Spotify Hits 300M Subs, WMG Q2 Up 9% After CFO Exit - August 4

Spotify crossed 300 million Premium subscribers in Q2 2026 — a first for any audio streaming service — while WMG posted surprise-early Q2 results the same week its CFO/COO abruptly departed. Meanwhile, the EU AI Act's enforcement deadline arrived, putting real legal teeth behind transparency rules for AI music platforms. Deals & M&A • WMG Q2 revenue up 9% YoY, subscriptions up 11%, net income $204M; CFO Zerza out, Dickler steps in as acting CFO • Merlin strikes Spotify licensing deal for generative-AI fan covers and remixes, extending UMG's May agreement to indie labels • BMG acquires Wolfmother frontman Andrew Stockdale's publishing, recorded, and neighboring rights • TREBEL acquires superfan engagement platform Sesh to deepen artist-fan tools across the Americas Lawsuits & AI • EU AI Act enforcement began August 2: AI audio must carry labels and watermarks, GPAI platforms must publish training-data summaries • Cher appeals denial of $1M+ attorney-fee recovery from Mary Bono; judge ruled dispute was contract, not copyright law • ISP Grande Communications seeks ~$4M in bond-premium costs from major labels as UMG v. Grande nears conclusion Streaming & Tech • Spotify Q2: 300M Premium subs, €4.78B revenue up 14%, €545M net income; shares fell ~4% on soft Q3 MAU outlook • Apple Music Classical launches first time-synchronized listening guide to Wagner's Ring cycle on its 150th anniversary Artists & Releases • BTS Grammy performance videos scrubbed from Recording Academy channels; Academy cites routine licensing expiration • Alicia Keys departs WME after nearly 15 years, signs with CAA International • Singapore permanently bans Massive Attack's two core members after Palestinian flag display at July 29 concert Five minutes, six categories, zero fluff.

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Today is Tuesday, August 4th, 2026. First up, deals and MA. Warner Music Group released preliminary second quarter figures showing total revenue up 9% year on year, with subscription streaming climbing 11%. The company posted net income of $204 million. This came just days after CFO and COO Armin Zurza's sudden departure. Lou Dickler is stepping up as acting CFO, while Tom Corson has been promoted to COO. Meanwhile, Merlin, the digital licensing body for independent labels, signed a deal with Spotify to license its new generative AI tool for fan-made covers and remixes. This extends to independent artists, the same paid add-on that Spotify already worked out with Universal Music Group back in May. And BMG acquired Wolf Mother Frontman Andrew Stockdale's publishing rights, recorded music royalties, and neighboring rights. BMG became Stockdale's global publisher back in 2016, and this deal deepens that relationship considerably. Moving to lawsuits and AI. Key provisions of the EU AI Act took effect on August 2nd, and they're now being enforced. AI-generated audio must carry visible labels and machine readable watermarks. General purpose AI platforms like UDO now have to publish summaries of their training data. Violations can bring fines up to 15 million euros, or 3% of global revenue, whichever is larger. Share filed an appeal after a federal judge denied her motion to recover over $1 million in attorney fees from Mary Bono. The judge ruled the underlying dispute was contract law, not copyright law, and therefore ineligible for fee shifting under copyright statutes. Also, ISP Grande Communications asked a federal appeals court to award it roughly $4 million in bond premium costs from the major labels. This is in the long-running copyright infringement case against Universal Music Group, which is nearing its final stage. Next up, streaming and tech. Spotify announced its second quarter results, and the company has hit a major milestone. Revenue came in at 4.78 billion euros, up 14% year on year. Net income reached 545 million euros, a sharp reversal from an 86 million euro loss in the same quarter last year. That said, shares fell about 4% after the company issued a weaker than expected outlook for third quarter monthly active user growth. Meanwhile, Apple Music Classical launched something new. The first time synchronized listening guide to Wagner's Der Ring des Nibelungen, time to mark the epic cycle's 150th anniversary. Now artist news. Also, Alicia Keys has signed with Creative Artists Agency, or CAA, ending nearly 15 years of representation by William Morris Endeavor. Finally, International. Singapore has permanently banned Massive Attacks two core members from re-entering the country. On July 29th, they displayed a Palestinian flag and shouted Free Palestine during a concert at the Star Theater. Police issued stern warnings and blacklisted them from the country. That's your music industry rundown. Have a good Tuesday.