UMG Revenues Pivot From Sales To Streams

Paris: Vivendi-owned Universal Music Group, the world’s largest record label, made nearly US$1.64B or $4.5M a day from streaming and subscriptions last year, the latest sign that listening on platforms such as Spotify is propelling music companies to a digital future.

Noteworthy is the fact that the top revenue-generating artists for the world’s largest record group in the year were Drake and Justin Bieber--followed by Rihanna, Ariana Grande and the Rolling Stones.

The company’s revenues from streaming grew 58% in 2016, offsetting steep declines in album and download sales, which dropped by 15 and 29%, respectively.

Key is the fact that UMG's key profitability measure, EBITA, improved by 8.4% in 2016, to $712M.

 

– Read further analysis and facts in the Financial Times and MBW

Leave a comment