Welcome to Music Business Worldwide’s weekly roundup, where we make sure you’ve caught up on the five biggest stories that have hit our headlines over the last seven days. The MBW roundup is supported by Centtripwhich helps over 500 of the world’s best-selling artists maximize their revenue and reduce their touring costs.
It was a busy week for music company earnings, with Sony et Warner release their figures for the second calendar quarter, following Universal’s release of its equivalent figures a few weeks earlier.
Sony reported 2.54 billion US dollars Recorded music and publishing revenues up in the quarter 11.4% year-on-year (on a US dollar converted basis), while Warner Music’s revenues of $1.55 billion were up 3.1% year-on-year on a constant exchange rate/comparable basis (excluding one-off impacts from events such as BMG’s termination of its WMG distribution contract last year).
But it was Warner 13.7% year-on-year A surge in streaming subscription revenue stole the show, providing much-needed relief to music sector investors unsettled by slowing streaming revenue growth reported elsewhere.
In the meantime, MOVES is in the midst of a restructuring called MOVES 2.0and the latest news on this subject is that the K-pop giant is launching a corporate labeling services in the American market.
Finally, MBW explored the delicate balance of power between Spotify and Universal Music Group (and why UMG might end up tightening the screws on Spotify’s free tier).
Here’s what happened this week…
1) IN CASE YOU MISSED IT… HYBE, THE COMPANY BEHIND SUPERSTARS BTS AND SEVENTEEN, JUST LAUNCHED A LABEL SERVICES COMPANY IN THE U.S.
Last week, MOVESthe South Korea-based music company behind the superstars BTS et SEVENTEENrestarted.
The company launched MOVES 2.0a new global strategy under the new CEO Jason Jaesang Leewho succeeds Parc JiwonCEO of HYBE for three years.
One of his most surprising plans was buried in a detailed description of the new structure.
HYBE has revealed that it is entering one of the most competitive (and lucrative) sectors in modern music: providing distribution and services for independent artists…
2) SONY GENERATED $2.54 BILLION FROM RECORDING MUSIC AND PUBLISHING IN THE SECOND CALENDAR QUARTER, UP 11.4% ON $12 BILLION; RECORDED MUSIC STREAMING REVENUE UP 5.0% ON $12 BILLION
Sony‘s global music rights business – across recorded music and music publishing – generated 2.54 billion US dollars over the three months to the end of June 2024.
It depends MBWThe calculations of s are based on Sony Corp. GroupThe company’s second quarter 2024 (fiscal first quarter 2025) results, as announced by the Japanese firm on August 7.
The figure of $2.54 billion was up 11.4% over one year (compared to calendar Q2 2023) at constant exchange rates converted to U.S. dollars.
Sony’s global recorded music business generated 1.92 billion US dollarsup 10.8% year-on-year.
Its global music publishing business – led by Sony Music Publishing – generated 621.3 million US dollars in the three months to the end of June this year, up 13.3% over one year…
3) WARNER MUSIC GROUP GENERATED $1.55 BILLION IN SECOND CALENDAR QUARTER; SUBSCRIPTION STREAMING REVENUES GREW 13.7% YOY
Warner Music Group released its financial results for the three months ended June 30, 2024 (2nd calendar quarter – 3rd fiscal quarter of the company).
According to the company’s third fiscal quarter (second calendar quarter) results, WMG saw its company-wide global quarterly revenue reach 1.554 billion US dollars (in recorded music, music publishing and other activities).
WMG noted in its SEC filing on Wednesday, August 7 that “consistent with the prior quarter,” the company’s recorded music digital revenue growth was adversely impacted by the termination of its distribution agreement with BMGwhich, according to her, resulted in $26 million lower revenue compared to the previous year’s quarter.
Including the BMG discontinuation, WMG’s second calendar quarter revenue increased 0.6% year-on-year at constant exchange rates…
4) WARNER MUSIC GROUP HAS JUST RESISTED THE TREND OF SLOWING STREAMING REVENUE GROWTH. HOW?
“I’m glad we’re suddenly not worried about the implosion of the music industry.”
A jovial text from a prominent music industry investor sent to MBW yesterday afternoon, shortly after Warner Music GroupAnnouncement of second quarter results.
The wording was ironic, the underlying message a little more serious.
After Universal Music Group et Sony Both companies reported slowing growth in their streaming revenue in the three months to the end of June, but concerns about music’s long-term growth have crept into Wall Street offices.
Industry observers began to worry and industry analysts began to frown. Goldman Sachs graph showing 1.2 billion+ Music streaming subscribers by 2030 suddenly seem a little less compelling.
Then Warner Music Group changed the narrative…
5) ON… THE DELICATE BALANCE OF POWER BETWEEN SPOTIFY AND UNIVERSAL MUSIC GROUP (AND WHY UMG MIGHT END UP GIVING UP ON SPOTIFY’S FREE OFFERING)
“Universal Music’s sales exceeded expectations in the second quarter.”
That was the (perfectly accurate) headline from Reuters a few minutes later Universal Music Group confirmed its second quarter 2024 results on July 24.
A few moments later, Sir Lucian Grainge He repeated the same theme in his opening remarks on UMG’s earnings call.
«[This was] “This is our seventh consecutive quarter of double-digit adjusted EBITDA growth,” Grainge noted, confirming that UMG’s revenues were up ~11% year-over-year during the quarter, with an increase in EBITDA ~10% year-over-year.
He added: “Our ability to generate sustainable growth like this, quarter after quarter, is a result of how we designed UMG.”
Then the storm began…
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their revenue and reduce their touring costs.
