From UMG’s 13.3% YoY revenue growth in Q3 to Spotify’s 7m new subscribers… it’s MBW’s Weekly Round-Up

Welcome to Worldwide music businessweekly recap – where we’re sure you’ve caught the top five stories that will make our headlines over the past seven days. MBW’s round-up is powered by Centtriphelping more than 500 of the world’s best-selling artists maximize their income and reduce their touring expenses.

The Q3 earnings cycle continues this week with Spotify and Universal publish their results for the three months to the end of September.

On Thursday (October 27), Universal Music Group announced Q3 revenue of EUR 2.664 billion ($2.68 billion) across all of its divisions (including recorded music, publishing and more).

Online and merchandise sales were two of the biggest highlights of the quarter for UMG.

By Universal register exceptional growth in online sales 8.7% YoY with constant currency to 991 million euros ($998 million) in the third quarter, according to UMG, driven by “continued good growth in music subscriptions”.

UMG merchandise sales have skyrocketed 101.1% by year with constant currency to 189 million euros ($190.32 million) in Q3.

Meanwhile, Spotify reports that they have added 7 million won net Premium subscribers to its user base in Q3, bringing its global total of paid subscribers to 195 million won.

Financially, Spotify creates EUR 3.036 billion euros ($3.06 billion) in quarterly revenue in Q3, up + 12% by year with constant currency. Subscribers / Paid Revenue is charged at 2.651 billion euros ($2.70 billion) in the third quarter, increased + 13% by year with constant currency.

Managing Director SPOT Daniel Ek also told investors on the company’s earnings call this week that Spotify will consider raising its price in the US, after recent price hikes by competitors Apple Music and YouTube.

An individual Apple Music subscription increased $1 to $10.99 per month, while YouTube increased the price of the Premium Family Pack by 28% to $22.99.

Also this week, drum testing company The Music Acquisition Corporation wrote to its shareholders seeking approval, via a vote, for early liquidation, while CISAC reports that global music collections reach EUR 8.48 billion by 2021 ($10.02 billion).

Here’s what happened this week.

1) GENERALLY CREATED ONLY US$1 BILLION FROM STREAMING REGISTRATIONS IN Q3, AS AWESOME TOTAL SALES 13.3% YoY

Over the summer, Bill Ackman’s Pershing Square predicted that Universal Music Group “could grow in revenue at an annual rate of 10% or so over a decade.”

Now, Universal is meeting that challenge.

UMG announced its financial results for the three months to the end of September on Thursday (October 27). The company posted Q3 revenue of EUR 2.664 billion ($2.68 billion) across all of its divisions (including recorded music, publishing and more)…

2) MAY ADD 7 MILLION PREMIUM SUBSCRIBERS IN Q3 – AND ADD 15 MILLION IN 2022 TO DATE

Doomsday analysts continue to conclude that entertainment subscriptions will have a rough ride in 2022 due to macroeconomic pressures. Spotify continues to challenge them.

During the third quarter of 2022 (three months to the end of September), Spotify added 7 million net paid subscribers to its user base, bringing its total global paying subscription audience to 195 million.

That number was revealed on Tuesday (October 25) through Spotify’s official Q3 results announcement.

SPOT’s 195 million subscriber base is the full 15 million subscribers by the time Spotify hits it at the end of 2021 (180 million).

The 7 million subscriber growth in Q3 beats Spotify’s own guidance of +6 million…

3) GLOBAL SONG SONG TAX TAX TO TOPPED $10BN IN 2021, BUT STILL BELOW THE PRIOR STANDARD LEVES

Publishers and musicians’ royalties collected by their communities globally will reach EUR 8.48 billion by 2021 ($10.02 billion).

While that total royalty is up 7.2% from 2020, it’s still below the previous COVID level, showing the impact of the lockdown on live performances.

That’s according to CISAC’s Global Collection Report 2021, released on Thursday (October 27).

4) APPLE MUSIC IS ONLY RELEASING ITS REGISTRATION PRICE TO 10.99 USD IN US. WILL SPOTIFY BE THE NEXT?

Apple is raising prices for Apple TV+, Apple One, and Apple Music worldwide.

In the US, starting Monday (October 24), individual Apple Music subscriptions will increase by $1, from the current $9.99 price to $10.99 per month.

In a statement provided to MBW, Apple said that the change in its Apple Music price “is due to increased licensing costs” and that “in return, artists and musicians will earn more money from streaming.” streaming their music…”

5) $200M SPAC, MUSIC JOINT STOCK COMPANY, PARTS FOR EARLY LIVING AND SHARE FROM NYSE

Over the past few years, we’ve seen a number of big money SPACs launch and merge with music companies to bring their chosen targets to the public.

One such SPAC resurfaced in January 2021, when Music Business Worldwide revealed that longtime President of Geffen Records, Neil Jacobson, was plotting to acquire a new US music company.

Jacobson’s drum testing company, The Music Acquisition Corporation (TMAC), went public on the New York Stock Exchange last February under the symbol TMAC.U, raising $230 million in the process.

TMAC.U, which was formed specifically to make a merger/acquisition in the worlds of both music rights and music technology has been pretty quiet since then – which now looks set to be unchanged in the near future.

According to a new filing with the Securities and Exchange Commission (SEC) in the United States, Jacobson’s SPAC has written to its shareholders seeking approval, via a vote, for early liquidation. …

MBW’s Weekly Round-Up is powered by Centtrip, helping more than 500 of the world’s best-selling artists maximize their income and reduce their touring costs.

Worldwide music business