A new analysis from Omdia has revealed that Spotify overtook Universal Music Group (UMG) to become the biggest music industry company in market capitalization terms in the second quarter of 2024. According to Omdia’s Music Industry Sharewatch, 2Q24, Spotify’s market cap at the end of June stood at $62.5bn compared with $53.7bn for UMG. Spotify’s market cap increased 18.2% from $52.8bn at the end of the first quarter, while UMG’s edged down 1.5% from $54.5bn. best music streaming service 

First-quarter revenue of UMG rose 7.9 percent to €2.59 billion. Revenue of Spotify grew 20 percent to €3.6 billion in January-March 2024.

China’s Tencent Music Entertainment (TME) was third in the market cap rankings. Its market cap surged 26.3 percent to $24.1 billion from $19.1 billion. Tencent Music Entertainment’s revenue reached $937 million in the first quarter of 2024, representing a decrease of 3.4 percent.

Spotify’s share of the combined market cap of the 28 publicly listed music companies tracked by Omdia rose to 28.7 percent from 24.9 percent. UMG’s share decreased, to 24.7 percent from 25.7 percent, while TME’s share was up, to 11.1 percent from 9 percent.

The market cap of Saregama, an Indian music company, increased to $1.28 billion from $878 million.

The total market cap of the 28 companies tracked by Omdia ended June at $217.5 billion, compared with $212.4 billion at the start of April and $194.2 billion at the beginning of the year.

Of the total, US-listed companies accounted for 63.3 percent of the combined end-June market cap total, with Netherlands-listed companies generating 24.7 percent, and South Korean companies 4.3 percent.

The market cap share for streaming services stood at 41.2 percent, with record companies/music publishers accounting for 38.8 percent.

“Spotify’s impressive second quarter performance is a continuation of its success from the first quarter of this year,” said Simon Dyson, Senior Principal Analyst at Omdia. “The share price has risen almost 70 percent so far this year and has doubled since last October.” best music streaming service