Universal Music Group (UMG) recently released its 2024 annual report, revealing a year of remarkable achievements and strategic advancements.
This comprehensive 284-page document offers fascinating insights into the state of the global music industry, UMG’s ongoing investments, and its forward-thinking approach to talent, technology, and catalog acquisition.
Here are some key takeaways from the report that highlight the company’s success and the direction in which the music business is headed.
1. The Growing Power of Catalog Sales
In 2024, catalog sales—defined as music older than three years—accounted for an impressive 66% of UMG’s recorded music revenue. This reflects a growing trend where older music continues to generate steady income, surpassing the 34% contributed by newer releases.
This shift marks a significant change from previous years when the split between catalog and frontline (new) releases was much closer. For instance, in 2018, catalog music made up just 54% of UMG’s recorded music revenues, showing how deeply catalog sales are now embedded in the company’s business model.
2. North America Drives the Bulk of Revenue
Despite its global footprint, UMG’s operations in North America remain a major revenue driver, accounting for 52% of its recorded music income in 2024. This is a slight increase from 2023, driven by what the company describes as its best U.S. performance in six years. The report points to UMG’s recent restructuring of its U.S. label structure, which brought greater operational efficiency and agility—key factors in the company’s stronger-than-expected performance in the region.
3. Expanding the Music Publishing Catalog
UMG’s music publishing division has seen considerable growth, with the company now managing around 5 million songs—up by 500,000 compared to 2023. This significant expansion of its catalog has contributed to a 9% year-on-year growth in publishing revenues, which reached USD $2.30 billion in 2024. This ongoing investment in music publishing demonstrates the company’s strategy of securing long-term assets to build a more diverse and robust revenue stream.
4. Diversity in Artist Revenue
One of the most notable aspects of UMG’s business model is its broad artist base. Contrary to the common belief that the company relies heavily on superstar acts, UMG’s top 50 artists only accounted for 24% of the total recorded music revenue in 2024. This shows that UMG’s success isn’t tied to a small handful of megastars, but rather, it derives from a large, diverse group of artists across various genres.
5. Major Investments in Catalog Acquisitions
UMG significantly ramped up its spending on catalog acquisitions in 2024, investing a total of USD $288 million to purchase music publishing and recorded music catalogs. This was a considerable jump from the previous year’s investment of USD $193 million, reflecting UMG’s ongoing strategy of building a substantial catalog portfolio. In addition to catalog acquisitions, the company also spent hundreds of millions on strategic investments, including purchasing stakes in several prominent companies and music assets.
6. A Growing Global Workforce
As of the end of 2024, UMG employed over 10,000 people across more than 60 countries. While the total workforce grew slightly from the previous year, there was a slight reduction in staff numbers in North America. Nonetheless, the United States remains UMG’s largest employment base, with over 3,500 employees. Notably, women made up 51.9% of UMG’s global workforce, highlighting the company’s commitment to gender diversity.
7. Increased Investment in Artist Development
UMG’s commitment to nurturing new talent is evident in its rising artist-related costs, which reached USD $5.9 billion in 2024. This figure represents a significant portion of the company’s overall revenue, underscoring its focus on long-term artist development and support. The company continues to invest in artist royalties, advances, and unrecouped accounts to ensure its roster remains strong and diverse.
8. Direct-to-Consumer Strategy Pays Off
UMG has made impressive strides in growing its direct-to-consumer (D2C) capabilities. The company’s “owned audience” now exceeds 200 million fans globally, a huge increase thanks to the expansion of artist stores and merchandise sales on UMG’s platforms. This push to build and engage a direct relationship with fans is paying off, with the D2C business becoming a key part of UMG’s growth strategy.
UMG’s 2024 annual report paints a picture of a company that is not just thriving in the modern music landscape but is also shaping the future of the industry. With its investment in catalog acquisition, artist development, and cutting-edge technology, the company is positioning itself as a leader in an increasingly competitive market.
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