Q3 Music Earnings Roundup: Here’s What Every Company Made (Updating)
Major music companies reported third-quarter results as they navigated rising costs and economic uncertainty. Spotify maintained subscriber growth and posted record gross margins, while Deezer and SiriusXM raised their full-year profitability outlooks, highlighting a focus across the sector on profitable growth and cost control.
Deezer’s revenue rose 1% in constant currency to €133.8 million, with subscriber revenue up 6.4% to €94.1 million; its French subscriber base grew 6.5%. Outside France, direct subscribers increased 4% to 5.8 million, while subscribers through business partnerships fell 17% as Deezer wound down some lower-margin deals. UMG’s subscription and streaming revenue grew 8.4% organically, and SiriusXM added 5,000 self-pay subscribers while reducing churn to 1.5%; the article says the roundup will be updated as more results emerge.
In short
- Music companies are prioritising profitable growth and lower costs.
- Deezer revenue reached €133.8 million, up 1% in constant currency.
- UMG sees streaming subscriptions as a major future growth driver.
Explained simply
Music companies earn money from subscriptions, advertising, streaming royalties and partnerships. Their results can be affected by how many people pay for services, how much listeners tune in and the costs of licensing music and running platforms.
The key players include streaming services such as Spotify and Deezer, audio broadcaster SiriusXM, and record company Universal Music Group (UMG). They operate different parts of the music business: services connect listeners with music, while record companies earn revenue from the rights to recordings.
Subscriber numbers and revenue growth show whether companies are attracting or keeping customers, but costs also matter. Profitability helps indicate whether their business models can sustain growth, particularly when economic conditions are uncertain.
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