Music industry earnings for the quarter ended September 30, 2025, revealed strong growth in streaming and live concerts, offsetting declines in legacy radio and some recorded music segments. Companies like Spotify and Universal Music Group posted double-digit revenue increases, while iHeartMedia and Cumulus Media faced revenue drops amid challenging advertising markets. Live events from artists including BTS's Jin and SEVENTEEN drove gains for HYBE and Live Nation.
Overall Trends
A flurry of Q3 2025 earnings reports highlighted a divide in the music landscape. Live music firms like Live Nation and MSG Entertainment saw double-digit growth due to surging concert demand. Streaming platforms also thrived, with Spotify and Universal Music Group (UMG) achieving 12% and 10.2% revenue increases, respectively. In contrast, legacy media companies such as iHeartMedia experienced slight revenue slips, relying on cost-cutting to maintain stability.
Key Company Highlights
Spotify reported 281 million subscribers, up 12%, leading to $5 billion in revenue, a 12% rise. CEO Daniel Ek stated, 'We have the tools we need — pricing, product innovation, operational leverage, and eventually the ads turnaround — to deliver both revenue growth and profit expansion.' UMG's revenue grew 10.2% to $3.5 billion in constant currency, with recorded music subscription revenue up 8.6%.
HYBE's revenue surged 38% to $519 million, boosted by tours from BTS member Jin, SEVENTEEN, and TOMORROW X TOGETHER, though recorded music declined 11.5%. SM Entertainment saw 33% revenue growth to $237.3 million, driven by aespa and NCT WISH concerts and releases.
Sony Music's revenue jumped 21% to $3.65 billion, aided by streaming gains and the anime series Demon Slayer: Kimetsu no Yaiba Infinity Castle. Live Nation's revenue rose 11% to $8.5 billion, with concerts up 11% to $7.3 billion.
Radio Sector Challenges
iHeartMedia's revenue fell 1.1% to $997 million, though digital audio grew 14% to $342 million and podcasts 22% to $140 million. CEO Bob Pittman noted, 'The advertising environment is pretty good.' Cumulus Media's revenue dropped 11.5% to $180.3 million, with broadcast radio down 17.2%. Townsquare Media reported a 7.4% decline to $106.8 million.
Sphere Entertainment Co. benefited from The Wizard of Oz and Backstreet Boys events, posting $263 million in revenue and positive adjusted operating income of $36 million.