Warner Music Group Corp. saw its stock experience a significant decline, the largest in 18 months, after announcing the termination of its music distribution agreement with BMG.

The company stated that this development will have a negative impact on its financial results in the upcoming year, particularly affecting growth opportunities in the music streaming sector.

BMG, a subsidiary of Germany's Bertelsmann, revealed in September that it would be taking over its digital distribution internally, effectively ending its nearly eight-year partnership with Warner Music.

This transition is expected to have significant consequences for Warner Music's revenue streams as the industry continues to evolve.