Universal Music Group (UMG) chairman and CEO, Lucian Grainge, has expressed his support for Spotify’s decision to raise prices for its premium paying subscriber base. Grainge believes that this will help boost streaming audio revenues for UMG’s artist rosters. He also commended YouTube Music for raising its prices as well.
While Grainge welcomes the price increase, he emphasized that it is important to ensure that real artists with real fan bases are fairly compensated. He mentioned ongoing talks between major music labels and streaming platforms to address this issue and ensure that everyone is rewarded for the engagement that artists generate.
Grainge highlighted the improved alignment between labels and music platforms, which allows for better compensation for artists. He expressed his satisfaction with the progress made with platform partners, even though there is still work to be done.
The latest financial quarter saw an increase in music streaming platform prices, resulting in a 10.6% year-over-year growth in recorded music subscription revenue for UMG. This positive trend followed Spotify’s announcement of a subscription price increase earlier in the week.
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UMG, along with other major label partners of Spotify, will benefit from the expansion of streaming audio revenues as the platform pays 70% of subscription and advertising fees to rights holders. However, Grainge reiterated that the current streaming model needs to do more to compensate music artists adequately and increase engagement with their fan bases, as they are still undervalued.
Grainge emphasized his goal of promoting an environment where real music can thrive amidst the noise. He believes that artists should not be overshadowed by the mass production of music.
In addition to discussing streaming revenues, Grainge also touched on the topic of artificial intelligence (AI). UMG recently signed a deal with sound wellness company Endel, allowing its artists to use proprietary AI technology to create mood music soundscapes for activities like sleep and relaxation. The partnership aims to respect creators’ rights, and UMG plans to roll out the first wave of soundscapes under the new agreement.
Grainge mentioned that UMG utilizes AI to identify audiences for artists and enhance the quality of immersive sound and other music experiences. This demonstrates UMG’s commitment to embracing technology to benefit both artists and listeners.
In conclusion, Lucian Grainge, chairman and CEO of UMG, supports Spotify and YouTube Music’s decision to raise prices for their premium subscribers. He believes this will boost streaming audio revenues and ultimately benefit UMG’s artists. Grainge also emphasizes the need to ensure fair compensation for artists and increase engagement with their fan bases. Additionally, he highlights UMG’s partnership with Endel for the creation of AI-generated soundscapes and its utilization of AI technology to enhance music experiences. Overall, Grainge aims to create an environment where real music can thrive and artists receive the recognition they deserve.
