Universal streaming revenue overtakes downloads

Universal Music Group (UMG)’s third quarter report sees the world’s largest record company hit a landmark.

Revenue from streaming has overtaken downloads, and now represents 51% of its digital revenue. This follows a 33% year-on-year rise by streaming and an 8% drop by download income.

Digital in this period accounted for €450 million (A$684.3 million) of UMG earnings, with streaming’s contribution at €230 million ($349.7 million). It marks 19% of total UMG revenue of €1.18 billion ($1.79 billion), and 25% of recorded revenue. It is a figure that is set to rise as UMG puts the pressure on streaming services to drop their freemiums and push customers to a subscription-only model.

UMG is the second major label to see streaming surpass downloads, following Warner Music some months ago.

According to a report from its parent company Vivendi’s financial statement, UMG’s recorded music income in the first nine months of 2015 was €2.75 billion ($4.18 billion). This represented a rise of 12.3% year-on-year or 1.9% at constant currency/perimeter. Digital rose 5.9% rise to €1.38 billon ($2 billion), and is 50.1% of UMG income.

Physical sales dropped 7.9% to €867 million ($1.3 billion), while sync and licensing income was up 11.3% to €505 million ($768 million).

Meantime, Major Lazer – who are signed to Diplo’s Mad Decent and UMG subsidiary Interscope – have claimed the most-streamed song of all time on Spotify with their track Lean On. The single has been streamed 526 million times worldwide, surpassing previous title holder Ed Sheeran with his global #1 Thinking Out Loud.