Warner Music Group (WMG) investor relations material

Strategic priorities and growth model

• Focus on delivering value to stakeholders through high single-digit revenue growth, double-digit profit and EPS growth, and stronger cash conversion.

• Emphasis on building a strong growth culture, leadership, and execution capabilities globally.

• Partnerships with DSPs and AI companies to drive industry value and address under-monetization.

• Ongoing productivity initiatives and investment in people and capabilities.

Subscription streaming and pricing dynamics

• Global premium music subscribers surpassed 800 million in 2025, up 10% from 2024, with expectations to exceed 1 billion by 2030.

• Industry remains under-monetized, with global subscription prices averaging $4/month; significant pricing and tiering opportunities remain.

• Recent price increases from major DSPs contributed 3 percentage points to growth, with further increases expected.

• Market share gains are broad-based across regions, labels, and catalog vintages, driven by leadership changes and disciplined capital allocation.

Catalog and M&A strategy

• Catalog represents 65% of streaming revenue and is the most profitable segment, now growing after leadership and tech investments.

• Proprietary technology enables scalable marketing and engagement for long-tail catalog content.

• $650 million deployed through a joint venture with Bain to acquire high-margin, iconic catalogs, targeting 15-20% ROI depending on market.

• Most growth remains organic, with M&A contributing about one point to the growth model.