Universal Music posts €3.3bn revenue, restricts India releases
Developed over time first seen 3 months ago
Universal Music Group reported strong second-quarter revenue growth while introducing a paid-streaming release window in India. The policy, which keeps new domestic and international music off free, advertising-supported tiers for 72 hours, is intended to encourage subscriptions in a market UMG considers under-monetised.
Revenue rose 10.5% year on year to €3.294 billion ($3.795 billion), though it was just over €3 billion excluding the recently acquired Downtown Music. Recorded-music revenue increased about 13% to €2.516 billion and publishing rose roughly 8% to €616 million, while merchandising fell 13% to €167 million due to tour timing and weaker direct-to-consumer sales; UMG said it has no plans to extend the India approach to the US or UK.
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In short
- UMG’s quarterly revenue rose 10.5% to €3.294 billion.
- India releases will be paid-only for their first 72 hours.
- Merchandise revenue declined 13% amid weaker touring-related income.
How this story developed
- 3 months ago UMG clarified that its new Indian streaming restriction follows a model previously used in China, while confirming it has no current plan to apply it in the US or UK.
- 3 months ago Universal Music Group said second-quarter revenue rose 10.5% to €3.294 billion as it introduced a 72-hour paid-only window for new music releases in India to encourage subscriptions.
- Music Business Worldwide Universal Music Group generated $3.83bn in Q2, up 13.3% YoY – driven by Noah Kahan, BTS, Olivia Rodrigo, Drake, and Olivia Dean
- The Hollywood Reporter Universal Music posts €3.3bn revenue, restricts India releases
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that a limited 72-hour paid-only window is a proportionate way to encourage subscriptions in a market where advertising-supported listening has not converted enough users into sustainable revenue. They contend that stronger paid streaming income can fund artists, songwriters and local music investment, while free listeners retain access after a short delay. The policy is also presented as a targeted commercial experiment, rather than a blanket restriction across all markets.
The case against
Critics argue that withholding new releases from free listeners may penalise people who cannot readily afford subscriptions and could narrow access to culture in a price-sensitive market. They contend that the most anticipated releases are precisely what draw audiences to legal services, so a paywall may push some users towards piracy or competing platforms rather than paid conversion. They also question whether artists and fans should bear the cost of improving a label’s streaming economics when broader affordability and licensing solutions may be available.
Explained simply
Universal Music Group is one of the world’s largest music companies. It records and distributes music by artists, manages music publishing rights for songwriters, and earns money from streaming, physical sales, licensing and merchandise.
Streaming services usually offer both paid subscriptions and free, advertising-funded listening. Music companies and platforms want more listeners to pay because subscriptions generally bring in more predictable revenue and can generate more money per user.
India is a large and fast-growing market for digital music, but many listeners use free services rather than subscriptions. Universal is testing whether giving paying customers earlier access to new releases will encourage more people to subscribe, as it has previously done in China.
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Originally published by The Hollywood Reporter as “Universal Music Hits $3.8 Billion In Quarterly Revenue, Pushes For Paid Listening in India”.