Universal Music subscription revenue growth slows despite price gains. Pricing lifted Universal Music's subscription revenue, but an acquisition drove much of the reported increase. Market-share pressure and timing differences slowed growth in the underlying business. Universal Music Group (UMG) reported a 16.6% increase in Recorded Music subscription revenue for the second quarter after adjusting for currency changes. But that figure included Downtown Music Holdings, which UMG acquired earlier this year. Excluding Downtown, subscription revenue grew 6.7%. That was down from 7.9% in the first quarter and below analyst expectations of approximately 9.3%. Downtown contributed €116 million in subscription revenue during the quarter. Pricing produced more than half of the underlying growth. Wholesale price increases contributed 3.5 percentage points to UMG's 6.7% underlying subscription revenue growth. These are increases in the rates streaming services pay UMG for its music, rather than prices UMG charges directly to consumers. Market-share pressure means UMG captured a smaller share of listening during part of the quarter. Market-share pressure reduced growth by 1.5 percentage points. Minimum guarantees, accruals, audits and catch-up payments created another one-percentage-point drag. Management attributed the remaining difference from the first quarter to the timing of promotions and price increases. UMG said its market share improved as the quarter progressed, supported by a stronger release schedule. Top sellers included Noah Kahan, BTS, Olivia Rodrigo, Drake and Olivia Dean. Management says industry subscriber growth remains healthy. UMG licenses music to Spotify, Apple Music and other streaming services. It doesn't report how many consumers subscribe to those platforms. The slowdown was in the revenue UMG receives from paid streaming subscriptions. It wasn't a reported decline in subscriber growth. Chief Financial Officer Matt Ellis said UMG hadn't seen a meaningful change in broader industry trends. Management continues to see healthy global subscriber growth, including at streaming services that have raised consumer prices. UMG entered the third quarter with better market-share momentum than it had at the beginning of the second quarter. The company also expects more pricing benefits from recent changes at streaming partners, including Apple price increases and an updated agreement with Pandora. Management is cautiously optimistic that subscription revenue growth will improve during the second half of the year. Revenue growth outpaced profit growth. UMG's total second-quarter revenue grew 13.3% after removing the effect of currency changes. Excluding Downtown, revenue grew 6.4%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached €674 million, up 1.5% on the same currency-adjusted basis. Excluding Downtown, adjusted EBITDA was largely flat. UMG's adjusted EBITDA margin declined 2.2 percentage points to 20.5%. Management attributed the decline to the Downtown acquisition, revenue and repertoire mix, and a merchandising loss. The company produced revenue growth, but that growth didn't carry through to profit at the same rate. UMG shares fell about 25% in Friday trading. The insider take. UMG's immediate question is the quality of its subscription revenue growth. Pricing produced more than half of the company's underlying growth during the quarter, while market-share pressure worked in the opposite direction. Management expects more pricing benefits during the second half and entered the third quarter with better market-share momentum. The next results will show whether that translates into stronger underlying growth. If it does, this quarter may prove to be a temporary slowdown shaped by release timing and other quarterly factors. If it doesn't, UMG may be relying too heavily on price increases to compensate for weaker competitive performance. That's the issue subscription operators should carry into their own reporting. Price increases can strengthen revenue even while other parts of the business lose momentum. Leaders need to see both before deciding whether growth is getting stronger or becoming more dependent on pricing. Related Member Center Resources Considering a subscription price increase? Use these resources together to test the financial impact, assess the risks and plan the rollout. Subscriber-Based price increase model. Test how different price increases and cancellation responses could affect revenue and profit before making a decision. Planning a subscription price increase. Assess whether the business is ready, identify rollout risks and build a practical plan for communicating and implementing the change.

FUGA renews global distribution partnership with Insomniac Music Group. May 20, 2026 FUGA has renewed and expanded its global distribution partnership with Insomniac Music Group. The deal will see FUGA - the B2B distributor owned by Downtown Music - continue to provide distribution, marketing and content support across Insomniac's global release strategy. The renewal was announced on Tuesday (May 19). FUGA first struck its partnership with Insomniac Music Group in November 2022, when the Amsterdam-based distributor began providing distribution, marketing and label services for the electronic label group's portfolio of imprints. Under the renewed agreement, FUGA will continue to provide comprehensive support including catalog management, distribution and content support. Dedicated electronic marketing teams will lead localized campaigns to drive discovery and audience development worldwide. "We are energized by their renewed confidence in our partnership as we continue working with such an instrumental label group that is inspiring and moving audiences on a massive scale." Sarah Landy, FUGA Sarah Landy, Senior Vice President, Americas at FUGA, said: "Insomniac Music Group has long been a pioneer in electronic music, with global reach and deep cultural influence." "We value our shared commitment to high-quality curation and driving opportunities for artists. "We are energized by their renewed confidence in our partnership as we continue working with such an instrumental label group that is inspiring and moving audiences on a massive scale." Joe Wiseman, Director of Insomniac Music Group, added: "Downtown has been a true partner in amplifying the voices of our artists and we're thrilled to extend our partnership." "We're looking forward to building on that momentum and exploring new ways to grow together." "Downtown has been a true partner in amplifying the voices of our artists and we're thrilled to extend our partnership." Jose Wiseman, Insomniac Music Group In addition to renewing its global distribution deal with FUGA, Insomniac Music Group has also extended its neighbouring rights agreement with Downtown Neighbouring Rights (DNR). That neighbouring rights relationship first began in 2022, alongside the original FUGA distribution partnership. Under the renewed deal, DNR will continue to represent Insomniac's neighbouring rights interests worldwide, ensuring transparent reporting and collections across its catalog and future releases. Insomniac Music Group is home to imprints including Insomniac Records, HARD Recs, Factory 93 Records and Bassrush, as well as artist-led labels such as Max Styler's Nu Moda, Joseph Capriati's Metamorfosi and Slander's Heaven Sent. Connie Chow, Marketing Strategy Director - Dance / Electronic at FUGA, added: "Few do more to elevate electronic music and its artists than Insomniac. It's been incredible to work closely with their team to support their releases and help bring their roster to new audiences around the world." FUGA says it continues to deepen its investment in the electronic music space, strengthening its commitment to serving as a destination for electronic artists, labels and entrepreneurs. The Insomniac renewal is the latest in a run of partnership activity for FUGA, which has been steadily expanding its client base across genres and geographies. Last year, the distributor signed a global partnership with Arketyp Group, the indie label group founded by YEAR0001 co-founder Oskar Ekman, whose roster includes Viagra Boys and Yung Lean. In June 2025, FUGA made its first move into direct-to-consumer commerce through a partnership with Shopify-backed fan app Single. The distributor has also expanded in the Asia-Pacific region, striking deals with labels and distributors across Indonesia, India and the Philippines. Its client roster includes independent labels such as Beggars, Better Noise, Epitaph, Ninja Tune and Naxos. Downtown Music joined Virgin Music Group earlier this year, after UMG's USD $775 million acquisition of Downtown Music Holdings was completed in February 2026. Downtown says it collectively serves business clients, creators and artists in 145 countries.Music Business Worldwide