(VIP-NEWS) — Universal Music Group’s labels generated €962m in revenues from streaming in the first half of 2017.
Streaming is driving up recorded music revenue at UMG, according to the latest results for the first half of 2017 from parent company Vivendi.
Recorded music revenues grew by 15.6% year-on-year at constant currency rates to €2.14 billion as massive growth of 45.1% in streaming revenues easily offset the decline in both download and physical sales.
Streaming revenues hit €962 million in the first half of the year. Streaming now accounts for 44.93% of recorded music revenues (including music sales, streaming and licensing).
Sales from digital downloads were down 18%. Physical revenues were down slightly – UMG said it benefited from a more physically-skewed release schedule in 2017.
Universal Music Group’s (UMG) overall revenues totalled €2.66 billion, up 14% at constant currency compared to the first six months of 2016. Sales were driven by growth across all divisions.
Universal Music Publishing Group also benefited from streaming, as well as synchronization and performance revenue. The publisher’s revenues grew by 9.2% at constant currency to €400 million.
Merchandising and other revenues were up 2.2% at constant currency, driven by stronger retail sales.
Best-sellers for the first half of the year include new releases from Drake and Kendrick Lamar, as well as the 50th Anniversary edition of Sgt. Pepper’s Lonely Hearts Club Band by The Beatles. The Weeknd’s Starboy and soundtrack releases from the movies Moana and La La Land also continued to perform well into 2017. Despacito is the most streamed song of all time with over five billion streams across all streaming platforms.
UMG’s income from operations totaled €311m, up 40.8% at constant currency. EBITA amounted to €286m, up 58.4% at constant currency.