What You Should Know About UMG’s Q2 Earnings: Uneven Streaming Growth, Facebook Licensing & More

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A Universal Music Q2 earnings analysis highlights uneven streaming growth and more, including a lapsed licensing deal with Facebook for music videos.

, but the conversation during Wednesday’s earnings call was mostly focused on streaming. Subscriptions, which accounted for more than half of total recorded music revenue, were a key factor in the company’s 8.7% revenue growth in the quarter. Even so, UMG’s streaming business is not firing on all cylinders. Ad-supported streaming continues to show weakness and UMG revealed that Facebook no longer licenses its premium videos.

“Other” streaming revenue dropped 3.9% in the quarter, which Muir attributed to a decline in ad-supported streaming and some platform-specific issues . UMG warned of weak ad-supported streaming last quarter, and Muir said UMG needs to see “broad-based improvement across multiple partners and geographies over a longer timeframe before we’re ready to adopt a less cautious view.” Another reason for a slowdown in non-subscription streaming revenue was Facebook’s departure from music videos.

 

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