Universal Music Group (UMG)'s stock continues to face challenges, trading at $24.80 (€23.12) per share as of November 6th, 2024. This represents a 21% decline from six months ago, despite the resolution of the TikTok licensing dispute.

The stock's decline began with UMG's Q2 2024 earnings announcement, triggered by concerns over streaming growth plateaus and subscription slowdowns. The downward trend has persisted even after Q3 earnings and the company's ambitious 2024 Capital Markets Day presentation.

Key Points:

• Q3 2024 recorded music subscription revenue grew 7.6% YoY to $1.22 billion
• UMG forecasts 8-10% compound annual growth for subscription revenue through 2028
• Company launches "Streaming 2.0" initiative focusing on superfan monetization
• Approximately 20% of current streaming subscribers may upgrade to "Premium" tier
• Strategy combines expanding subscriber base while increasing revenue per user

The success of UMG's recovery largely depends on its ability to execute the "Streaming 2.0" initiative and achieve its forecasted subscription growth targets. The company plans to release further updates on these initiatives in the coming months.

Related Articles

Previous Articles