Spotify just overtook UMG as the world’s most valuable music company
The power is shifting away from majors. Universal Music Group just lost its position as the most valuable music company to Spotify.
Global analyst company Omdia just published their Music Industry Sharewatch, 2Q24 report, which details the market capitalization of the top 28 publicly listed music companies around the world as of the end of Q2 2024.
This report shows that since the last quarter, Spotify’s market cap has increased by 18.2% from $52.8 billion to $62.5 billion. On the other hand, Universal Music Group’s market cap has decreased by 1.5% from $54.5 billion to $53.7 billion.
Spotify’s impressive second quarter performance is a continuation of its success from the first quarter of this year. The share price has risen almost 70% so far this year and has doubled since last October.
Simon Dyson, Senior Principal Analyst, Omdia
Chinese music service Tencent Music Entertainment comes in at third place. Over the last quarter, TME surged by 26.3% from $19.1 billion to $24.1 billion.
Spotify aren’t just doing well on their own. They’re taking a larger share of the competition. Spotify’s share of the 28 publicly listed music companies rose from 24.9% to 28.7%. UMG decreased their share from 25.7% to 24.7%. Tencent increased from 9% to 11.1%.
According to Omdia, the industry is doing well in Q2 2024. All 28 companies hold a combined market cap of $217.5 billion, up from $212.4 billion at the beginning of Q2 and $194.2 billion at the beginning of the year. US-listed companies accounted for 63.3% of the market, while The Netherlands hold a 24.7% share and South Korean-listed companies account for 4.3%. Streaming services are responsible for 41.2%. Record companies and music publishers claim 38.8%.