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Home | Music Tech | UNIVERSAL CLOSE TO GENERATING $10M PER DAY FROM STREAMING, AS Q1 LABEL REVENUES GROW 19.2%

UNIVERSAL CLOSE TO GENERATING $10M PER DAY FROM STREAMING, AS Q1 LABEL REVENUES GROW 19.2%

Universal Music Group’s recorded music operation turned over €1.208bn ($1.37bn) in the first three months of 2019 – up 19.2% year-on-year at constant currency.

Some €737m ($837m) of this money was generated by streaming, according to the latest financial results from UMG parent Vivendi, revealed today (April 15). That means that Universal’s labels are now amassing approximately $9.3m per day from the likes of Spotify, Apple Music, Amazon Music and YouTube.

As such, streaming made up 61% of UMG’s overall recorded music revenues in the quarter.

In a big story for retailers, UMG’s physical sales grew by 20.8% year-on-year in Q1, up to €193m ($219m).

Following the acquisition of Epic Rights at the top of the year, UMG’s ‘Merchandise and Other’ line generated  €72m ($82m) in the quarter, up over 80% year-on-year.

Universal’s biggest revenue-generating artists/projects in Q1 were (in order): Ariana Grande, the A Star Is Born soundtrack, Japanese power rock band Back Number, Queen and Billie Eilish (pictured).

Universal Music Publishing Group turned over €225m ($256m) in the quarter, up 4.7% year-on-year.

Universal Music Group’s overall Q1 revenues – including recorded music, publishing etc. – rose 18.8% year-on-year to €1.502bn ($1.7bn), comfortably putting the company on track for another $7bn-plus year in 2019.

This meant that UMG made up 43.4% of Vivendi’s total sales in the quarter, which reached €3.459bn.




Universal parent Vivendi is currently looking for a buyer of up to 50% of UMG. Possible mooted buyers have included Alibaba, Tencent, Disney, Verizon, Apple, Google and Amazon.

In February, JP Morgan slapped a $50bn valuation on Universal.

JPMorgan Cazenove, media analyst Daniel Kerven described UMG as “a unique asset” which owns and controls “undermonetized, must-have, global content that is strategic to the tech giants and can’t be replicated”.

(All % figures used here at constant currency.)

About Jonilar

Jonilar is a Ghanaian Publicist, Tourist and Brand expert. He has been nominated for a couple of awards including African Youth Awards,Ghana Music Awards South Africa in the category of “Blogger of the year” category. He writes on Music, Tourism, Digital marketing, Youth development etc. Mobile:+233246106248 E-mail:Jonilaronline@gmail.com

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