Wall Street is catching up with something that has been well known inside the music industry for some time now: the streaming growth spurt is over. 

The sirens began to sound late last month when industry leader Universal Music revealed that streaming revenue growth had slowed considerably in the last quarter. Chief executive Lucian Grainge urged investors to focus on the long term, while chief financial officer Boyd Muir said he was “not overly concerned”. Nonetheless, the news landed with a thud, slicing UMG’s market valuation by more than 20 per cent in a single day.

What is strange about the market reaction is that other warning signs have been around for more than a year. Last October, Universal Music announced a “cost savings” programme. It has laid off hundreds of staff in recent months. Way back in March of 2023, rival Warner Music laid off 4 per cent of staff, and this February it declared plans to fire another 10 per cent.