Streaming Growth Is Slowing at the World’s Biggest Music Company. Could TikTok Help?

  • 📰 RollingStone
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 51%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Streaming growth is slowing at the world's biggest music company. Could TikTok help? Read Tim Ingham's latest

In simple percentage terms, year-on-year streaming revenue growth at Universal was up, organically, by 23.4% in the nine months to end of September 2019. In the prior year period, that figure stood at 35.8%; in the year before that, it was 40.8%.

These calculations show that, in the first nine months of this year, UMG’s growth in recorded music streaming revenues was over $100 million smaller than that same YoY growth in the equivalent period of 2018 : +$611 million vs. +$497 million . Plus, Universal is still the inarguable number-one most dominant force in mainstream music: Vivendi proudly trumpeted on its call with investors earlier this month that UMG-signed artists claimed eight of the top 10 tracks on Spotify’s Global chart in the first half of 2019 — including the entire top six.

In an investor update issued on October 17th, Morgan Stanley remained upbeat on UMG’s prospects for growth. It noted that, in a bull-market scenario, Universal could currently command a whopping $45 billion valuation. However, Morgan Stanley has also noticed the slowing revenue growth UMG’s labels are seeing from streaming in 2019: It noted that YoY growth from streaming at Universal weighed in at 28% in Q1 this year, down to 23% in Q2 and just 20% in Q3.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 483. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Better-Than-Expected Earnings Ease Growth Fears—for NowEarnings are on track to decline for the third consecutive quarter, but about 75% of the 280 companies in the S&P 500 that have posted results through Wednesday morning have beaten expectations. But tariffs.... . under-promise, over-deliver *classic*
Source: WSJ - 🏆 98. / 63 Read more »