UMG STOCK SURGES

Universal Music Group stock rose 11% to €24.21 ($26.63) Thursday, one day after announcing strong results for the second quarter of 2023.

UMG, the first major music company to report quarterly earnings, pulled in more than $1.15b from subscriptions in the quarter, a 10.6% rise over the same period the year prior. Combined with the recent announcements of subscription price hikes at Spotify and YouTube, the speculation is that UMG will be among the prime beneficiaries of the increased prices.

Executives from Spotify and UMG cautioned in calls to stock analysts that the full impact of these increases will not be felt until the fourth quarter of the year.