Universal Music Group Reports Record Streaming Revenues in 2024

Universal Music Group (UMG) has announced its financial results for the fiscal year 2024, revealing impressive growth in recorded music subscription streaming revenues.

According to UMG’s fiscal report, the annual recorded music subscription revenues reached EUR €4.624 billion, which translates to approximately USD $5.00 billion based on average exchange rates used by the IRS.

For the fourth quarter of 2024, which concluded in December, UMG's subscription streaming revenues for recorded music also saw an increase of 9.0% year-over-year (YoY), totaling EUR €1.227 billion, or USD $1.33 billion.

However, UMG reported less favorable news regarding ad-funded streaming. In the fourth quarter, revenues from ad-supported streaming for recorded music declined by 4.1% YoY, amounting to EUR €375 million ($408 million).

Looking at the full year for 2024, UMG’s ad-funded streaming revenues remained relatively flat, experiencing only a slight increase of 0.1% YoY to reach EUR €1.414 billion ($1.53 billion).

When assessing the overall landscape of UMG's recorded music streaming revenues, subscription streaming accounted for a significant portion, representing over three-quarters (77%) of total streaming revenues. The overall total for recorded music streaming revenues in 2024 reached EUR €6.038 billion (USD $6.53 billion), with ad-funded streaming contributing just 23%.

Overall, UMG’s total revenues across all divisions, including recorded music and publishing, stood at EUR €11.834 billion (USD $12.81 billion), reflecting a 7.6% YoY growth. The company also reported an adjusted EBITDA of EUR €2.661 billion ($2.88 billion), an increase of 13.8% YoY.

In the recorded music segment alone, UMG saw revenues rise by 6.4% YoY to reach EUR €8.901 billion ($9.63 billion), while music publishing revenues increased by 9.0% YoY, totaling EUR €2.121 billion ($2.30 billion).

Sir Lucian Grainge, UMG's Chairman and CEO, commented on the achievements of 2024, highlighting the company’s artist-centric approach and the successful rollout of what he termed ‘Streaming 2.0.’ He noted the advances made in technology and artificial intelligence to benefit artists and shareholders alike.

In terms of major releases, UMG's report highlighted that top-selling artists in 2024 included Taylor Swift, Billie Eilish, and Morgan Wallen, among others.

Q4 Financial Overview

During the fourth quarter of 2024, UMG’s total revenues amounted to EUR €3.439 billion (USD $3.74 billion), marking a growth of 7.9% YoY. Without a one-time EUR €20 million payment and additional legal settlements totaling EUR €40 million, revenue growth would have been 6.1% YoY.

UMG's recorded music revenue in Q4 2024 reached EUR €2.566 billion (USD $2.79 billion), reflecting a growth of 6.8% YoY. This figure was bolstered by a EUR €20 million catch-up payment from a digital service provider (DSP) and EUR €32 million from legal settlements related to copyright issues.

In conclusion, the reported figures indicate a strong performance from UMG, despite some challenges in ad-funded streaming. The focus on subscription services appears to be paying off, reinforcing UMG’s dominant position in the music industry.

music, streaming, revenue