This week, Warner Music Group issued its financial results for calendar Q4 2025, generating $1.84 billion in quarterly revenues with recorded music subscription streaming revenues jumping 10.9% YoY.
Meanwhile, Sony‘s global music rights operation surpassed a significant financial milestone, generating $3.01 billion across recorded music and publishing in a single quarter for the first time.
Elsewhere, Universal Music Group and AI music firm Suno engaged in a public PR battle over “walled gardens” in AI music, with UMG championing restricted platforms while Suno advocates for “open studios” that maintain creative freedom.
And MBW learned that distribution platform DistroKid is in talks with potential buyers, seeking a sale price of $2 billion or higher. DistroKid is being represented by both Raine and Goldman Sachs in the process.
Also this week, AI audio startup ElevenLabs raised $500 million in a Series D funding round, valuing the company at $11 billion and marking more than triple its valuation from a year ago.
Here are some of the biggest headlines from the past few days…
1. WMG GENERATED $1.84BN IN CALENDAR Q4; RECORDED MUSIC SUBSCRIPTION STREAMING REVENUES JUMP 10.9% YOY
Warner Music Group has issued its financial results for the three months ended December 31, 2025 (calendar Q4 2025 – the company’s fiscal Q1 2026).
According to WMG’s fiscal Q1 (calendar Q4) results, Warner saw its quarterly global company-wide revenues reach USD $1.84 billion (across recorded music, music publishing, and other activities).
Total revenue was up 7.1% YoY at constant currency. WMG said on February 5 that its “high-single-digit revenue growth reflects broad-based strength across Recorded Music and Music Publishing”.
WMG noted that a digital revenue settlement of $12 million in the quarter, combined with the ongoing impact of the termination of a distribution agreement with BMG, affected its Recorded Music revenue… (MBW)
2. SONY’S COMBINED REVENUE FROM RECORDED MUSIC AND PUBLISHING BLASTS PAST $3B MILESTONE IN CALENDAR Q4 2025
Sony’s global music rights operation surpassed a significant financial milestone in calendar Q4 2025 (the firm’s fiscal Q3 2025). Across both recorded music and music publishing, the company’s operations generated USD $3.01 billion in the three months to end of December – the first time that this number has surpassed $3B.
The $3.01 billion figure was up double-digits (+11.4% YoY) at US dollar-converted consistent currency, according to MBW‘s calculations based on Sony Group Corp’s latest fiscal results announcement on February 5.
Its growth, according to Sony, was partly driven by increases in streaming revenues, but also from Sony’s global participation in the live concert and merch businesses.
In monetary terms, Sony’s overall music rights operation (recorded music plus music publishing) generated approximately $309 million more in calendar Q4 2025 than in the prior-year quarter… (MBW)
3. UNIVERSAL AND SUNO ARE IN A PR BATTLE OVER ‘WALLED GARDENS’ IN AI MUSIC
A PR battle appears to be breaking out between the world’s most prominent AI music company and the world’s largest music rights company.
On Monday (February 2), ex-major label executive Paul Sinclair, now Chief Music Officer of AI music firm Suno, penned a lengthy post-Grammy Week LinkedIn memo entitled “Open Studios, not walled gardens” that takes direct aim at the approach championed by Universal Music Group in its recent AI licensing agreements.
UMG was the first major to settle its litigation with Suno rival Udio (in October 2025), alongside a licensing deal for a new AI platform set to launch in 2026. The concept of a “walled garden” was introduced within that announcement – a model where AI-generated music cannot be downloaded or distributed outside the platform.
Udio disabled downloads, with users given a 48-hour grace period to retrieve previously created tracks before the walls went up… (MBW)
4. DISTROKID, REPPED BY GOLDMAN SACHS AND RAINE, EXPLORING A SALE
Grammy Week was abuzz with industry-changing headlines – from BMG’s discussions to acquire Concord to Sony Music Group tying with GIC for a $2B+ catalog-buying fund.
MBW also brought you news from Los Angeles of another transformative potential deal: according to multiple strong sources, distribution platform DistroKid is holding talks with potential buyers over a big-money sale.
MBW hears that DistroKid is being repped by both Raine and Goldman Sachs in these discussions.
The number being bandied around L.A. was USD $2 billion, although some sources suggest that price could escalate even higher… (MBW)
5. ELEVENLABS, CREATOR OF SUNO RIVAL ELEVEN MUSIC, RAISES $500M AT $11BN VALUATION
AI audio startup ElevenLabs has raised $500 million in a Series D funding round, valuing the London and New York-headquartered company at $11 billion — more than triple its valuation from a year ago.
The round was led by Sequoia Capital, with partner Andrew Reed joining the ElevenLabs board. Investors Andreessen Horowitz and ICONIQ significantly increased their stakes, while Lightspeed Venture Partners, Evantic Capital, and BOND joined as new investors.
Other backers including BroadLight, NFDG, Valor Capital, AMP Coalition, and Smash Capital also participated, with additional investors expected to be disclosed later this month.
The funding round arrives six months after the company launched Eleven Music – a rival to Suno and Udio – marking its expansion beyond voice synthesis into full AI music generation… (MBW)
