The life cycle of music revenue has grown longer in the streaming market, explained Kriss Thakrar, an analyst with Midia research group. “When songs and recording can provide consistent and enduring revenues, those who control these assets and hold good market share are well placed to put themselves in a position to both benefit from and drive the market,” he told Quartz.

🎧 For more intel on the latest music trends, listen to the Quartz Obsession podcast episode on disco. Or subscribe via: Apple Podcasts | Spotify | Google | Stitcher.

UMG said in its prospectus that it believes this is only the beginning of the digital music boom, and that “even with its strong growth in recent years…streaming is still in the early stages of global penetration.” Not all musicians are happy about this; in the US, the Union of Musicians and Allied Workers has mobilized against Spotify, in protest at its allegedly unfair business practices that they say deprive them of an income.

UMG also outlined a vision for bringing more users online through technological innovations such as voice-controlled speakers and connected cars, as well as licensing streaming music for lifestyle categories such as digital health and fitness.

“This wave is taking place on a variety of platforms,” UMG chief executive Lucian Grange told The Guardian of the rise in digital streaming, “some of which were not even on the radar just a few years ago.”

In 2020, the company represented four of the top five artists of the year on Spotify, and nine of the top 10 highest-grossing recording artists, according to the International Federation of the Phonographic Industry. And now, with its IPO, UMG is in a good position to take advantage of the revenue growth opportunities from licensing agreements with streaming services.

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