Universal Music Group’s revenues grew 10 percent to €5.673 billion ($7.09 billion at the current exchange rate) in 2017, largely driving its parent company Vivendi’s earnings in the past year.
According to Vivendi’s earnings report released on Thursday, the media corporation’s revenue grew by 4.9 percent overall giving detailed props to UMG. It also noted the label group’s agreements with Spotify, YouTube, Facebook and Tencent in China.
UMG’s recorded-music revenues grew by 11.3% to $5.5 billion while growth in subscription and streaming revenues which were up some 35% more than offset the decline in both download and physical sales. Music publishing revenues grew by 9.6%, also thanks to the boost in subscription and streaming revenues, as well as growth in synchronization and performance revenues. There was 7.1 percent decrease in merchandising and other revenues, which was attributed to lower touring activity.
New releases from Taylor Swift, Kendrick Lamar and Drake, as well as carryover sales from The Weeknd, Luis Fonsi and Daddy Yankee’s Despacito, the 50th Anniversary edition of The Beatles, Sgt. Pepper’s Lonely-Hearts Club Band and as soundtrack releases from Moana and La La Land were all highlighted as top-grossing projects.
According to the report, in 2018, UMG should be able to benefit from the growth of the market particularly as a result of the development of subscription and streaming services.
UMG entered into a number of major agreements in 2017. After announcing a landmark deal with Tencent in May 2017, and re-setting its relationship with Spotify in April 2017 and YouTube in December 2017, UMG entered into a deal with Facebook, also in December 2017.