Universal Music Group (UMG) unveiled robust Q3 financial results, showing a 3.3% YoY increase in revenues, amounting to €2.75 billion. When adjusted for constant currency, the growth expands to 9.9%. Yet, it was UMG’s Chairman and CEO, Sir Lucian Grainge’s remarks during the earnings call that sparked industry-wide attention.
Grainge addressed the criticism surrounding UMG and their pursuit of an ‘artist-centric’ streaming payout model, particularly in partnership with Deezer. He firmly defended the approach, emphasizing its positive impact on artists, streaming platforms, and fans. In a more pointed tone, he criticized those skeptical of artist-centric, labeling them as proponents of undesirable content and fraudulent practices.
Grainge’s comments come in response to concerns raised by entities such as Believe, Impala, Aim, Beggars Group, Secretly Distribution, Wagram Stories, and Because Music, although he didn’t specify any particular critics.
He clarified that artist-centric is a flexible approach with adaptable principles designed for various platforms and DSPs. UMG’s unwavering support for the model is underscored by several high-profile artists like The Beatles, The Rolling Stones, Taylor Swift, Olivia Rodrigo, Eminem, Elton John, and Queen. Grainge emphasized that these artists are not associated with subpar content and are not exploiting the system.
In conclusion, UMG’s Q3 financial performance remains strong, with revenues on an upward trajectory, and Grainge’s unwavering support for artist-centric streaming models demonstrates a commitment to the creative community and quality content.