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For a while revenues held up, suggesting it was possible to run a successful music firm on the cheap.
While revenues are growing strongly, Twitter remains unprofitable.
And while revenues could continue to trickle in, she said that the drop-off appeared serious.
"YouTube streams have grown massively while revenues have grown very little".
While revenues have never dropped before, it has had to deal with dips in profit.
The earnings were below the expectations of Wall Street analysts, while revenues were higher.
Full-year operating profit rose 6% to €8bn (£6.1bn) while revenues fell 2.7% to €48.4bn.
Profit before tax came in at £342m, up 32.6%, while revenues rose 3.7%.
Pre-tax profits came in at £39m, while revenues shot up 44%too £609m.
Over the past seven years, player costs grew 19percentt annually, while revenues increased 15percentt a year.
This means the level of subsidies per passenger has fallen while revenues to Whitehall have risen by more than £1bn.
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