The Biz: Worrisome Trends In Recorded Music, StubHub’s IPO Target, WME Bets On Kygo

Recorded Music Revenues Show Troubling Trend

Revenues from recorded music hit $5.59 billion in the first half of 2025, according to the Recording Industry Association of America, growth of less than 1% year-over-year.

The meager gains come despite strong growth in premium streaming subscriptions. The increase of 6.3 million paid subscribers was far more robust than last year, but the paltry overall number indicates that even robust growth in paid subscriptions is fighting uphill with headwinds in other sectors.

Free streaming revenues — primarily ad-based streaming, but also including social media shares — were off 2.9% from the first half of 2024. Non-premium subscriptions — those that offer a more limited selection — were down 0.4%. Other streaming — which includes licensed streaming radio-style services — were off 5.3%. Still total streaming revenue climbed 2.3% in the first six months of the year to $4.68 billion.

Troublingly, given indications that younger generations might be strong consumers of physical formats, revenues from physical formats were down nearly 6% from last year. Vinyl was off 1% and CDs — by now in a long decline — dropped steepily at 22%. Vinyl has now outsold CDs for five straight years and accounts for nearly 75% of all physical sales.

The revenue stagnation comes as there are increasing signs that streaming — especially paid subscription streaming — may be plateauing as Gen Z seems to be cool to the services, happier to consume music physically for via sites like YouTube rather than through Spotify and its competitors.

StubHub Eyes $9B Valuation From IPO

Despite booking bottom-line losses in the run-up to its long-awaited initial public offering, StubHub is seeking a $9 billion valuation, the secondary seller told the Securities and Exchange Commission in its latest filing.

StubHub intends to offer an initial tranch of 34 million shares — with an option to sell another 5.1 million — and expects to price between $22 and $25. That would raise somewhere between $748 million and $975 million and with its reported outstanding shares would give it a valuation of $8.1 billion to $9.3 billion.

StubHub is beginning the so-called “road show” phase of the IPO, in which the company makes its case to investors before the offering. Under the IPO plan, founder Eric Baker will hold Class B shares — in contrast to the Class A shares offered to investors, which come with one vote each, Class B shares are 100 votes — and firmly control the company with nearly 88% of the voting power.

StubHub has regularly reported increased revenues but mounting costs in its pre-IPO SEC reports, but looks destined to finally make its NYSE debut, completing a process that’s been underway since 2022.

WME Invests In Kygo’s Palm Tree Crew

A funding round for Norwegian DJ Kygo’s Palm Tree Crew — which operates festivals and four hospitality properties — raised $20 million, driven by an investment from WME Group.

 “As music, hospitality, lifestyle, and live experiences converge, Palm Tree Crew has quickly established itself as a cultural force at the center of it all,” WME Group president and COO Mark Shapiro said. “Our investment reflects both our confidence in Palm Tree Crew’s vision and the natural alignment between our companies in creating world-class experiences that captivate audiences around the globe.”

Palm Tree Crew’s hospitality properties include Palm Tree Beach Club in Las Vegas, Palm Tree Club & Hotel in Miami, and properties in Orlando and Kansas City. It operates 10 festivals around the world.