Eric Levin: Okay. A lot of questions packed in there, Sebastiano. Nice to hear from you. All right. Let me try to tackle that. I think I’ve got 3 groups of questions. So one is financial transformation — what we’re trying to communicate there is a few things. 1 is that it’s launched. It is live. We have several markets now using the new technology successfully, and that is fantastic. It is working and functional in a few markets. What we have done is adjusted our launch schedule to come in waves across fiscal ’23, ’24 and into fiscal ’25. This will allow us to make sure that we have the proper support and hyper-care as each segment of markets is rolled out to make sure that it is successful. And that as we do this, we have the ability to use the new processes and tools successfully with the right training, the right controls.
So it’s a very thorough launch plan phasing over time. As we roll out, the benefits will roll in with it. Obviously, a substantial portion of the benefits happen when it is global. So some of the benefits will roll in, in ’24, although a very modest amount, larger in ’25. And once it’s rolled out in ’25, the benefits we expect to be robust for fiscal ’26. You asked the questions about margin, I’m not sure 100% got it. What I will say about fiscal ’23 is that the acceleration of digital and streaming revenue in the second half of ’23, which is high-margin revenue is a great boost and our active cost management is allowing us to meet the high end of the range, which is what we’ve been looking at in prior years, not every year is exactly the same.
I don’t have an analytical like-for-like comparison sitting in front of me. But every year, we are looking for the opportunities to achieve the high end of the range, depending on the mix of releases distributed versus owned artist services and its rate of growth, which is lower revenue every year has a slightly different profile. But as we look at and we’ll look at in the ’24 budget, look at the profile of ’24s revenue and the margins of that revenue and build the best plan for the year, we can with margin growth as one of the things we are actively managing. Your last question was now that we’re reporting emerging streaming and ad-supported together, I think you want us to give some color on each piece. What we’ll say is that in emerging streaming, there were no notable new deals in ’23, the TikTok deal — I’m sorry, in Q3 of ’23.
The TikTok deal commences in Q4. The category in emerging streaming continue to grow nicely, I would say, well into the teens and as supported continued to show sequential improvement heading back towards growth. And so hopefully, that gives you the color that you want Sebastiano.
Operator: Our next question comes from the line of Matthew Thornton with Truist Securities.
Matthew Thornton: Most of mine have been answered. So a couple of housekeeping questions, if I could. I think given the cadence of the recent price increases across the DSPs, I would assume that we probably don’t see the full run rate impact of that until the calendar fourth quarter, so fiscal first quarter. I just want to make sure that, that’s a fair assumption. And then maybe for Eric, in the publishing side of things and streaming, I think there’s a couple of puts and takes between renewals and a revenue true-up and some CRB impact. And I think there was a copyright infringement settlement within Sync. I’m just kind of curious how to net those out in terms of what the — maybe the net impact from some of those one-time items might have been in the quarter. Any color there would be helpful?
