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It has been a busy week for music firm earnings sony and Warner The studio additionally launched its second-quarter numbers, following the discharge of corresponding figures from Common Photos just a few weeks in the past.
Sony stories $2.54 billion Recorded music and publishing income grows this quarter Annual enhance of 11.4% (in U.S. {dollars}), whereas Warner Music’s income was US$1.55 billion Stand up Annual enhance of three.1% Calculated on a relentless forex/like-for-like foundation (excluding the one-time influence of occasions akin to BMG’s termination of its WMG distribution settlement final yr).
However that is Warner’s Annual enhance of 13.7% The surge in streaming subscription income stole the present, offering much-needed aid to music buyers rattled by slowing streaming income development reported elsewhere.
on the similar time, transfer A reorganization known as “Reorganization” is underway Cell 2.0the most recent information on this entrance is that the Ok-pop large is launching a Label service enterprise within the US market.
Lastly, MBW explores the fragile steadiness of energy between Spotify and Common Music Group (and why UMG might find yourself undermining Spotify’s free tier).
Right here’s what occurred this week…
Picture supply: yllyso/Shutterstock
1) In case you missed it…HYBE, the corporate behind superstars BTS and SEVENTEEN, simply launched a labeling service within the US
final week, transferthe South Korea-based music firm behind celebrity base station and seventeenrestart.
firm launched Cell 2.0new international technique below new CEO Jason Jaesang Leewho’s succeeding Park Ji-wonhas served as CEO of HYBE for the previous three years.
One of the stunning plans is hidden within the detailed ruins of the brand new construction.
HYBE has revealed that it is coming into one of the crucial aggressive (and profitable) areas of contemporary music: providing Distribution and providers for impartial artists…
2) Sony’s music recording and publishing income within the second quarter was US$2.54 billion, a rise of 11.4% over the identical interval final yr; recorded music streaming income elevated by 5.0% year-on-year
sonyof world music rights operations—protecting recorded music and music publishing—generates US$2.54 billion For the three months to June 2024.
That is based mostly on MBWThe calculation relies on Sony Group CompanyThe Japanese firm introduced its second quarter 2024 (first quarter 2025) outcomes on August 7.
The $2.54 billion determine rose Annual enhance of 11.4% (In comparison with Q2 2023 calendar) Fixed forex in USD conversion.
Sony’s international recorded music enterprise $1.92 billionup Annual enhance of 10.8%.
Its international music publishing enterprise – comprised of Sony Music Publishing – Generate $621.3 million Throughout the three months to the tip of June this yr Annual enhance of 13.3%…
3) Warner Music Group’s second-quarter income was US$1.55 billion; subscription streaming income elevated 13.7% year-on-year
Warner Music Group Introduced monetary outcomes for the three months ended June 30, 2024 (calendar second quarter – the corporate’s third fiscal quarter).
Based on the corporate’s fiscal third quarter (calendar second quarter) outcomes, WMG’s quarterly international company-wide income reached US$1.554 billion (throughout recorded music, music publishing and different actions).
In a submitting with the SEC on Wednesday (August 7), WMG famous that “per the earlier quarter,” the corporate’s recorded music digital income development was affected by bone cementit says, which ends up in $26 million Revenues had been decrease in comparison with the identical interval final yr.
Together with the termination of BMG, WMG’s second quarter company-wide income elevated Annual development of 0.6% Calculated at a set trade charge…
Picture supply: Imagespace/Alamy
4) Warner Music Group simply reversed a development of slowing streaming income development. how?
“Effectively, I am glad that we abruptly now not have to fret in regards to the collapse of the music trade.”
Yesterday afternoon, shortly after, a well known music trade investor despatched MBW a joyful textual content message Warner Music Groupcalendar for second quarter earnings bulletins.
The wording is tongue-in-cheek and the underlying message is considerably severe.
again common music group and sony Each firms reported that streaming income development slowed within the three months to the tip of June, and panic about music’s long-term development story has unfold to Wall Avenue places of work.
Trade observers started to fret; trade analysts started to frown. That Goldman Sachs Chart show 1.2 billion+ By 2030, music streaming subscribers abruptly really feel rather less convincing.
Then Warner Music Group modified the narrative…
5) About… The fragile steadiness of energy between Spotify and Common Music Group (and why UMG could lastly reverse Spotify’s free tier)
Right here’s the Reuters headline a couple of minutes later (completely correct) common music group Second quarter 2024 outcomes had been confirmed on July 24.
After some time, Sir Lucian Grange He preached the identical theme throughout his opening remarks on Common Music Group’s earnings name.
“[This was] Grainge famous our seventh consecutive quarter of double-digit adjusted EBITDA development and confirmed UMG’s income development About 11% year-on-year EBITDA elevated this quarter About 10% year-on-year.
He added: “Our capacity to ship sustainable development like this quarter after quarter is a results of how we designed Common Music Group.”
Then the storm began…
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