As listeners continue flocking to digital music platforms, the biggest labels are cashing in big time. According to recent financial reports, Universal Music Group – home to household name artists like Taylor Swift, Billie Eilish and Adele – is raking in revenue hand over fist.
In the first half of 2022 alone, UMG pulled in a whopping €5.5 billion, marking an impressive 8.8% gain over the same period last year. But it wasn’t just core recording revenue that saw growth – merchandise sales exploded nearly 30% as fans sought new ways to support their favs. Music publishing, where songwriting royalties are collected, grew a solid 14% as well.
Breaking down the numbers, subscription service payouts like Spotify were up a healthy 8.5% as streaming continues moving the industry needle. Live shows also helped, with Swift’s massive Eras tour fueling sales. But the real juicy growth came from beyond recordings – merch is muscling its way to the money throne.
With adjusted earnings rising 13.4% to €1.24 billion, it’s clear UMG’s multi-pronged model is paying dividends. And they’re plowing profits back into the machine, looking to take things to the next level. New deals like the recent pact with social video juggernaut TikTok should only boost margins moving forward.
As CEO Lucian Grainge notes, they’re no longer just a record company but a full blown “music entertainment company.”
