Universal posts another strong streaming quarter

Universal Music Group has posted its Q1 2017 results. Quarterly revenue rose 12.7% on a constant currency basis, growing to 1.28 billion euros ($1.36 billion) from almost 1.12 billion euros ($1.22 billion) in Q1 2016. Digital revenue for the period reached 622 million euros ($659.3 million), up from 504 million euros ($551.4 million) in the year-ago period. Digital held a 61.2% share of the label’s total results.

Streaming was responsible for 46% of digital revenue, while downloads had a 15.2% share. Streaming revenue rose 49% for the quarter to 467 million euros ($495 million). Download revenue dropped 21.3% to 155 million euros ($164.3 million).

Even though streaming was a component of UMG’s performance, the label did renew its calls for some legal changes to address the “value gap” issue that has seen mention in many other quarterly earnings reports from the music industry. “The European Commission has recognized the existence of the value gap and has proposed solutions that are now working their way through the European Parliament and the European Council,” the company said. “However, an appropriate legal framework needs to be established worldwide.”