Spotify has surpassed Universal Music Group to become the most valuable music company globally. Analyst firm Omdia’s latest “Music Industry Sharewatch” report reveals Spotify leapfrogged over UMG during the second quarter of 2024.
The Swedish streamer saw its market cap jump a whopping 18% to hit $62.5 billion—dethroning UMG’s long-held perch at the top. While UMG dipped slightly to $53.7 billion, Spotify’s share price rocketed nearly 70% already this year alone. It’s clear streaming is where the real money flows nowadays.
Not content with just one upset, Spotify also widened its lead over third-place Tencent Music, whose value still grew a solid 26% to $24.1 billion. Spotify’s swelling dominance became even clearer—growing its overall industry share from 24.9% to a commanding 28.7%.
So as majors like UMG slipped marginally in clout, Spotify strengthened its stranglehold. The report underlines how music’s epicenter continues migrating online. While all 28 tracked companies collectively grew, streaming platforms comprised a huge 41% of the $217.5 billion total market cap.
It’s dawning on investors that clicks trump tangible copies in today’s landscape. As a digital behemoth Spotify proves perfectly poised for a future beyond files. With fans growing online and artists joining the uprising, the major players risk losing power; unless rising to streaming’s challenges themselves.
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