The Intrinsic Value Podcast - The Investor’s Podcast Network

TIVP039: Universal Music Group (UMG): Owning The World’s Music Catalog w/ Shawn O’Malley & Daniel Mahncke

17 snips
Sep 28, 2025
Discover how Universal Music Group dominates the music industry with a 30% share and high-quality earnings. Dive into the unique economics of music royalties and the impact of streaming on cash flow. The hosts discuss the partnership between labels and platforms, how labels still add value for artists, and explore threats and opportunities posed by AI. Learn about UMG's strategic acquisitions and how they navigate competition in the catalog market, all while debating the investment potential of this iconic company.
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INSIGHT

UMG Is A Global Music Toll Booth

  • Universal Music Group owns a dominant global catalog and collects royalties whenever those songs are used.
  • Scale, rights ownership, and platform monetization give UMG a durable cash-generating moat.
ANECDOTE

Host's Personal Investment Story

  • Shawn started buying UMG in July 2024 after a prior Millennial Investing episode and an earnings sell-off.
  • He considers UMG one of the highest-quality businesses he has studied and holds it personally.
INSIGHT

Market Share Drives Predictable Cash Flow

  • UMG controls ~30% share of global recorded music and publishing with 4 million tracks.
  • The company converts high margins into strong free cash flow, reflecting scale and pricing power.
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