Taylor Swift Album Will Buoy Universal—but Not How You Think

Universal Music Group is expected to benefit from Taylor Swift's release of _The Tortured Poets Department_ album that looks set to smash records, with consensus forecasts likely rising, BofA Securities analysts say in a research note. The record label appears to be less hit-driven and dependent on a single artist than perceived, with Swift's impact expected to be felt through physical sales rather than via streaming growth, the analysts say. Swift likely commands lower profitability than other UMG artists as she owns her master recordings—thus entitled to a larger royalty share—and is overrepresented on physical formats, which come with a lower margin for the record label.