digital sales accounted for 27% of Warner Music Group's revenue during the fourth quarter; the company's digital revenue for its full fiscal year was up 39% from the previous year, to $639 million.

"I think we've figured it out," Julie Greenwald, president of Atlantic Records, told The Times.

"It used to be that you could connect five dots and sell a million records. Now there are 20 dots you can connect to sell a million records."

http://www.atlanticrecords.com/