Universal Music Group Forecasts 7%+ Growth Through 2028 Backed by Taylor Swift & Top Artists - 2025 Update

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Highlights

• Universal Music Group (UMG) forecasts strong, sustained revenue growth driven by subscription increases, enhanced superfan monetization strategies, and key partnerships.
• The powerhouse label representing megastars like Taylor Swift, Drake, Ariana Grande, and Billie Eilish anticipates a compound annual revenue growth rate (CAGR) of at least 7% through 2028.
• Subscription revenue is expected to grow annually between 8% and 10%, reflecting expanding digital consumption.

Dubbed the "Taylor Swift Effect," UMG’s growth outlook underscores the influence of top-tier artists in driving the music industry's digital transformation.

Universal Music Group, home to chart-topping artists including Taylor Swift, Billie Eilish, Ariana Grande, and Drake, announced robust financial projections on Tuesday, highlighting anticipated gains in subscriptions, innovative "superfan monetization," and strategic collaborations.

Ahead of its Capital Markets Day in London, UMG revealed its fiscal outlook through 2028, targeting a revenue CAGR of no less than 7%, with subscription revenues growing between 8% and 10% annually. The company also projects an adjusted EBITDA CAGR of at least 10%, alongside a free cash flow conversion rate ranging from 60% to 70%.

UMG Expands Licensing Partnership with Meta to Include WhatsApp

In a significant move last month, Universal extended its global music licensing agreement with Meta Platforms, incorporating WhatsApp for the first time. Both companies are committed to combating unauthorized AI-generated content to ensure fair compensation for artists.

UMG’s second-quarter revenue surged 8.7% year-over-year to 2.93 billion euros ($3.26 billion), with subscription sales climbing 6.5% to 1.38 billion euros ($1.53 billion).

CEO Lucian Grainge emphasized that UMG’s unique business model empowers the company to support its artists and songwriters through diverse revenue streams, bolstered by innovative products and the evolving landscape of streaming services.

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