Universal Music Group (UMG), the world’s largest music label, has reported a slowdown in subscriber growth for music streaming services, according to a Times of India report citing Bloomberg.
UMG’s Chief Financial Officer, Boyd Muir, highlighted disappointing revenue from streaming services, attributing the decline to major platforms like Apple Music and Amazon Music struggling to boost global adoption. This downturn has led to a 30 percent drop in UMG’s share value.
Despite the current setback, UMG remains optimistic about a recovery in the near future. In response, music companies are implementing cost-cutting measures, including layoffs and restructuring. New pricing tiers for streaming services are also expected to support growth.
Apple Music, which has not updated its subscriber figures since 2019, is experiencing this trend alongside competitors such as Spotify and Amazon Music, which are also witnessing stagnating growth. The industry is actively exploring new revenue streams and strategies to navigate these challenges.
