In a strong quarter for music streaming services, China’s Tencent Music Entertainment (TME) was third in the rankings. Its market cap surged 26.3% to $24.1bn from $19.1bn. As a result, Spotify’s share of the combined market cap of the 28 publicly listed music companies tracked by Omdia rose to 28.7% from 24.9%. UMG’s share decreased, to 24.7% from 25.7%, while TME’s share was up, to 11.1% from 9%.
Of the 28 tracked companies, just eight registered an increase in their share prices over the quarter. One (Mdundo) saw no change and the other 19 recorded a negative performance. The Indian music company Saregama was the top performer. Its share price opened on April 1 at INR348.05 ($4.18) and closed on June 28 at INR555.45. The company’s market cap in the quarter increased, to $1.28bn from $878m. At the other end of the scale, Brazilian live music promoter suffered the biggest decline, with its share price tumbling 50.7%, to BRL1.47 ($0.29) from BRL2.98.
The combined market cap of the 28 companies ended June at $217.5bn, compared with $212.4bn at the start of April and $194.2bn at the beginning of the year. Of the total, US-listed companies accounted for 63.3% of the combined end-June market cap total, with Netherlands-listed companies generating 24.7%, and South Korean companies 4.3%. The market cap share for streaming services stood at 41.2%, with record companies/music publishers accounting for 38.8%.
“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% so far this year and has doubled since last October,” Dyson added.
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Omdia, part of Informa Tech, is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
Fasiha Khan [email protected]
SOURCE Omdia