Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

UMG shares rally after new multi-year pact with Spotify

admin by admin
January 27, 2025
in Stock
0
UMG shares rally after new multi-year pact with Spotify
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

Investing.com — Universal Music Group (AS:UMG) and Spotify (NYSE:SPOT) have announced a new multi-year deal for recorded music and publishing, the companies announced in a Sunday statement.

The agreement includes a direct license between Spotify and UMG, spanning the US and several other countries, they said.

“Under the new agreements, UMG and Spotify will collaborate closely to advance the next era of streaming innovation,” the statement writes.

“Artists, songwriters and consumers will benefit from new and evolving offers, new paid subscription tiers, bundling of music and non-music content, and a richer audio and visual content catalog.”

UMG shares jumped 5% in European trading while Spotify’s US-listed shares fell 3% in premarket trading Monday.

Morgan Stanley (NYSE:MS) analysts said the early renewal of the UMG-Spotify partnership represents “a positive catalyst” for the world’s largest music label “and a broader affirmation of the music industry’s alignment to improve monetization throughout the value chain.”

“We see the early renewal of the deal, along with heavily-trailed prospects for super-premium tiers at digital streaming platforms (DSPs), as helping to underpin the average revenue per user (ARPU) element within UMG’s guidance for 8-10% subscription growth.”

Spotify’s CEO Daniel Ek said that the partnership would drive innovation, enhancing the appeal of music subscriptions to audiences worldwide.

Over the past year, the Swedish streaming giant has reduced its workforce, scaled back its podcast offerings, and cut marketing expenses as part of efforts to improve profitability.

Moreover, it has increased the prices of its US subscription plans to leverage strong demand for its premium services.

Earlier this month, UMG announced that Pershing Square, led by billionaire Bill Ackman, has requested a US secondary listing for the record label. In November, Ackman expressed plans to relocate both his investment firm and UMG, but his earlier request to delist from Euronext (EPA:ENX) Amsterdam was denied.

Pershing Square, which reduced its UMG stake to 7.48%, can request a US listing if it sells at least $500 million worth of shares. However, UMG argued this does not require delisting from Amsterdam or a US relocation.

This post appeared first on investing.com

Previous Post

European tech shares tumble as China’s AI push spooks investors

Next Post

Italy’s MPS shares fall ahead of Mediobanca board meeting on bid

admin

admin

Next Post
Italy’s MPS shares fall ahead of Mediobanca board meeting on bid

Italy’s MPS shares fall ahead of Mediobanca board meeting on bid

Trending News

How billionaire Caltagirone could influence Italy’s banking M&A wave

How billionaire Caltagirone could influence Italy’s banking M&A wave

February 11, 2025
Tonkeeper Pro adds gasless USDT-TRC20 support

Tonkeeper Pro adds gasless USDT-TRC20 support

March 15, 2025
Long MPTI:  Solid Growth and Promising Price Action Indicate a Bright Future

Long MPTI: Solid Growth and Promising Price Action Indicate a Bright Future

December 16, 2024
Subscribe to Insightful Word


    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025

    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025

    Latest News

    • China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll
    • FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more
    • Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.