Record labels used to record bands; press their vinyl or CD singles, EPs and LPs; store them in warehouses; ship them to retailers; have remaindered stock sent back; and work out what the hell to do with all that unwanted audio.

It was a logistical nightmare, and one that record labels have all but managed to wipe their hands of.

They still record the bands – driving many into debt they’ll never pay off – but today they send everything digitally. No warehouses, no trucks, no returns. Well, a few, but not many. Money for old rope.

Still, you need the artists before you can send the files, and industry behemoth Universal Music Group can thank the likes of Taylor Swift, Sabrina Carpenter, Billie Eilish, Chappell Roan [pictured at top] and Post Malone for revenue growth this quarter, according to company financials released overnight.

Overall revenue of €8.39 billion (A$13.9 billion) in the nine months to September 30, 2024, represented an increase of 6.3 per cent year-on-year, “driven by strong growth in all segments”, UMG said. Excluding a prior-year item affecting comparability, revenue grew 7 per cent year-on-year.

 

Post Malone.

In the third quarter 2024 recorded music revenues were €2.15 billion (A$3.56 billion), up 5.4 per cent compared to the third quarter of 2023.

Subscription revenue grew 7.6 per cent year-on-year, “driven primarily by the growth in global subscribers, as well as price increases at certain platforms”.

However ad-based streaming revenue declined 0.8% year-over-year in the third quarter “due to mixed performance at advertising-based platform partners as the digital advertising market remains volatile”.

Downloads and other digital revenue in the third quarter declined 28.8 per cent year-on-year, “attributable to the continued format shift towards streaming”.’

 

 

Some of the labels owned by UMG.

Licence and other revenue increased 20.4% year-over-year in the quarter, “due to improvements in synchronisation income, greater live and brands income and increased direct-to-consumer related activities”.

In the third quarter of 2024 revenue was €2.87 billion (A$4.75 billion), an increase of 4.3 per cent year-on-year.

Last year’s figure included a €53 million (A$88 million) “benefit in Music Publishing from the accrual for a catch-up payment from certain digital service providers” (think of it as back pay), and if you take this out, revenue for the third quarter grew 6.3 per cent.

 

UMG subsidiary Island Australia, roster.

Top sellers in the prior-year quarter included Swift, Seventeen, Morgan Wallen, Olivia Rodrigo and King & Prince.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the third quarter 2024 increased 16.3 per cent year-on-year to €556 million (A$920 million).

UMG was scheduled to host a conference call for investors in the early hours of Friday morning Australian time.

Sir Lucian Grainge, UMG’s Chairman and CEO, said: “We are setting the stage for a new wave of streaming growth and new opportunities to UMG, its artists, songwriters and shareholders.”

Meanwhile, the company has announced that CFO Boyd Muir has been promoted to COO.