The three main music firms collectively generated over $20bn final 12 months (that’s over $2m per hour)

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The MBW Overview is the place we intention our microscope in the direction of a number of the music biz’s largest latest goings-on. This time, bolstered by Warner Music Group‘s newest fiscal outcomes, we get out our calculator for a giant slice o’ math. The MBW Overview is supported by Instrumental.


Need to understand how massive final 12 months was for the three main music firms? Gargantuan.

Final summer time, MBW predicted that Common Music Group, Sony Music Group (together with Sony’s music pursuits in Japan) and Warner Music Group would – mixed – generate greater than $20 billion in annual revenues in 2021.

We are able to now affirm, through a lot of number-crunching, that this was certainly the case. ($20 billion in a 12 months, stat followers, is the equal of turning over round $2.3 million each hour.)

However right here’s the factor: The majors topped the $20 billion milestone even with out Common Music Group’s calendar This fall 2021 earnings, that are attributable to be revealed subsequent month.

Right here’s how the ‘Massive Three’ did it:

  • Warner Music Group (which introduced its calendar This fall figures right now) generated USD $5.58 billion throughout its world music publishing and recorded music divisions in calendar 2021, in line with MBW’s calculations;
  • Sony Corp (which introduced its calendar This fall figures final week) generated USD $7.49 billion throughout its world music publishing and recorded music divisions in calendar 2021, in line with MBW’s calculations
  • Common Music Group generated USD $7.21 billion throughout its world music publishing and recorded music divisions in simply the first 9 months of 2021 – not together with This fall – in line with MBW’s calculations;
  • All of that mixed involves a candy, candy $20.28 billion.

Based mostly on its efficiency throughout earlier quarters of 2021 (and the adjoining performances of Sony and Warner within the remaining quarter of 2021) MBW expects that Common Music Group will publish between $2.5 billion and $3 billion in complete revenues for calendar This fall subsequent week.

On the greater finish of that vary, this could imply the three main music firms (throughout music publishing and recorded music operations) collectively generated over USD $23 billion in 2021, or roughly $2.6 million each hour.

Beneath MBW digs deeper into the efficiency of every main music firm with the info we’ve got at hand to this point…


Warner Music Group

Warner Music Group had a storming 2021.

We all know this as a result of the foremost right now (February 8) revealed its fiscal outcomes for calendar This fall (fiscal Q1), with complete revenues up 20.9% YoY to $1.614 billion within the quarter.

With Warner’s newest numbers in our arms, MBW has additional crunched the figures to calculate what WMG turned over within the calendar 12 months of 2021:

  • Based on MBW calculations, Warner Music Group generated $5.58 billion in complete revenues final 12 months, throughout its music publishing and recorded music operations mixed. That quantity was up 20.7% year-on-year – or by $955 million – at fixed foreign money;
  • WMG’s recorded music division noticed a 20.6% YoY leap in fixed foreign money revenues in calendar 2021 (to $4.77bn), whereas its music publishing division elevated turnover 20.9% YoY to $815 million;
  • WMG’s recorded music streaming revenues jumped up 24.3% YoY to $3.12 billion in calendar 2021.



Sony Corp logo

Sony

As MBW revealed final week, Sony’s music divisions (Sony Music Group plus its Japan-based music firms) collectively generated $7.49 billion in 2021 throughout music publishing and recorded music.

  • That $7.49bn determine (at USD-level fixed foreign money) was up 23.9% year-over-year, or by a good-looking $1.44 billion versus the equal determine from 2020;
  • Sony’s world recorded music operation posted revenues of $5.77 billion in calendar 2021, in line with MBW’s calculations – which represented a leap of $1.16 billion, or 25.2%, YoY.
  • Inside that quantity, Sony’s recorded music streaming revenues grew by 33.0% YoY – or by $978 millionto hit $3.94 billion;
  • Sony’s world music publishing operation additionally had a banner 12 months: In calendar 2021, it generated $1.72 billion, up 19.7%, or by $284 million, on the equal determine from 2020.


Universal Music Group

Common Music Group

As talked about, we don’t but know what Common Music Group’s turnover regarded like within the remaining quarter of final 12 months (UMG will reveal this data on March 3.)

What we do already know is that UMG posted a stellar opening 9 months of 2021, throughout the primary three fiscal quarters of the 12 months:

  • Within the first 9 months of 2021, in line with MBW’s calculations, Common Music Group generated $7.21 billion in complete revenues.
  • That quantity was up by $1.30 billion – or 21.9% – on the $5.91 billion in complete revenues that Common Music Group posted within the equal nine-month interval of 2020;
  • UMG’s recorded music revenues (inc merchandise) within the 9 month interval have been up 23.2% YoY (to $6.10bn), whereas music publishing revenues have been up 14.3% YoY (to $1.11bn).

If Common can repeat its Q3 2021 firm efficiency in This fall 2021, it is going to end the 12 months with $9.77 billion in complete annual income.

Nonetheless, each Sony and Warner considerably outperformed their calendar Q3 efficiency in calendar This fall 2021 (Sony’s mixed recorded music and publishing revenues, for instance, have been up 13.9% quarter-on-quarter).

If Common follows this sample – and each chance suggests it is going to – it’s potential that 2021 might have been the primary ever $10 billion income 12 months in Common Music Group’s historical past.



A quick notice on foreign money calculations on this evaluation: (i) Warner Music Group’s 2021 revenues are offered of their root foreign money of USD. Fixed foreign money figures for 2020, as revealed in WMG investor paperwork, have been used for YoY comparisons; (ii) Sony’s revenues are calculated in fixed foreign money USD, utilizing prevailing quarterly Yen-USD charges as revealed in Sony’s investor documentation; (iii) Common’s revenues are calculated in fixed foreign money USD, utilizing prevailing quarterly EUR-USD charges as revealed in Vivendi investor documentation (together with Q3 2021).


Instrumental logo

The MBW Overview is supported by Instrumental, one of many music business’s main progress groups for impartial artists. Instrumental makes use of information science to determine the quickest rising impartial artists on the planet after which supply funding, premium distribution and advertising assist to take them to the subsequent degree, with out taking their rights.Music Enterprise Worldwide

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