In the final week of December 2024, the music industry experienced a downturn as stocks fell for the third consecutive week. The Billboard Global Music Index (BGMI), which tracks 20 major companies, saw a slight decline of 0.6%, settling at 2,155.51. Despite this drop, the index still managed a substantial year-to-date gain of 40.5%. Over the past three weeks, the BGMI has lost 5.5% after experiencing six consecutive weeks of gains totaling 14.6%. Out of the 20 companies tracked, only six showed positive performance while 13 declined.

Key Players and Market Movements

In the waning days of a quiet trading period, some notable changes occurred among key players in the music industry. Two out of the three major music labels managed to stay afloat, with Universal Music Group seeing a modest increase of 1.4% to 24.70 euros ($25.75). Warner Music Group also made gains, rising 0.9% to $31.45. Meanwhile, iHeartMedia reported a 1.1% rise to $1.91 following a successful debt restructuring that reduced its long-term debt by $440 million and extended maturity dates.

However, not all companies fared as well. Independent music firms like Reservoir Media and Believe faced declines of 4.3% and 4.0%, respectively. South Korean entertainment giants were also affected, with YG Entertainment, HYBE, JYP Entertainment, and SM Entertainment all recording losses ranging from 1.6% to 2.6%.

Spotify, the most valuable company in the BGMI, saw its stock drop for the third straight week, falling 0.8% to $456.48. Although it has dipped 9.9% since reaching its peak on December 4th, Spotify remains the top performer of 2024, with a staggering 143% increase for the year.

Chinese streaming platform Tencent Music Entertainment (TME) also experienced a minor setback, dropping 1.8% to $11.72. Analysts at 86Research have upgraded TME to a "buy" rating, predicting a potential rise to $14 per share. TME shares have climbed 30.1% year-to-date.

The week's biggest loser was SiriusXM, which plummeted 8.6% to $21.13. This significant decline marks the second-worst performance in the BGMI for 2024, following Cumulus Media's dramatic 86.5% drop.

Compared to global markets, music stocks underperformed. While the Nasdaq composite and S&P 500 in the U.S. rose by 0.8% and 0.7%, respectively, and the FTSE 100 in the UK improved by 0.8%, the music sector struggled to keep pace.

From a broader perspective, this week's events highlight the volatility within the music industry. Despite the recent setbacks, the overall positive trajectory of the BGMI throughout 2024 suggests resilience and potential for future growth. Investors should remain cautious but optimistic, as the market's fluctuations can present both challenges and opportunities.