Universal Music Group Streaming Revenues Climb in Robust Second Quarter Report

Universal Music Group Streaming Revenues Climb
Eric Charbonneau/REX/Shutterstock

Fueled by the rapid adoption of streaming, Universal Music Group’s revenue grew by 15.6% over the same period in 2016, rising to $1.5 billion for the quarter ending June 30, its parent company Vivendi said in its second-quarter earnings report Thursday. Operating income was up 48% to $183 million.

Subscription and streaming revenue accounted for 45% of UMG’s revenue, more than offsetting the continuing drop in downloads (down 16%) and physical (down 23%) sales. Universal Music Publishing saw a boon from streaming as well, with revenue up nearly 11% to $431 million.


lucian grainge: cannes lions media person of 2017

Universal Music Group Valued at $23.5 Billion, Huge Industry Growth Predicted by Goldman Sachs Report

This fuels rumors that Vivendi will move ahead with an IPO for UMG, reports of which were initially downplayed by UMG chairman/CEO Lucian Grainge but continue to be made to seem irresistible — aided this week in no small part by a wildly enthusiastic report on the music industry’s prospects from Goldman Sachs. That report predicted that global streaming revenues will reach $28 billion by 2030 and increased UMG’s valuation 16 percent to $23.5 billion.

The company pointed to successful releases from Drake and Kendrick Lamar, as well as the 50th Anniversary edition of The Beatles’ “Sgt. Pepper’s Lonely Hearts Club Band,” but particularly the rampant streaming success of Luis Fonsi’s “Despacito” (featuring Daddy Yankee and Justin Bieber), which is the most streamed song of all time with over 5 billion streams across all platforms.




Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0


    Leave a Reply

    No Comments

    Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s

    More Biz News from Variety