Universal Music Group (UMG) BNP Paribas Exane TMT Conference summary

Streaming 2.0 vision and pricing strategy

• Shift from volume-only to volume plus rate-based growth, with major DSP agreements and rate increases rolling out through 2026.

• Music subscriptions remain under-monetized compared to video, with significant headroom for price increases and minimal churn observed after recent hikes.

• Streaming 2.0 framework implemented in renewals with Spotify, Amazon, YouTube, and others, with most rate increase impacts expected from now into 2026.

AI innovation and artist engagement

• AI partnerships, notably with Udio, focus on artist rights, ethical training, and hyper-personalized fan experiences, with new products expected later this year.

• Consumer demand centers on direct artist interaction, not simulated artists, with 30–40% of AI-interested fans gravitating to these features.

• Artist participation in AI products will be opt-in, with strong early support and critical mass expected at launch.

Super fan and premium tier evolution

• Super premium tiers remain a focus, with AI now central to feature innovation; China’s SVIP adoption cited as proof of concept.

• Super fan experiences are being delivered both through DSPs and standalone partners like Stationhead and EVEN.