It’s the query that retains music rights buyers up at evening: When will the annual development in world recorded music subscription streaming revenues lastly fall under double-digits (i.e. underneath 10% YoY)?

As we speak (March 2), the largest music rights firm on the earth gave us a shocking reply, through its newest monetary outcomes: You’re gonna have to attend somewhat bit longer, pal.

Common Music Group is, as issues stand, the one main music firm to separate out its recorded music streaming revenues into two distinct sub-categories inside its printed fiscal outcomes: (i) Subscription, i.e. paid-for, streaming; and (ii) Different streaming, i.e. ad-supported platforms.

An important information of the day? UMG’s recorded music subscription streaming revenues grew by 10.0% YoY (at fixed forex) in 2022, reaching EUR €3.901 billion. Double digits… simply!

(In a standard 12 months, that 10.0% YoY share acquire would even have been larger: UMG has clarified that in 2021 it benefitted from a one-time ‘DSP catch-up cost’, which consequently then lowered its YoY % enhance in subscription revenues in 2022. Excluding this ‘DSP catch-up cost’ from 2021, says Common, would have meant that its recorded music subscription income would have grown 11.3% YoY at fixed forex in 2022.)

Amsterdam-listed UMG’s Euro-denominated annual subscription income determine of €3.901 billion (see under) works out, at annual trade charges, to roughly USD $4.10 billion.

Or to place it one other manner, as we did in our headline above: UMG generated greater than $1 billion per quarter, on common, from recorded music subscription streaming in 2022.

Whereas we’re within the ‘popping Champagne corks’ finish of Common’s annual outcomes (barely much less fizzy information to observe), UMG’s recorded music subscription streaming revenues in simply This fall of final 12 months (the three months to finish of December), grew by 11.4% YoY, as much as EUR €1.044 billion (USD $1.10bn).

That was the first-ever quarter wherein UMG’s recorded music subscription revenues topped EUR €1 billion.

Extra importantly: within the final quarter of 2022, as subscription streaming’s development continued to gradual in mature markets – and Spotify stubbornly refused to place up its flagship costs – music’s greatest rightsholder nonetheless managed to publish an 11.4% YoY enhance in its most important income stream.

ad-supported revenues

Okay, we warned you there’d be “much less fizzy” information, and it considerations that different ‘bucket’ of streaming income: ad-supported platforms.

In accordance with UMG’s outcomes, on an annual foundation, recorded music ad-supported streaming generated €1.420 billion ($1.49bn) on the firm throughout the course of 2022 – up 9.3% YoY.

These figures are clearly nothing to get too mopey about.

However there was one quantity that unquestionably wafted an acrid scent amongst UMG’s sweeter figures at this time: By way of the final quarter of 2022 (This fall), UMG’s recorded music ad-supported streaming revenues grew by simply 1.8% YoY, to €400 million.

Now. That 1.8% development isn’t a decline, so it must be learn – for now – as one thing of a bump within the highway, pushed by wider macroeconomic tendencies.

In spite of everything, each YouTube and Meta noticed YoY declines of their promoting revenues in This fall 2022.

But with Goldman Sachs predicting that world music ad-supported streaming revenues will greater than triple within the 9 years between 2021 and 2030, it’s a determine that music buyers will need to see bounce upwards sooner or later – considerably so.

Common Music Group shall be very conscious of this, in fact, which can partly clarify why it (like different main music corporations) seems to be changing into more and more much less snug with the dimensions of TikTok’s latest ad-related payouts to music enterprise rightsholders.

Due to the drag-effect of ad-supported streaming in UMG’s outcomes, the agency’s general recorded music streaming revenues (i.e. ad-supported plus subscription) grew by 9.8% YoY within the FY of 2022 (as much as €5.321 billion), and by 8.6% YoY within the closing quarter of the 12 months.

Widening the lens…

Zooming out and taking a look at UMG’s holistic enterprise – throughout recorded music, music publishing, merch, and associated exercise – Common posted full-year revenues of €10.34 billion ($10.87bn) for 2022, up by a powerful 13.6% YoY at fixed forex.

In This fall 2022, these general revenues grew by 8.8% YoY, to €2.942 billion.

By way of recorded music particularly – encompassing streaming, but additionally bodily, obtain, and licensing/sync earnings – UMG generated €7.937 billion ($8.35bn) in annual revenues in 2022, up by 8.8% YoY.

UMG mentioned that its high recorded music sellers throughout 2022 (i.e. the artists/initiatives who generated essentially the most world income within the 12 months) included Taylor Swift, BTS, Encanto OST, Olivia Rodrigo, Morgan Wallen and The Beatles.

Annual recorded music bodily gross sales grew by 4.1% YoY at fixed forex to €1.207 billion ($1.27bn), whereas annual recorded music licensing income surged by 13.4% YoY to €1.072 billion ($1.13bn).

In the meantime, Common’s music publishing firm – UMPG, run by CEO and Chair, Jody Gerson – generated €1.799 billion ($1.89bn) in 2022, up by 26.3% YoY at fixed forex.

Elsewhere, UMG’s ‘merchandise and different’ class of income grew to €618 million in 2022, up 54.1% YoY in fixed forex, as touring-related merchandising income benefitted from the return of reside touring post-COVID.

Adjusted EBITDA

One other attention-grabbing stat to tumble out of UMG’s outcomes at this time: Its adjusted EBITDA revenue (throughout the entire firm) stood at €2.135 billion ($2.25bn), up 11.7% YoY.

That represented an adjusted EBITDA revenue margin of 20.6% for the complete 12 months of 2022.

In This fall alone, that adjusted EBITDA revenue margin weighed in at 21.1%.

As MBW has beforehand reported, Common Music Group is finally focusing on an EBITDA revenue margin within the ‘mid-twenties’.

Additionally essential: UMG’s free money circulate rose 70.2% YoY to €1.086 billion ($1.14bn) in 2022 from €638 million ($671m) in 2021.

All YoY percentages, the place referenced and in any other case, discuss with fixed forex comparisons. Yearly EUR-USD conversion charge taken from IRS.Music Enterprise Worldwide