UMG seals YouTube deal to rule streaming
Universal Music Group has signed a new licensing agreement with YouTube, marking its third major “Streaming 2.0” deal after similar pacts with Spotify and Amazon. Announced during UMG’s Q3 earnings call on October 30, the deal covers both recorded music and publishing across all of YouTube’s music services. Chairman and CEO Sir Lucian Grainge said it includes strong protections for artists and songwriters regarding generative AI content and improves monetization, especially for short-form video.
The announcement follows two other major AI-related moves by UMG in the past 24 hours: a settlement and partnership with AI music platform Udio, and a strategic alliance with Stability AI to co-develop professional AI music tools. Grainge compared the current AI shift to the early days of streaming, calling it the start of a new era that could unlock significant future revenue for creators.
UMG also highlighted global breakthroughs by Japanese artists. BABYMETAL became the first Japanese group to reach the U.S. Top 10, debuting at No. 9 on the Billboard 200. Ado drew 500,000 fans on a worldwide tour, and Fujii Kaze achieved major success with his latest album under Republic Records.
Physical revenue surged 23.1 percent year-over-year to €341 million ($398 million), driven by Taylor Swift’s The Life of a Showgirl and strong Japanese releases. Executives noted that fans increasingly treat vinyl and special editions as collectibles, with 65 to 75 percent of such sales now coming through UMG’s direct-to-fan channels.
