Price rises from the music streamers are providing a healthy tailwind for music companies such as Universal Music Group (EURONEXT:UMG), Deutsche Bank suggests.
All the major music streaming players have announced price increases on their individual subscription plans over the last 12-18 months, notes the German bank.
Allied to continued subscriber growth, this price lever should mean another year of double-digit revenue growth in 2024, while underpinning margin and sales prospects going forward.
“Our proprietary data reveals further room to increase prices that – on top of new streaming monetisation models – could be positive medium-term catalysts for the stock. “
'Buy' is the Deutsche rating on Universal Music with a higher target price of €28 against €26 previously.