Spotify Q2 300M Subs + EPS Miss, WMG Revenue Hits $1.86B - Wed, August 5

Email us hereSpotify and Warner Music Group dominated Wednesday's headlines with major earnings reports, while UMG's $467M Spotify stake sale sent ripples through artist royalty conversations. AI continued to reshape policy and product, from South Korea's KOMCA reversing its ban to Spotify pushing forward on AI remixes without full major-label sign-off. Deals & M&A • WMG Q3 2026 revenue up 10% to $1.864B; operating income surged 80% to $305M. • UMG sold Spotify equity for $467M; artists set to receive ~$131M non-recoupable. • Sony Music promotes 21-year veteran Stephanie Yu to Global General Counsel and EVP. Lawsuits & AI • South Korea's KOMCA lifts AI music ban; AI-assisted works now eligible as of August 3. • Rapper Fenix Flexin denies AI-generated single amid chart-eligibility committee scrutiny. Streaming & Tech • Spotify Q2: 300M Premium subs, €4.8B revenue, but EPS miss drops shares 5.9%. • Spotify Co-CEO says no full major-label deal needed to launch AI covers and remixes tool. • Spotify testing "skip ahead" button for podcast ads, threatening seller ad revenue. • YouTube Music US Premium subscribers jumped 45% YoY, putting rivals on notice. Live & Touring • Ticketmaster acquires Uruguay's RED UTS, expanding its network to 35-plus markets. Also Today • Spotify AI DJ now used by 25% of all Spotify users, per Q2 earnings call. • Spotify launches Audiobooks+ tier and Narrated Articles from Rolling Stone, Vogue, Wired. • Nearly 100,000 fan tickets claimed via Spotify's Reserved ticketing feature in the US. • Harris Poll: over half of Gen Z reports weekend loneliness driven by financial anxiety. Five minutes, six categories, zero fluff.