Music stocks experienced another week of decline, marking the third consecutive week of losses at the end of 2024. The Billboard Global Music Index (BGMI), which tracks 20 key companies in the music sector, fell by 0.6% to 2,155.51, although it has seen a notable year-to-date increase of 40.5%. Over the past three weeks, the index has decreased by 5.5% after a prior rise of 14.6% enjoyed over six weeks. During this week, six companies recorded stock increases, 13 saw declines, and one remained unchanged.
Among the few gainers, Universal Music Group increased by 1.4% to 24.70 euros ($25.75), and Warner Music Group rose 0.9% to $31.45. Meanwhile, iHeartMedia announced a successful completion of a debt exchange that has reduced its long-term debt by $440 million and extended the maturity date of its obligations.
Independent music companies, however, generally suffered losses. Reservoir Media’s stock dropped by 4.3% to $8.86, and Believe fell by 4.0% to 13.78 euros ($14.37). Additionally, major Korean entertainment firms experienced stock declines, with YG Entertainment falling 2.6% and HYBE decreasing by 2.5%.
Spotify, which holds the title as the most valuable company in the BGMI, saw its stock decline by 0.8% to $456.48, marking the third consecutive week of losses. Despite this dip, it remains up significantly—143%—since the start of the year, although it has decreased 9.9% from its all-time high of $506.47 on December 4.
In related news, Tencent Music Entertainment (TME), a Chinese music streaming service, fell 1.8% to $11.72, although it was recently upgraded to a “buy” rating by 86 Research, with a target price of $14.00. TME’s stock has risen 30.1% in 2024.
On the downside, SiriusXM reported the most significant drop of the week, falling 8.6% to $21.13. Its stock has declined 61.4% this year, ranking it among the poorest performers in the BGMI Index.
Overall, music stocks are lagging behind broader market trends globally, with the Nasdaq and S&P 500 indices in the U.S. rising by 0.8% and 0.7%, respectively. The UK’s FTSE 100 also increased by 0.8%, while the Shanghai Composite Index in China rose by 1%. Despite fluctuations in the KOSPI composite index in South Korea, it remained relatively stable.