Q2 2025 Music Industry Earnings: How the Biggest Players Performed
The second quarter of 2025 was full of contrasts across the global music industry. While some companies posted record-breaking growth, others struggled with cost pressures, changing consumer behavior, and shifting revenue streams. Here’s a breakdown of how the world’s largest music companies fared.
Universal Music Group (UMG)
Revenue: $3.38 billion, up 4.5%
Key drivers: Subscription revenue climbed 8.5% to $1.36 billion. Publishing surged 14.5%, boosted by Chord Music Partners.
Challenges: Merchandising and physical recorded music dipped.
Investor reaction: Despite growth, shares fell 5% the next day on concerns around cash flow and margins.
Sony Music
Revenue: $3.22 billion, up 5.3%
Recorded music: $2.09 billion (+0.7% as reported, +8.4% in USD terms).
Publishing: +2.1% as reported, nearly +10% in dollar terms.
Highlights: Big releases from Bad Bunny, SZA, and Sleep Token kept momentum strong.
Warner Music Group (WMG)
Revenue: $1.7 billion
Growth drivers: Double-digit publishing growth and strong streaming subscriptions.
Headwinds: Loss of BMG as a distribution client.
Market impact: Shares rose 3.5% following the results.
Live Nation
Revenue: $7 billion, up 16%
Concert revenue: $5.95 billion (+19%) – proof fans are still flocking to shows.
Other streams: Ticketmaster revenue up 2%; sponsorship & advertising up 9%.
Profitability: Adjusted operating income up 11% to $798 million.
Spotify
Performance: Beat user and subscriber growth targets.
Challenges: Operating income pressured by taxes and currency fluctuations.
Investor reaction: Stock fell sharply after a cautious forecast for Q3.
Tencent Music Entertainment
Revenue: RMB 8.44 billion ($1.18 billion), up 18%
Subscribers: 124.4 million (+6.3%).
Subscriptions revenue: RMB 4.38 billion ($611 million), up 17%.
Momentum: Advertising, concerts, and artist merchandise also grew strongly.
HYBE (South Korea)
Revenue: $516.7 million, up 10.2%
Operating profit: $48.3 million (+30%).
Drivers: Successful global tours, BTS solo releases, and strong engagement on Weverse.
Key Takeaways for the Industry
Streaming remains the backbone: Growth in subscriptions kept UMG, Sony, Warner, and Tencent on track despite physical declines.
Live is booming: Live Nation and HYBE prove demand for concerts is stronger than ever, even with global economic uncertainties.
Mixed investor sentiment: Despite revenue growth, stocks like Spotify and UMG were punished due to weak forecasts or margin concerns.
The results highlight a resilient but highly scrutinized industry. Growth is still there — but investors are demanding profitability, not just scal
