Universal Music Group Reports Revenue of Nearly $11 Billion USD in 2022
Driven by expansion efforts for its new streaming model.
Universal Music Group has posted impressive results for 2022 year. UMG reports an increase of revenue by 21.6% hitting nearly $10.95 billion USD.
The success UMG has incurred from 2022 was largely driven by its new streaming model and strong performances in the recording music and publishing divisions. Variety indicates that recorded music revenues from streaming and subscriptions soared around 19% to over $5.6 billion USD while digital revenues from publishing had an overwhelming uptick of 50% to reach $1.05 billion USD.
In 2022, top-selling artists at UMG include Taylor Swift, BTS and Olivia Rodrigo. In the fourth quarter of 2022, Swifte continued to be a top-seller along with the Beatles, Drake and Lil Baby. The earnings call noted that UMG’s recent partnership with Tidaal to expand its streaming to include Deezer saw the platform become the fifth largest in the world. CEO of UMG, Lucian Grainge said, “Streaming has evolved in a way that undervalues the critical contributions of many artists as well as the engagement of many fans.”
In this year’s annual letter to internal staff, Grainge penned a note that pinpointed the changing streaming economic model and how it is drastically outdated, “What’s become clear to us and to so many artists and songwriters — developing and established ones alike — is that the economic model for streaming needs to evolve. As technology advances and platforms evolve, it’s not surprising that there’s also a need for business model innovation to keep pace with change…Under the current model, the critical contributions of too many artists, as well as the engagement of too many fans, are undervalued.”
The numbers indicated that operating profit increased by 14.8%, or 7.9% in constant currency, to $1.69 billion USD, while net debt dropped 10% to $1.9 billion USD. Physical revenues from recorded music rose to $1.27 billion USD while licensing and other revenue rose to $1.06 billion USD. Under music publishing revenues, performance revenues increased to $393 million USD and synch revenues up to $250 million USD. As for merchandising and other revenues in Q4 of 2022, it also saw a 28.4% year-over-year increase. Lucian Grainge commented on the success, “Today’s report demonstrates that, once again, we continue to successfully manage the company for long term growth while driving strong results in our core business—developing great artists and introducing their music to fans around the world.”
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