Edgar Bronfman, Jr. spoke at the Deutsche Bank Securities Media and Telecommunications Conference yesterday (you can stream the audio from the Warner Music Group investor relations site). Two comments stood out above all others. Many of the comments are reruns from recent earnings calls.

Far into the conversation, Bronfman revealed that artist services revenue comprised 5% of 2008 revenue and about 1% of 2007 revenue. (Five percent of 2008 revenues is $174 million.) He defined the artist services business as partnerships with artists on other revenue streams, which to my ears sounds like revenue generated mostly from multi-rights (aka 360) deals. While WMG has some artist services divisions that perform services, today's new artist contracts allow the company to share in non-recorded music revenues regardless of who supports those revenue streams. The record label's argument is it takes the financial risk and is instrumental in launching a career. Because of its role, it deserves to share in the artists revenue streams outside of recorded music.

The other notable statement came from a question about artists going outside of record labels to release music directly to consumers. Bronfman firmly defended the value of the record label model and the company's role as financier and risk-taker. "This question is a decade old," he said while recalling his days with Polygram in the '90s. After ten years, Bronfman said, the answer is that it is still very complex, complicated and expensive to launch an artist. Record companies are only entities putting up the capital against the launch, and record labels will continue to be the only ones in a position to do that. He finished with a bang: "The artist going direct is a false notion, has been a false notion and I think continues to be a false notion."

Other notes from the 70-minute interview:

• In terms of physical decline, range from 15-20% since back half of 2006 due to shifting consumer demand. Floor space reductions not "significantly" impacting WMG revenues (which he said in the last earnings call). Shelf space will not be an issue in the next few years. Retailers going out of business have represented only a "couple of percent" of revenue.

• New iTunes pricing structure: Three price tiers. WMG has "complete discretion" over which tracks get priced at which tiers (and he thinks other labels have the same level of discretion).

• Bundling album with bonus content has been successful, has allowed for higher price points. "Almost always" the bundle outsells the normal version at least in the first few months. Says variable pricing will be good for consumers, will allow WMG to adjust to changes in demand.

• New licensing deal with Apple allows for over-the-air sales via iPhone. iPhone is in four times as many markets as is iTunes.

• Digital biz is on "narrow base" of iTunes and ringtones. Need a major player to get traction for wireless to grow.

• Economics of wireless models: As currently constructed, they are "at least as good" as current digital models of singles and albums.

• A&R: Consistently gained share, a consistent growth, he thinks WMG can continue to gain share. Maybe not at the same pace, but he's confident WMG will grow market share. WMG has maintained A&R spending over the last five years and has generated cash while doing that.

• Not dependent on any one genre for market share gain.

• Reiterates that WMG is in the venture capital business and Live Nation and Ticketmaster capitalize on the success of artists.

• Warner/Chappell: No value creation in separating recorded music and publishing.

• Creditors: WMG in good shape in terms of balance sheet, ability to meet covenants, potential ability to refinance in a couple of years. By then it will have several hundred more on the balance sheet.

• Performance royalty is "important" and "the right thing to do."

• "Not at this time," when asked about reviving talks with EMI. It will need to sort through its balance sheet and debt issues before it can talk with WMG.