Record giant Universal Music Group (UMG) is enjoying one of the strongest quarters in its recent history. The company reported 8.7% growth in subscription revenues in the third quarter, beating analysts’ forecasts and consolidating its position as a global leader in the music industry.
This precedent-setting upturn for the entertainment sector was driven by two cultural phenomena that have dominated the global charts: Taylor Swift’s new album, The Life of a Showgirl, and the soundtrack to the animated K-pop film Demon Hunters, both under the Universal label.
According to Bloomberg, Universal Music Group’s total revenues grew by 10% at constant exchange rates, reaching 3.02 billion euros. In addition, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached €664 million, slightly above average market estimates.
The increase in subscription and sales revenues reflects not only the convening power of established artists, but also UMG’s ability to capitalize on cultural phenomena that transcend music, integrating film, technology and marketing into a global strategy.
Physical sales also experienced notable growth of 23%, driven by Taylor Swift releases and strong demand for music products tied to popular franchises.
Taylor Swift, the force behind streaming and physical sales
Taylor Swift continues to be one of Universal’s most important drivers. Her album The Life of a Showgirl generated significant impact on both digital platforms and traditional sales.
The album achieved strong numbers in key markets in the U.S., Europe and Asia, cementing Swift as the most influential artist in UMG’s catalog. Her strategy of multiple releases, collectible editions and international touring also drove sales of physical product, vinyl and merchandising, strengthening the label’s revenues.
The second big mover of the quarter was the soundtrack for the film Demon Hunters, an animated production that fuses anime aesthetics with K-pop music. The film, distributed by Netflix, has spent 15 consecutive weeks in the platform’s global Top-10, setting a new standard for film-music collaborations.
The success of Demon Hunters has demonstrated how audiovisual content can generate direct synergies with record industry revenues by boosting consumption on music streaming platforms and opening up opportunities in other sectors.
The phenomenon has also translated into a wide network of commercial collaborations, such as the alliance with Kellogg’s, which developed products inspired by the film. Such partnerships reinforce the value of intellectual properties that combine entertainment, music and mass consumption.
At the corporate level, Universal Music Group is preparing for its IPO in the United States, with the aim of expanding its financial reach and attracting new investments. The company seeks to take advantage of the valuation of its assets and establish agreements with strategic funds such as Pershing Square, which would strengthen its position as a key player in the monetization of global entertainment.
In parallel, UMG has adopted a strategy of technological collaboration with artificial intelligence companies, including Spotify, to develop tools that respect copyrights and offer exclusive experiences for superfans. These initiatives include premium features and personalized content that expand the relationship between artists and audiences.
The combined success of Taylor Swift and Demon Hunters is evidence of a profound shift in the way audiences consume music and entertainment. It is no longer just about listening to songs or watching movies, but about integrated storytelling experiences that combine music, image and strategic marketing.
Universal Music Group demonstrates its ability to adapt to market trends and lead an industry that is constantly redefining itself. With an approach that unites technology, art and popular culture, the label reaffirms its role as a pioneer in the creation of global entertainment ecosystems.
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