Universal Music Group's third-quarter revenue rises 12.3% as subscription growth speeds up

In constant currency, revenue grew 11.7%, or 5.3% excluding Downtown, the company said. Recorded music subscription revenue rose 19.2% in constant currency, or 9.5% excluding Downtown, which UMG credited to wholesale price increases and subscriber growth. Physical sales rose 17.4%, with strength in North America, Japan and Europe.

On the earnings call, CEO Lucian Grainge called for streaming services to pay less for AI-generated tracks than for music by real artists, The Hollywood Reporter reported. UMG named Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles among its top sellers.

Why it matters: UMG is the world's largest music company, and its results are a gauge of how streaming price increases and the spread of AI-made music are shaping the industry's revenue.