From Warner and Sony’s This autumn outcomes to DistroKid’s potential $2B sale… it’s MBW’s weekly round-up

This week, Warner Music Group issued its monetary outcomes for calendar This autumn 2025, producing $1.84 billion in quarterly revenues with recorded music subscription streaming revenues leaping 10.9% YoY.

In the meantime, Sony‘s international music rights operation surpassed a major monetary milestone, producing $3.01 billion throughout recorded music and publishing in a single quarter for the primary time.

Elsewhere, Common Music Group and AI music agency Suno engaged in a public PR battle over “walled gardens” in AI music, with UMG championing restricted platforms whereas Suno advocates for “open studios” that keep artistic freedom.

And MBW discovered that distribution platform DistroKid is in talks with potential patrons, searching for a sale value of $2 billion or increased. DistroKid is being represented by each Raine and Goldman Sachs within the course of.

Additionally this week, AI audio startup ElevenLabs raised $500 million in a Collection D funding spherical, valuing the corporate at $11 billion and marking greater than triple its valuation from a yr in the past.

Listed below are a number of the largest headlines from the previous few days…

1. WMG GENERATED $1.84BN IN CALENDAR This autumn; RECORDED MUSIC SUBSCRIPTION STREAMING REVENUES JUMP 10.9% YOY

Warner Music Group has issued its monetary outcomes for the three months ended December 31, 2025 (calendar This autumn 2025 – the corporate’s fiscal Q1 2026).

In accordance with WMG’s fiscal Q1 (calendar This autumn) outcomes, Warner noticed its quarterly international company-wide revenues attain USD $1.84 billion (throughout recorded music, music publishing, and different actions).

Complete income was up 7.1% YoY at fixed foreign money. WMG mentioned on February 5 that its “high-single-digit income progress displays broad-based power throughout Recorded Music and Music Publishing”.

WMG famous {that a} digital income settlement of $12 million within the quarter, mixed with the continuing impression of the termination of a distribution settlement with BMG, affected its Recorded Music income… (MBW)

2. SONY’S COMBINED REVENUE FROM RECORDED MUSIC AND PUBLISHING BLASTS PAST $3B MILESTONE IN CALENDAR This autumn 2025

Sony’s international music rights operation surpassed a major monetary milestone in calendar This autumn 2025 (the agency’s fiscal Q3 2025). Throughout each recorded music and music publishing, the corporate’s operations generated USD $3.01 billion within the three months to finish of December – the primary time that this quantity has surpassed $3B.

The $3.01 billion determine was up double-digits (+11.4% YoY) at US dollar-converted constant foreign money, based on MBW‘s calculations based mostly on Sony Group Corp’s newest fiscal outcomes announcement on February 5.

Its progress, based on Sony, was partly pushed by will increase in streaming revenues, but in addition from Sony’s international participation within the dwell live performance and merch companies.

In financial phrases, Sony’s total music rights operation (recorded music plus music publishing) generated roughly $309 million extra in calendar This autumn 2025 than within the prior-year quarter… (MBW)

3. UNIVERSAL AND SUNO ARE IN A PR BATTLE OVER ‘WALLED GARDENS’ IN AI MUSIC

A PR battle seems to be breaking out between the world’s most outstanding AI music firm and the world’s largest music rights firm.

On Monday (February 2), ex-major label govt Paul Sinclair, now Chief Music Officer of AI music agency Suno, penned a prolonged post-Grammy Week LinkedIn memo entitled “Open Studios, not walled gardens” that takes direct intention on the strategy championed by Common Music Group in its latest AI licensing agreements.

UMG was the primary main to settle its litigation with Suno rival Udio (in October 2025), alongside a licensing deal for a brand new AI platform set to launch in 2026. The idea of a “walled backyard” was launched inside that announcement – a mannequin the place AI-generated music can’t be downloaded or distributed outdoors the platform.

Udio disabled downloads, with customers given a 48-hour grace interval to retrieve beforehand created tracks earlier than the partitions 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 amass Harmony to Sony Music Group tying with GIC for a $2B+ catalog-buying fund.

MBW additionally introduced you information from Los Angeles of one other transformative potential deal: based on a number of robust sources, distribution platform DistroKid is holding talks with potential patrons over a big-money sale.

MBW hears that DistroKid is being repped by each Raine and Goldman Sachs in these discussions.

The quantity being bandied round L.A. was USD $2 billion, though some sources counsel that value may escalate even increased… (MBW)

5. ELEVENLABS, CREATOR OF SUNO RIVAL ELEVEN MUSIC, RAISES $500M AT $11BN VALUATION

AI audio startup ElevenLabs has raised $500 million in a Collection D funding spherical, valuing the London and New York-headquartered firm at $11 billion — greater than triple its valuation from a yr in the past.

The spherical was led by Sequoia Capital, with associate Andrew Reed becoming a member of the ElevenLabs board. Buyers Andreessen Horowitz and ICONIQ considerably elevated their stakes, whereas Lightspeed Enterprise Companions, Evantic Capital, and BOND joined as new traders.

Different backers together with BroadLight, NFDG, Valor Capital, AMP Coalition, and Smash Capital additionally participated, with extra traders anticipated to be disclosed later this month.

The funding spherical arrives six months after the corporate launched Eleven Music – a rival to Suno and Udio – marking its growth past voice synthesis into full AI music era… (MBW)