This week, Warner Music Group posted calendar Q1 revenues of $1.73 billion, up 12.1% YoY at constant currency, with subscription streaming revenues rising 12.7% YoY.
Meanwhile, Sony‘s combined revenues from recorded music and music publishing topped $3 billion for a second consecutive quarter in calendar Q1 (January–March), generating an estimated $3.03 billion in the period.
Elsewhere, YouTube rolled out a new tool letting creators replace copyrighted audio with AI-generated instrumentals, allowing them to resolve Content ID claims without pulling videos.
Also this week, Bloomberg reported that Sony Music Group is in advanced talks to buy Blackstone’s Recognition Music Group for up to $4 billion.
Plus, Tencent Music Entertainment said in its ESG report that it took down more than 250,000 policy-violating songs and reviewed over 600,000 cases involving “high-risk copyright content” across its platforms in 2025.
Here are some of the biggest headlines from the past few days…
1. WARNER MUSIC GROUP GENERATED $1.73B IN CALENDAR Q1 2026; SUBSCRIPTION STREAMING REVENUES ROSE 12.7% YOY
Warner Music Group has issued its financial results for the three months ended March 31, 2026 (calendar Q1 – the company’s fiscal Q2).
According to the company’s fiscal Q2 (calendar Q1) results, published on Thursday (May 7), WMG saw its quarterly global company-wide revenues reach USD $1.732 billion (across recorded music, music publishing, and other activities).
Total revenue was up 12.1% YoY at constant currency.
Other highlights from the quarter include recorded music revenues up 12.7% YoY at constant currency to $1.38 billion, and recorded music subscription streaming revenues up 12.7% YoY at constant currency to $734 million.
“Our Q2 results demonstrate the powerful combination of creative and operational success, as well as financial discipline, providing clear evidence that our strategic transformation is working,” said Warner Music Group CEO Robert Kyncl in a note to investors on Thursday (May 7)… (MBW)
2. SONY GENERATED $3.03BN FROM RECORDED MUSIC AND PUBLISHING IN CALENDAR Q1 2026, UP 19.5% YOY
Sony‘s combined revenues from recorded music and music publishing topped USD $3 billion for a second consecutive quarter in calendar Q1 2026 (January–March), generating an estimated $3.03 billion in the period.
That’s according to MBW‘s calculations based on Sony Group Corp‘s calendar Q1 2026 (fiscal Q4, FY2025) results, as announced by the Japanese conglomerate on Friday (May 8).
The calendar Q1 2026 quarter also marks the end of Sony‘s fiscal year (which runs April 2025 to March 2026), meaning full-year figures are also available for the first time.
The $3.03 billion quarterly combined total was up 19.5% YoY at US dollar-converted consistent currency, compared to $2.54 billion in calendar Q1 2025.
That means Sony‘s recorded music and publishing operations generated approximately $495 million more in calendar Q1 2026 than in the prior-year quarter… (MBW)
3. YOUTUBE CREATORS HIT BY MUSIC COPYRIGHT CLAIMS CAN NOW REPLACE TRACKS WITH AI – AT THE TOUCH OF A BUTTON
YouTube is now letting creators generate AI-produced instrumental tracks to replace copyrighted audio in their videos — positioning the tool as a way to resolve Content ID claims without removing content from the platform.
The update, announced via YouTube‘s Creator Insider channel on Friday (May 1), adds a new “Create” button to the existing “Replace Song” tool in YouTube Studio on desktop.
Rene Ritchie, presenting the update on YouTube’s Creator Insider channel, said: “The Replace Song tool in YouTube Studio Desktop will now include a new Create button. Hit it and YouTube will generate four royalty-free instrumental tracks that you can use to replace copyrighted audio in your videos and release Content ID claims.”
The feature is currently limited to US desktop users of YouTube Studio.
A global launch and rollout to Studio mobile are planned for later this year, according to Ritchie… (MBW)
4. TENCENT MUSIC TOOK DOWN OVER 250,000 SONGS AND REVIEWED 600,000+ ‘HIGH-RISK’ COPYRIGHT CASES IN 2025 AMID ‘EMERGING AI RISKS’
Tencent Music Entertainment, China’s largest music streaming service provider, says it took down more than 250,000 policy-violating songs and reviewed over 600,000 cases involving “high-risk copyright content” across its platforms in 2025.
The figures come as TME said it bolstered compliance and risk management across key areas in 2025, including copyright licensing, emerging AI risks, and its overseas business expansion.
The figures were disclosed in TME‘s 2025 Environmental, Social and Governance (ESG) Report, published in April.
The 250,000-plus songs removed from platforms including QQ Music were identified through a combination of AI-powered detection tools and manual inspection as posing “reputational risks” or violating platform content policies.
Separately, TME said it took down over 27,000 songs specifically involved in what it categorizes as “song theft,” “song laundering,” and “trend hijacking” — three distinct forms of so-called “gray-market” manipulation that the company says are “becoming increasingly covert and complex.”… (MBW)
5. SONY IN ADVANCED TALKS TO BUY BLACKSTONE’S RECOGNITION MUSIC FOR UP TO $4B, REPORTS BLOOMBERG
Sony Music Group is closing in on a deal to buy Blackstone‘s Recognition Music Group, whose catalog is home to songs from Justin Bieber, Neil Young, and others.
That’s according to Bloomberg, which reported on Wednesday (May 6) that Sony is in exclusive negotiations with the private equity giant in what it described as “one of the largest such deals in music history”.
The acquisition would be made through Sony‘s music rights-buying joint venture with Singapore sovereign wealth fund GIC, which would pay between $3.5 billion and $4 billion, the news outlet reported, citing people familiar with the matter.
Bloomberg‘s report follows a Billboard story from May 1 that reported Sony was negotiating a deal for Recognition‘s assets.
Sony and Blackstone are pushing to finalize the agreement inside the next seven days, the report said, though Bloomberg cautioned that the talks could yet collapse… (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
Summary of Music Business Developments
Welcome to the latest edition of Music Business Worldwide’s Weekly Round-up, where we highlight the most significant stories from the past week in the music industry. This round-up is supported by BMI, a leader in performing rights management committed to advocating for songwriters, composers, and publishers.
Warner Music Group Reports Strong Q1 Results
Warner Music Group (WMG) announced its financial results for calendar Q1 2026, reporting revenues of $1.73 billion, marking a 12.1% increase year-on-year (YoY) at constant currency. Subscription streaming revenues specifically rose by 12.7% YoY to $734 million. WMG’s CEO Robert Kyncl emphasized that the results reflect a successful combination of creative output and operational efficiency, indicating that the company’s strategic transformation is yielding positive results.
Sony’s Music Revenues Exceed $3 Billion
Sony Music Group also reported impressive financial figures, with combined revenues from recorded music and music publishing surpassing $3 billion for the second consecutive quarter. For calendar Q1 2026, they generated an estimated $3.03 billion, up 19.5% YoY. This growth is attributed to strong performances across both divisions, with a notable increase in revenue compared to the same quarter the previous year. The results coincide with the end of Sony’s fiscal year, allowing for a comprehensive review of their financial performance.
YouTube Introduces AI-Generated Instrumentals
YouTube has launched a new feature enabling creators to replace copyrighted audio in their videos with AI-generated instrumental tracks, thus addressing Content ID claims without needing to remove the content. This feature, available to US desktop users, adds a “Create” button to the existing “Replace Song” tool, allowing creators to choose from four royalty-free tracks generated by the platform. A global rollout of this feature is planned for later this year, expanding access to mobile users as well.
Tencent Music’s Copyright Management Efforts
Tencent Music Entertainment (TME), the leading music streaming service in China, reported significant actions taken against copyright violations. In 2025, TME removed over 250,000 songs that violated policy and reviewed more than 600,000 cases of high-risk copyright content. The company is enhancing its compliance and risk management strategies, particularly concerning emerging AI risks and international expansion. Among the removals, over 27,000 songs were categorized as involving « song theft, » « song laundering, » and « trend hijacking, » highlighting ongoing challenges in copyright enforcement.
Sony in Talks to Acquire Recognition Music Group
In a major industry development, Sony Music Group is reportedly in advanced negotiations to acquire Blackstone’s Recognition Music Group for between $3.5 billion and $4 billion. This potential deal, which includes a catalog featuring notable artists like Justin Bieber and Neil Young, is noted as one of the largest acquisitions in music history. The acquisition would occur through Sony’s music rights-buying joint venture with Singaporean sovereign wealth fund GIC. Negotiations are expected to conclude soon, although there are risks that the talks could fall through.
Conclusion
This week’s music business news reflects robust financial performances from leading companies like Warner and Sony, significant technological advancements from platforms like YouTube, and proactive measures in copyright management by Tencent Music. Additionally, the potential acquisition of Recognition Music Group underscores the ongoing consolidation in the industry. These developments highlight the dynamic nature of the music business, driven by innovation, strategic growth, and increasing focus on rights management.
