According to Vivendi’s latest edition of its quarterly financial results, Universal Music Group’s streaming revenues have risen from strength to strength against all odds, continuing its winning trend of 2016. The results include in-depth data on the topic.
In the first three quarters of 2016, revenues for Universal Music Group rose by an impressive 3.8 % year-on-year to €3.62bn ($3.96bn), which included a 2.9% rise in purchase of recorded music, 4.1% for publishing and 8.9% for merchandising other sources of income such as brand deals, with the latter having been an area of great growth potential for Universal.
Meanwhile, the already established trends in the field of recorded music business have continued; although download revenues saw a 29% decline, streaming and subscription revenue rose by an impressive 64% – all during these 9 months. Approximately 65% of UMG’s digital revenues consisted of streaming and subscription, generating over €1bn, as opposed to €751m of physical sales and €547m of non-streaming digital income.
Revenues for overall recorded-music haven’t changed a lot on the global level, however, with Europe being down by 2 notches at 35%, North America remaining at a steady 44% and Asia and the rest of the world going up a percentage at 13% and 8% respectively.
Vivendi’s report also revealed that while UMG has over 400 digital services licensed to it globally, it aims to expand its business outside North America, into the continents of Asia and Europe. Their financial release made specific mentions of the upcoming opportunities in Brazil, Africa, China, and Russia, mentioning in particular how UMG has been working closely with Vivendi in said territories.
One of these various upcoming opportunities is WatchMusic, Vivendi’s new music video service that it launched in October in Brazil. Developed in conjunction with Vivo, Brazil’s largest telecom company, the service offers various videos, music videos, documentaries as well as original content, in addition to live-streams festivals and festivals, and packs in offline viewing as well as audio-only options. Vivendi has further plans to expand WatchMusic to other countries of Latin America in the near future.
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