×
You will be redirected back to your article in seconds

Universal Music Group Streaming Revenues Climb in Robust Second Quarter Report

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.

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.

 

 

 

More Biz

  • Tencent Profits Hit $1 Billion Per

    Tencent Profits Hit $1 Billion Per Month, As Company Loses Fizz

    Growing regulatory encroachments into its games business, a smaller than expected spin-off for its music division, and a fourth quarter profits drop, pointed to a troubling year for Chinese tech giant Tencent. Its financial results for the full 2018 period, while delivering profits of nearly $1 billion a month, appeared to bear out that thesis. [...]

  • splice

    Splice Raises $57.5 Million in Latest Funding Round

    Splice, a favorite of music creators that allows access to a library of three million rights-cleared sounds, announced today that the company closed a Series C funding round at $57.5 million. That brings Splice’s total amount raised to roughly $102 million since its launch in 2013. It raised a Series B in November of 2017. [...]

  • WGA Agents Contract Tug of War

    WGA Leaders to Meet With Showrunners on Agency Packaging Fight (EXCLUSIVE)

    WGA leaders are set to meet Wednesday night with a group of showrunners who are raising concerns about the guild’s handling of negotiations with talent agents over the issue of packaging fees and agency-affiliated productions. The meeting is set for 7:30 p.m. at WGA West headquarters. WGA West president David Goodman is expected to attend. [...]

  • Bill Murray St Vincent 2014

    Weinstein Co. Sued Over Trademark Infringement in Bill Murray Film

    A horse-racing announcer has sued the Weinstein Co., claiming that the company infringed on his trademarked phrase in a 2014 Bill Murray movie. Dave Johnson is the man behind “And down the stretch they come!,” which he began using while calling races in Illinois in the 1960s. The phrase took off when Johnson moved to [...]

  • HALLIE ANDERSON AND JESSICA PAGE Mom

    Mom + Pop Promotes Hallie Anderson and Jessica Page to Co-General Managers

    Mom + Pop Music has promoted Hallie Anderson to co-GM and head of marketing and Jessica Page to co-GM and head of digital, the company announced today. They had previously served as VP of marketing and VP of digital strategy, respectively. “Being able to promote, empower and support Hallie and Jess in their new positions [...]

  • Disney Fox Takeover Placeholder

    Disney, Fox Employees Grapple With Day One Transition on Two Hollywood Lots

    What kind of a boss will Disney be? That’s a question facing employees at 20th Century Fox, Fox Searchlight, National Geographic Partners, FX Networks, and other assorted parts of Rupert Murdoch’s former media empire. Wednesday was their first full day as staffers of the Walt Disney Co. and the initial moves have done little to [...]

  • Jay Wilson Joins Mascot Label Group

    Jay Wilson Joins Mascot Label Group as VP of Publicity

    Jay Wilson has been named VP of publicity for Mascot Label Group, the company announced today. A veteran of Republic, Glassnote and Universal Records, In his new position Wilson will conceive and implement media strategies for the company and its roster of artists such as Beth Hart, James Morrison, P.O.D., Robert Randolph and the Family [...]

More From Our Brands

Access exclusive content