Universal Music makes $1bn from streaming in Q3

This was the second time the music company’s recorded music streaming revenue surpassed a billion dollars in a single quarter. The figures were revealed by UMG’s parent company, Vivendi.

In the first nine months this year, music streaming platforms paid UMG about €2.8bn in global recorded music revenues, a growth of $410m, or 15.8% in organic terms, from the €2.4bn that Universal received from the platforms last year. Additionally, UMG turned over €5.31bn in revenues, up 5.1% on an actual basis compared to the first nine months in 2019.

Recorded music revenues climbed by 6.2% at constant currency and perimeter, which was driven by growth in subscriptions and streaming revenues, and the receipt of a digital royalty claim in the first quarter of the year.

The best sellers of recorded music in the first nine months this year included new releases from The Weeknd, BTS, Justin Bieber, Lil Baby and King & Prince, as well as continued sales from Billie Eilish and Post Malone.

Physical sales dropped to 10.2% compared to the first nine months of 2019, while download sales declined by 20.1%. Music publishing revenues jumped to 15.6% at constant currency and perimeter compared to the same period in 2019. They were driven by increased subscription and streaming revenues, and the receipt of a digital royalty claim in the second quarter this year.

However, the impact of COVID-19 on both touring and retail activity impeded some areas of the business. Merchandising and other revenues tumbled 42.6% at constant currency and perimeter compared to the first nine months last year.

UMG also had other notable achievements in the third quarter. For the week of 21 to 27 August, UMG set a new record by having nine of the top 10 albums on the Billboard 200 chart for the fourth time in the chart’s 64-year history. The company also ranked No 1 on the Billboard 200 for 15 consecutive weeks.

In terms of partnerships, UMG in August announced two key deals in China: a multi-year extension of its licensing agreement with Tencent Music Entertainment Group and a new multi-year licensing agreement with NetEase Cloud Music. Meanwhile, Vivendi on 20 October confirmed that it intended to take UMG public in 2022.