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Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain that you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and scale back their touring prices.
Might Common Music Group‘s revenues high $10 billion throughout the course of this 12 months?
It’s actually a chance, with the world’s largest music rights firm posting half-year revenues of €3.83 billion ($4.64bn) earlier this week.
Maybe the larger story at Common proper now, although, is its profitability.
Within the first half of 2021, UMG posted an EBITDA revenue of €822 million ($995m), reflecting a really wholesome 21.5% margin.
Vivendi says UMG achieved this margin by way of a mix of “income development and management of prices”.
Buyers within the Pershing Sq. Tontine Holdings (PSTH) SPAC will probably be studying these numbers and weeping: PSTH’s deal to accumulate 10% of UMG was scrapped earlier this month resulting from points raised by the SEC.
(Sidenote of the week, which suggests Wall Avenue isn’t at all times as sensible because it’s cracked as much as be: On the identical day that UMG’s stellar Q2/H1 outcomes have been introduced, the inventory of the equally named however fully unrelated Common Media Group – with its UMGP ticker – rose 26.2%. Incorrect firm!)
Elsewhere this week, Spotify introduced a blended bag of outcomes for Q2. Most music business eyes would have been on SPOT’s robust subscriber development, which rose by 7 million on Q1 – or greater than 2 million per 30 days.
MBW hasn’t been ready to withstand making Netflix vs. Spotify comparisons prior to now, so right here’s a uncommon instance that chalks a degree to Daniel Ek‘s firm: Spotify’s +7 million subscriber addition in Q2 was practically 5 instances greater than Netflix’s equal “paid memberships” addition (+1.5m) in the identical quarter. (Netflix really misplaced 400,000 subscribers inside North America in Q2.)
Different large music biz tales to interrupt prior to now few days coated YouTube‘s astonishing advert revenues, Reservoir touchdown on the Nasdaq, and Pandora‘s continued decline.
Learn on for extra on 5 of the week’s largest headlines…
1) UNIVERSAL MUSIC GROUP POSTED ALMOST $1BN IN EBITDA PROFIT IN H1 2021
Common’s complete recorded music revenues (throughout all codecs) in Q2 2021 rose 29.7% YoY, as much as €1.65 billion ($1.99bn).
Music publishing revenues at UMG in Q2 have been very barely up versus the identical quarter of 2020 (+1.2%), whereas merchandise (and ‘different’) gross sales rose 67.2%.
Throughout all divisions, together with publishing and recorded music, Common Music Group posted €2.02bn ($2.44bn) in revenues in Q2… up by a whopping 25.5% YoY.
UMG – throughout all its divisions, together with publishing and recorded music – posted an EBITDA of €822 million within the first six months of 2021 (H1 2021), up by some 31.8% YoY.
2) Spotify subscriptions grew to 165m in Q2, up 7m on prior quarter
Spotify printed its monetary outcomes for Q2 2021 this week, revealing that its world Premium Subscriber base grew to 165 million within the quarter (ended June 30).
That was up 20% year-on-year, and up by 4%, or 7 million subscribers, on the 158m that SPOT counted on the finish of the prior quarter (Q1 2021).
The corporate’s complete world Month-to-month Energetic Customers, (MAUs), in the meantime, grew 22% year-on-year to 365m in Q2 2021 and by 3% in comparison with the earlier quarter (Q1 2021) when the platform counted 356m MAUs.
3) YOUTUBE IS NOW GENERATING OVER $3M IN AD REVENUES PER HOUR
Within the three months to finish of June 2021 (Q2), YouTube generated a whopping $7.002 billion from promoting alone – equal to roughly $77 million a day, or $3.2 million each hour.
That’s in line with new fiscal outcomes from Alphabet for the interval, which inform us that YouTube’s Q2 2021 advert income ($7.002bn) was up by 83.7% on the equal determine from 2020 ($3.812 billion).
4) RESERVOIR GOES PUBLIC ON THE NASDAQ
Reservoir Media has turn out to be a public firm, itemizing on the Nasdaq within the US beneath the ticker RSVR.
The acquisitive music rights firm this week confirmed the closing of its beforehand introduced enterprise mixture with Roth CH Acquisition II Co. (ROCC), a publicly traded particular function acquisition firm (SPAC) fashioned by Roth Capital Companions and Craig-Hallum Capital Group.
That mixed firm’s title is Reservoir Media Inc., and it continues to be led by Reservoir’s founder and Chief Govt Officer, Golnar Khosrowshahi.
5) Pandora has misplaced over 10m customers since Sirius acquired it for $3.5 billion
Two years on from the second SiriusXM dedicated a multi-billion greenback sum to purchasing Pandora, the US-only music service’s person base continues to shrink quickly.
In keeping with SiriusXM’s just-released Q2 2021 outcomes, some 55.1 million month-to-month energetic customers (MAUs) have been participating with Pandora within the three months to finish of June this 12 months.
Persevering with a long-running decline in Pandora’s MAUs, that 55.1m determine was down by practically a 3rd (-32%) on Pandora’s all-time MAU peak of 81.5m in This fall 2014.
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and scale back their touring prices.Music Enterprise Worldwide
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