From HYBE's new label services business to Sony and Warner's calendar Q2 earnings... it's MBW's Weekly Round-Up

HYBE Launches U.S. Label Services Business
HYBE, the company behind K-pop giants BTS and SEVENTEEN, is undergoing a major restructure under its new CEO, Jason Jaesang Lee. As part of its "HYBE 2.0" strategy, the company is entering the competitive label services business in the U.S., providing distribution and services for independent artists. This move is seen as a significant step in expanding HYBE’s global influence.

Sony’s Q2 Financials: $2.54 Billion in Revenues
Sony’s global music division, including recorded music and publishing, reported $2.54 billion in revenues for calendar Q2 2024, an 11.4% year-on-year (YoY) increase. Its recorded music revenues reached $1.92 billion, while music publishing revenues grew by 13.3% to $621.3 million. Streaming revenues also saw a 5% YoY growth.

Warner Music Group Q2: Streaming Boosts Revenue
Warner Music Group (WMG) generated $1.55 billion in Q2 2024. Despite losing $26 million from the termination of a BMG distribution deal, WMG’s subscription streaming revenues rose 13.7% YoY, bucking the industry trend of streaming growth slowdowns seen by other major labels like Universal and Sony.

Warner Music Bucks Streaming Revenue Trends
In contrast to the slower growth in streaming revenues at Universal and Sony, Warner Music Group reported a significant 13.7% YoY increase in subscription streaming revenues, providing some optimism for investors concerned about the music industry's long-term growth prospects.

Spotify vs. Universal: Tensions Over Free Tier
A complex power struggle between Spotify and Universal Music Group (UMG) is in focus. UMG continues to exceed financial expectations, with Q2 revenues up 11% YoY. However, there are concerns that UMG may pressure Spotify to limit its free-tier services, which could impact Spotify’s user base.