Tencent Music, Spotify & Different Streamers Lead Music Shares as Legacy Broadcasters Fall Brief


Music shares’ efficiency this week was a microcosm of the leisure business this decade, with streaming corporations making up the highest 4 performers whereas legacy broadcasting shares completed on the backside of the heap.

Chinese language music streaming firm Tencent Music Leisure rose 6.0% to $10.95 following the corporate’s encouraging full-year earnings outcomes on Tuesday (Mar. 19). Though whole income declined 2.1%, the web music a part of the enterprise is booming. Subscription income from QQ Music, Kuwo Music and Kugou Music elevated 39.1% to $1.7 billion whereas the variety of subscribers grew by 18.2 million to 106.7 million. Tencent Music shares reached a 52-week excessive of $11.80 on Thursday (Mar. 21) however dropped 4% on Friday (Mar. 22) following information that Zhenyu Xie, president/chief expertise officer, tendered his resignation. Xie will likely be changed on the board of administrators by CFO Shirley Hu

Spotify gained 3.9% to $264.95, bringing its year-to-date enchancment to 41.0%. On Tuesday, the streaming firm launched its fourth annual Loud & Clear report, a breakdown of the prior yr’s royalty payouts. In 2023, the variety of artists who obtained at the least $10,000 from Spotify elevated 16% to 66,000 — 2.7 instances greater than the quantity who obtained that a lot in 2017. The variety of artists who earned $1 million or extra from Spotify rose 18% to 1,250. 

Two smaller corporations posted even bigger positive aspects. Anghami shares rocketed 56.8% to $1.74 this week and reached as excessive as $2.20 after a regulatory submitting revealed that Saudi media firm MBC Group had amassed practically a 14% stake within the Abu Dhabi-based music streamer. The funding helped give Anghami some respiration room after the Nasdaq warned in October that the inventory confronted delisting for closing below $1 for the prior 30 days. Anghami closed under $1 from Feb. 1 to Mar. 7 however has closed above $1 since Mar. 15. 

LiveOne jumped 10.9% to $2.04 after asserting on Monday (Mar. 18) that it expects report quarterly income with the assistance of elevated Tesla gross sales, 30 new podcasts and greater than $2 million in month-to-month recurring income from purchasers in its B2B streaming enterprise. Moreover, the corporate revealed that it repurchased $250,000 price of inventory within the earlier 30 days and extinguished $3 million of payables of PodcastOne, the podcast firm it spun off in September 2023.  

Streaming corporations’ positive aspects helped the Billboard World Music Index rise 1.3% to a report 1,719.66 this week, breaking a two-week skid and topping the earlier report of 1,715.81 set the week ended Mar. 1. The 20-company index had a fair variety of winners and losers. 

Main indexes rose to new heights after the U.S. Federal Reserve indicated the central financial institution nonetheless anticipated three rate of interest cuts in 2024 regardless of a latest enhance in inflation. In the US, the Nasdaq composite rose 2.9% to 16,428.82, a brand new closing excessive, and reached an intraday excessive on Thursday. The S&P 500 completed the week up 2.3% to five,234.18, even after falling 0.1% on Friday. In the UK, the FTSE 100 gained 2.6% to 7,930.92. South Korea’s KOSPI composite index rose 3.1% to 2,748.56. China’s Shanghai Composite Index fell 0.2% to three,048.03.   

Broadcasters have been on the reverse finish of the spectrum. The index’s greatest decliner was iHeartMedia, which fell 7.7% to $1.91. After a sluggish yr for nationwide promoting, iHeartMedia executives have predicted 2024 will likely be “a restoration yr” and first-quarter income decline will likely be much less extreme than earlier quarters. Possibly so, however buyers have dropped its inventory 28.5% yr so far. 

Two different radio corporations have been among the many backside 4 shares. Cumulus Media shares fell 6.6% to $3.41 and are down 35.9% within the first 12 weeks of the yr. Cumulus’ income was down 11.4% in 2023, and CEO Mary Berner warned buyers in February that “uneven” advert demand restricted its means to forecast in 2024.

SiriusXM, which is optimistic about its redesigned streaming app, dropped 4.2% to $3.88 and has fallen 29.1% this yr. Liberty Media, which owns 84% of SiriusXM’s excellent shares, plans to merge the SiriusXM inventory with the Liberty SiriusXM observe inventory later this yr. 


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