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

Streaming 2.0 vision and pricing evolution

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

• Music subscription remains under-monetized compared to video, with significant runway for further price increases and minimal churn 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 partnerships and product innovation

• New AI deals, notably with Udio, focus on artist rights, ethical training, and hyper-personalized consumer experiences.

• AI products emphasize direct fan-artist interaction, with 30-40% of interested fans gravitating toward these features.

• Broad artist participation expected on an opt-in basis, with strong support from the artist community and critical mass for product launches.

• AI seen as additive to music consumption, not a substitute for traditional artist-generated music.

Super fan tiers and new monetization models

• Super premium tiers remain a focus, with AI now central to feature innovation and consumer proposition.

• Partnerships with Stationhead and EVEN enable new super fan experiences, such as exclusive releases and interactive events.

• Ongoing belief in a sizable market for deeper fan engagement, with willingness to pay more.