Music Business

Universal's stock falls 23% as streaming growth was slower than expected, shedding over 30% of their value. 😲

Is this a pushback from streaming culture?
IS this an over reaction as they still made huge profit overall?

Interesting times in music business...

https://www.digitalmusicnews.com/2024/07/25/universal-music-stock-streaming-growth-decline/

I think so. But imo more to do with the economics of steaming than the culture it has created. 

The popping bubble feels inevitable. As streaming gets more pressure from stakeholders (ironically including UMG itself ~3% co-owner of Spotify) to turn a profit they will have to squeeze both their direct customers (subscribers) and their indirect customers (artists willing to pay for reach). Both of which we're seeing right now with the increased sub $ and expansion of advertising options for artists. 

When the squeeze begins, demand decreases. Which then increases the profitability pressure from stakeholders... the spiral begins. I don't know if there's any evidence that this model can even be profitable tbh. But... It will make room for new models! 

What's going to enter the public mindshare as an alternative?

plant eater, music producer, co-founder of @amerge (onchain music licensing co-op)

I agree. I think fandom is the next frontier, that ofcourse can mean many things. What are your thoughts ?