Robert Kyncl: Sure, thank you. So there is no question that technology will underpin everything we do. Whether it’s growth or whether it’s efficiencies. And it’s important that we invest into it and that’s what we’re doing. It’s little too early for me to describe exactly what we’ll do in that regard, but I think it gives you the option, investing into, it gives you the optionality to do that when we had the investment capital and can deployed against it. I think the only dilution question, I think it’s something that you’ve been seeing all along, it’s obviously something I keep an eye on that sort of considers a fair game. These are platforms where content providers are uploading content and we have to do a great job and having a robust catalog; b, more great artists that are gaining meaningful share and we have to do a great job with them, so the owners is on us.
Eric Levin: I would tack on to that Michael that, we obviously released music that we A&R and market ourselves. But we also have a significant business that is licensing and distributing Indie music. And we’re constantly expanding our business globally to additional territories. Sometimes that involves acquiring or licensing music or partnering with local independent players. So the independent, as well as the major part of the business are both part of the business we participate in robust way. And it’s part of our strategy to make sure, we’re playing into the significant growth areas of the global music partner.
Michael Morris: Thank you for that, Eric. If I could just follow up, because I think that’s an important point. I don’t know, if you can help quantify or help us with that. But do you think that, that data is sort of from Spotify and I don’t mean to just pick them, but that as an example is sort of underestimating your actual participation because of your share of the Indie side as well.
Eric Levin: Some want to kind of respond to an individual platform, because we literally have hundreds of digital platforms that were licensed to it’s portfolio, some of whom are global, some of whom are local, some of who are subscription, some of whom are ad-supportive, some are socially oriented. It is our job to — one, the first thing is that the consumption of music across platforms globally, digital consumption continues to grow. That means that there is additional opportunities for us to license and monetize music. That’s our job, not just to look at one platform, but to look at different platforms and develop and different territories and develop a strategy to drive growth. And it’s our job to look at the different ways music is created and released and figure out the right strategy to participate in those. So for us, it’s kind of a multi-layered, multi-tiered strategy and we believe that positions us well for continued strong growth.
Michael Morris: Thank you very much.
Robert Kyncl: Thanks, Michael. Appreciate it.
Operator: Thank you. Our next question comes from Kutgun Maral from RBC Capital Markets. Your line is open.
Kutgun Maral: Good morning and thanks for taking my question. I wanted to follow-up on the recorded music subscription revenue discussion from earlier, just because it has been a major area of debate. Eric, I know you talked about the impact of the release slate and content cyclicality and how that could cause a couple of 100 basis-points of volatility here and there. But the magnitude of the deceleration from Q4 to Q1 was perhaps at the upper-end of that, maybe even greater thinking through some benefits from the Apple Music price increase. So there’s just a broader concern, there’s something else going on beyond this market-share shifts. And so I wanted to confirm your views and maybe get a read on whether the Q1 growth rate of high single digits, it’s may be an appropriate benchmark for Q2 ahead of your stronger back-half release schedule? Thank you.
Eric Levin: So thank you. So I would say, two things that affect streaming growth overall. One of which is release slate and the second one is there was we did see an additional slowdown in ad-supported streaming and we should spend a moment on that. So given the kind of dislocations are challenges in the macro-economy, we are seeing ad-supported streaming continue to slow-down and decelerate. Actually declined versus prior year and the decline is getting more pronounced. We have not seen it as a floor or start to rebound. So we’re still seeing continued worsening in the ad-supported market. On the subscription side, we have looked at this and we did have a softer largely U.S. base release schedule this quarter and we do think that is what is driving the slowdown in this quarter, could roll into our fiscal Q2.
But given our release schedule as second-half oriented this year, we do feel-good about our performance and — of releases and strength in the second-half of the year.
Kutgun Maral: Great. Thanks, Eric.
Eric Levin: Thank you.
Operator: Thank you. And our last question will come from Stephen Laszczyk from Goldman Sachs. Your line is open.
Stephen Laszczyk: Hi, great. Good morning and thanks for taking the question. Maybe just a follow-up on that last ad supported question, Eric. Could you remind us what portion of your total streaming revenues are driven by ad supported, excluding the emerging deals and to what extend there might be any timing differences in those revenues versus what we see out of the likes of Spotify or YouTube?
Eric Levin: There shouldn’t be a meaningful timing difference. I think that — so it is in the 10s kind of streaming revenue, call it, low-teens or maybe even kind of 12, 13 — kind of — low-teens kind of area. And we’ve seen a deceleration there and there shouldn’t really be a meaningful timing difference, but others are seeing in the market.
Stephen Laszczyk: Got it, thanks for that. And maybe just one on Sync. Could you maybe talk a little bit more about the types of conversations your team is having with your Sync partners, maybe how much visibility they have into that piece of content creation or ad spend this year and maybe how that’s trending compared to what we’ve seen in years past? Thank you.
