Taylor Swift label slumps as subs miss the high notes

Universal Music Group NV’s shares fell as much as 30%, the biggest decline since the company’s initial public offering, after its subscription and streaming revenue growth disappointed investors. 

The world’s biggest record label, which represents artists including Taylor Swift and Drake, said its subscription revenue in recorded music grew 6.9% in constant currency terms in the second quarter, in a statement late on Wednesday. That missed estimates for a growth of 11% in a Bloomberg survey of analysts. 

The stock dropped 28% to €20.36 at 9:47 a.m. in Amsterdam trading on Thursday after earlier declining to a low of €20. 

Streaming revenue, which depends on the advertising market, declined due to a “deceleration in growth at key advertising-based platform partners as well as shortfalls on certain platforms related to the timing of deal renewals,” the company said after market close on Wednesday. 

Universal Music has been pushing for platforms to compensate artists fairly and has advocated for a new streaming royalty model. The company started pulling its music from ByteDance Ltd.-owned TikTok in February after talks to extend a licensing deal failed. In May, it reached a deal with TikTok that included better pay for songwriters and artists, new promotional agreements and protections against AI-generated music.

Earlier this year, it kicked off a reorganization to generate €250 million in annual savings by 2026, including through job cuts.