State Champ Radio Robert Kyncl
The buzzword from music company CEOs so far in 2024? Superfans.
Already this year, the heads of Warner Music Group, Universal Music Group, Spotify and Live Nation have announced an intention to lean into better serving superfans of artists, with new initiatives and already one investment deal on the table. And today (Feb. 27), at the Web Summit conference in Doha, Qatar, WMG CEO Robert Kyncl announced that Warner would be building a new platform aimed at better connecting its artists with their biggest fans.
“Something we’re working on at Warner are these direct to superfan experiences,” Kyncl said, speaking on stage alongside newly-signed Warner artist Nora Fatehi. “I’ve assembled a team of incredible technology talent who are working on an app where artists can connect directly with their superfans, who are generally the people that consume the most and spend the most… and we’re focused on making sure that artists get data on these superfans.”
Kyncl hinted at the new platform, which is still early in development, in his New Year’s note to staff in January, where he said, “We need to develop our direct artist-superfan products and experiences,” adding that some things were already in the works. “Both artists and superfans want deeper relationships, and it’s an area that’s relatively untapped and under-monetized,” he said.
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The details of Warner’s app are still vague, though a source said more information should be coming in the next few weeks, and Kyncl mentioned something rolling out later this year. But already there are apps and platforms, such as WeVerse and Stationhead, that have done significant work in capturing the superfan community, connecting artists — including some of Warner’s biggest artists — directly with their biggest fans.
Other companies have hinted at the beginnings of their own strategies. Last week, Universal announced an investment in Complex and NTWRK, following the latter’s acquisition of the former from Buzzfeed, aimed at connecting artists with an online shopping option for fans; that came a month after UMG chairman/CEO Lucian Grainge’s own New Year’s memo to staff, in which he said, “The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products,” pointing to discussions with platform partners and in-house partnerships. In January, Spotify CEO Daniel Ek hinted at the creation of “superfan clubs” when mentioning new products. And last week, Live Nation execs talked about revamping the superfan experience for concerts, in a bet that it will drive more revenue.
While Kyncl didn’t specify what Warner has in the works, or how it will connect artists to fans, he underlined the need for the app to be available across platforms. “Artists want to work with every single platform… they don’t want to optimize just for one platform over another,” he said. “So a solution like this for superfans has to be a cross-platform solution. We, as a record label, are in a perfect position to do that because we work with all of the platforms. Historically, we haven’t had the technology talent to do this, but now we do… it’s an exciting piece of work that will launch later this year.”
Warner Music Group announced Wednesday (Feb. 7) that its quarterly revenue grew 17% for the period ended Dec. 31, 2023, up 11% in normalized revenue, to $1.75 billion, its highest quarterly mark ever, ahead of its earnings call Thursday. At the same time, CEO Robert Kyncl announced in an internal memo to staff obtained by Billboard that the company will be reducing its workforce by 10%, or some 600 people, as part of a plan to free up $200 million in cost savings to reinvest into the company.
Much of that workforce reduction, Kyncl wrote, will come in the form of Warner’s owned and operated media properties — such as Uproxx and HipHopDX, which it acquired in August 2018 — as well as in corporate and support roles. “Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function,” Kyncl wrote. “These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news and entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN.”
Kyncl further added that Warner is making the move from “a position of strength,” noting that the company currently has five of the top 10 songs on the Hot 100, “and that’s the smart time to change, innovate and lead. Music is constantly morphing, so we need to morph with it.”
That $200 million in cost savings will be realized by the end of September 2025, Kyncl said in the memo; some of those laid off have already begun to be informed, while the “vast majority” will be notified “by the end of September 2024,” he writes.
“As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices,” the memo continued. “We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities,” which he says includes growing engagement with music, increasing the value of music and evolving how Warner’s teams work together.
Read Kyncl’s full note to staff below.
Hi everyone,
We just finished our first All Hands of 2024 from LA.
This is a pivotal moment in the evolution of this great company, so I wanted to make sure you heard about it directly from me. As I outlined in my note last month, 2024 is a year during which we will double down on our core business and move at an increased velocity to seize the incredible opportunities for music in the new world.
This week, our recording artists make up five of the top 10, and our songwriters have six of the Top 10, on the Billboard Hot 100. Today, we’re revealing our latest quarterly results: we grew 11% in normalized revenue. And with growing momentum in Recorded Music streaming and excellent results in Music Publishing, we hit our highest quarterly revenue ever. We’re in a position of strength, and that’s the smart time to change, innovate, and lead. Music is constantly morphing, so we need to morph with it.
Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind the music.
Our plan includes reducing our workforce by approximately 10%, or 600 people – the majority of which will relate to our Owned & Operated media properties, corporate and various support functions.
We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024. I recognize this is unsettling news. To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication. We’re fortunate that you’ve been part of the team. We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.
Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function. These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news & entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN. Maria and I continue to discuss the ongoing evolution of WMX, and how best to further improve our services to artists and labels, and she’ll update the team in the coming weeks.
As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices. We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities:
Grow the engagement with Music
Discovering and developing artists and songwriters is at the heart of everything we do. We’ll turbocharge our efforts and investments, with additional focus on high growth geographies and vibrant genres, as well as using our data and insights to help original talents cut through the increasing noise, and taking a holistic global approach to maximizing the potential of their catalogs.
Increase the value of Music
This is one of our industry’s largest and most complex opportunities and one that we’re working on diligently, whether it’s new DSP deal structures or building superfan experiences to help artists connect directly with their most passionate followers.
Evolve how we work together
In order to grow at an accelerated pace, we need to structure our organization so that we can grow efficiently and continue to invest more into music at the same time. That requires being intentional about where centralized shared functions make sense, versus where they are best fully dedicated. This will empower subject matter experts, while scaling our resources. We already made moves in this direction by centralizing our technology, finance and business development teams last year.
Above all, we’re positioning ourselves to be first, to be different, and to be exceptional. I – and the entire leadership team – will be keeping you updated as we make progress. In May, we’ll hold our next All Hands meeting, which we’ll devote to our best new music, as well as our most promising projects.
Thank you for your understanding, passion, and determination. We’re in an amazing industry, we’re partnered with many extraordinary artists and songwriters, and now is the time for us to pioneer the future.
Robert
Now that Warner Music Group chairman/CEO Robert Kyncl has had a full year at the helm of the major label, he has released a New Year’s note to staff, obtained by Billboard, outlining a plan to kick into gear and set the company up for the next 10 years of changes in the music business.
In the note, Kyncl says he’s referring to the year 2024 as “The Year of the Next 10 — the year when we move at velocity to set ourselves up for a winning decade in the new world.”
“As we start the new year, one thing I’d like us all to remember is that our world has fundamentally changed… the music business is in a very different place than it was 10 years ago,” Kyncl writes. “Now, we’re in a position of strength. That is the time to get ahead for the future.”
He then emphasizes three key areas that he sees as crucial for the next year: growing the engagement with music; increasing the value of music; and evolving how the team works together.
On the first point, Kyncl breaks it down into four main focus points. The first, he writes, is about focusing A&R more on capturing opportunity, including geographically (“based on where artists and songwriters come from and where their streams are going”) and looking forward, as with identifying genres that will grow in the future. The second, in marketing, he emphasizes the partnership between marketing, A&R, tech and business intelligence to better focus efforts and better use the data available. The third, in catalog, emphasizes the ability to market and promote WMG’s extensive catalog on the same lines as it does its frontline music, particularly in digital optimization, given that catalog is driving some 70% of consumption in the current market. And finally, he emphasizes distribution and administration, in beefing up both the services available to the “middle class of artists” and in the major’s publishing admin business, which he wants to scale up further.
The second point, focusing on value, is about solving in 2024 for some of the conversations that rose up and started to dominate in 2023: namely, the value of artists and music on streaming platforms, as well as the issues surrounding the dilution of the royalty pool from the likes of functional music and white-noise tracks. Kyncl has previously spoken about the importance of streaming services raising prices, which many did in the past year, which he stresses as well. And finally, he stresses the need to further develop artist-to-superfan relationships, which he calls “relatively untapped and under-monetized,” though notes that WMG has initiatives in the works in many of these areas already.
The final point, on working together, is about reorienting how the WMG team works, including through leaning into expertise, transparency, flexibility, collaboration across departments and within teams, relying on metrics and not being afraid to lead rather than follow the industry.
Kyncl also takes time to point out some of WMG’s successes in the past year, including big years by the likes of Zach Bryan, Jack Harlow and Gunna; returns from Dua Lipa, David Guetta and Ed Sheeran; and catalog victories for the music of David Bowie, Madonna and Talking Heads, among others, while looking forward to new music from Gabby Barrett, Maria Becerra, Green Day and more.
Looking at the past several decades in 10-year chunks is a useful way of catching snapshots of how markedly things have changed. In 2004, the CD boom had decidedly stalled, as piracy began to take chunks out of the record industry and the business was in the midst of its protracted struggle with piracy and the digital revolution. By 2014, the industry had effectively bottomed out, with recorded revenues hitting their nadir as streaming had been introduced but had yet to catch on as a viable, much less dominant, format for the business. Now, in 2024, with streaming far and away the biggest source of revenue for a booming business, the revenue model is being hotly scrutinized, as new technologies and increasing fraud and volume threaten to overwhelm the now-established status quo.
In that respect, Kyncl sees this year as a pivotal one to answer several of these big questions, and set WMG up for the next decade of challenges and opportunities in the business. “We’re going to fuel the growth of this company using the same resourcefulness and determination with which we develop our artists and songwriters,” he writes. “Because ultimately that’s what will serve them best.”
Warner Music Group CEO Robert Kyncl has a message for a music industry facing disruption from artificial intelligence that’s often likened to the rise of file-sharing a quarter century ago: “You have to embrace technology, because it’s not like you can put technology in a bottle,” he said during an onstage interview at the Code […]
Lyor Cohen discussed “a future where generative AI has a profound impact on music” at the annual Made on YouTube event on Thursday (Sept. 21). YouTube’s longtime global head of music is nothing if not enthusiastic about artificial intelligence and its potential ability to supercharge music-making. Cohen told the attendees that “AI tools are opening up a new playground for creativity;” AI “can be used by artists to amplify and accelerate their creativity;” and AI can usher in “a new era of musical creativity.”
Cohen was joined by Charlie Puth, who played some piano and showed off his beatboxing, and Warner Music Group CEO Robert Kyncl. Kyncl acknowledged that not everyone in music is as excited about AI as Cohen seems to be: “Change is unsettling; we are in that period of change.” He proposed charting a path forward where AI enthusiasts can gain from the technology while artists who are wary of it are somehow shielded from its impacts.
Artists “will create and they will use all kinds of tools to create… that’s their job,” Kyncl said. “It’s our job, the platforms and the music industry, to make sure that artists like Charlie who lean in [to AI] benefit. It’s also our job together to make sure that artists who don’t want to lean in are protected.” He pointed to the success of YouTube’s Content ID system, which helps the platform track user-generated content, as a potential model, because creators can choose to monetize that UGC or block it depending on their preferences.
YouTube previously signaled its interest in being part of music’s AI-driven future in August when it announced an “AI Music Incubator” that will include input from Anitta, Juanes, Ryan Tedder, Rodney Jerkins, and many others.
“This group will explore, experiment and offer feedback on the AI-related musical tools and products they are researching,” Universal CEO Lucian Grainge wrote in a blog post. “Once these tools are launched, the hope is that more artists who want to participate will benefit from and enjoy this creative suite.”
At the Made on YouTube event, CEO Neal Mohan also discussed a suite of new tools for creators that aim to put “the creative power of AI into the hands of billions of people.” These include Dream Screen, which “lets you create AI-generated video or image backgrounds for Shorts by typing in an idea,” and a search function that “will act like a music concierge” when it comes time to find a track to place into a video. “Our creator can just describe her video, and if she wants she can even include information about the length or type of song she’s looking for, and Creator Music suggests the right track at the right price,” Mohan explained.
Jade Beason, a YouTube creator, told the crowd she “spend[s] a lot of time trying to find the right music for videos” and is sometimes “guilty of actually just using the same song [over again] because I just can’t find the right one.” “Music has the ability to change how your audience actually feels when they’re watching your content,” she continued. “It’s the difference between someone seeing a video of yours and laughing or crying… so the idea that we can do this easily amongst everything else is actually quite wild.”
Warner Music Group’s share price fell nearly 10% on Tuesday (May 9) following the release of the company’s second quarter earnings report, which showed that revenue from the recorded music division was effectively flat over last year ($1.143 billion vs. $1.147 billion in the year-ago quarter).
On Tuesday, Warner’s stock fell from $28.50 at the start of the day to $25.76 at the market’s close — a 9.58% drop.
This marks the second straight quarter of disappointing results in recorded music for Warner, the world’s third-largest label. Last quarter, revenue in the division fell 10.6%, or 5.6% in constant currency, on lower digital, physical and artist services and expanded rights revenue.
In the current quarter, streaming revenue was down 0.4% (or, in constant currency 2.2% higher) on fewer releases and a slowdown in ad-supported revenue due to macroeconomic uncertainty. By contrast, music publishing revenue grew 12% to $257 million, up from $230 million a year ago.
“While our publishing was best in class, we underperformed in recorded music,” said CEO Robert Kyncl on an earnings call Tuesday.
In attempts to bolster confidence, WMG executives on the call stressed that the company is already seeing improvement with the late-April releases of Jack Harlow’s Jackman., Tïesto’s Drive and Ed Sheeran’s Subtract, which was released earlier this month. CFO Eric Levin noted that the label’s release slate “was a little lighter in the first two quarters of the year and will be weighted to (the third quarter) and (the fourth quarter),” with upcoming releases expected from Dua Lipa‘s Barbie soundtrack, among others.
“We absolutely expect this to improve our results in recorded music streaming in the second half of the year,” Levin added.
Nonetheless, investors appear to be growing skittish over the lackluster performance. Tuesday’s closing price marked a sharp drop of nearly 20% of Warner’s stock over the past month, with the share price falling from $32.12 on April 10.
As the music industry grapples with the far-reaching implications of artificial intelligence, Warner Music Group CEO Robert Kyncl is being mindful of the opportunities it will create. “Framing it only as a threat is inaccurate,” he said on Tuesday (May 9) during the earnings call for the company’s second fiscal quarter ended March 31.
Kyncl’s tenure as chief business officer at YouTube informs his viewpoint on AI’s potential to contribute to the music industry’s growth. “When I arrived [at YouTube] in 2010, we were fighting many lawsuits around the world and were generating low tens of millions of dollars from [user-generated content],” he continued. “We turned that liability into a billion-dollar opportunity in a handful of years and multibillion-dollar revenue stream over time. In 2022, YouTube announced that it paid out over $2 billion from UGC to music rightsholders alone and far more across all content industries.”
Not that AI doesn’t pose challenges for owners of intellectual property. A wave of high-profile AI-generated songs — such as the “fake Drake”/The Weeknd track, “Heart on My Sleeve,” by an anonymous producer under the name Ghostwriter — has revealed how off-the-shelf generative AI technologies can easily replicate the sound and style of popular artists without their consent.
“Our first priority is to vigorously enforce our copyrights and our rights in name, image, likeness, and voice, to defend the originality of our artists and songwriters,” said Kyncl, echoing comments by Universal Music Group CEO Lucian Grainge in a letter sent to Spotify and other music streaming platforms in March. In that letter, Grainge said UMG “would not hesitate to take steps to protect our rights and those of our artists” against AI companies that use its intellectual property to “train” their AI.
“It is crucial that any AI generative platform discloses what their AI is trained on and this must happen all around the world,” Kyncl said on Tuesday. He pointed to the EU Artificial Intelligence Act — a proposed law that would establish government oversight and transparency requirements for AI systems — and efforts by U.S. Sen. Chuck Schumer in April to build “a flexible and resilient AI policy framework” to impose guardrails while allowing for innovation.
“I can promise you that whenever and wherever there is a legislative initiative on AI, we will be there in force to ensure that protection of intellectual property is high on the agenda,” Kyncl continued.
Kyncl went on to note that technological problems also require technological solutions. AI companies and distribution platforms can manage the proliferation of AI music by building new technologies for “identifying and tracking of content on consumption platforms that can appropriately identify copyright and remunerate copyright holders,” he continued.
Again, Kyncl’s employment at YouTube comes into play here. Prior to his arrival, the platform built a proprietary digital fingerprinting system, Content ID, to manage and monetize copyrighted material. In fact, one of Kyncl’s first hires as CEO of WMG, president of technology Ariel Bardin, is a former YouTube vp of product management who oversaw Content ID.
Labels are also attempting to rein in AI content by adopting “user-centric” royalty payment models that reward authentic, human-created recordings over mass-produced imitations. During UMG’s first quarter earnings call on April 26, Grainge said that “with the right incentive structures in place, platforms can focus on rewarding and enhancing the artist-fan relationship and, at the same time, elevate the user experience on their platforms, by reducing the sea of noise … eliminating unauthorized, unwanted and infringing content entirely.” WMG adopted user-centric (i.e. “fan-powered”) royalties on SoundCloud in 2022.
Brooke Primont was promoted to executive vp of global sync at Concord Music Publishing, where she will lead the company’s 17-person synch team worldwide, the company tells Billboard.
Based in New York City, Primont will lead all of Concord’s publishing synch operations, managing teams in the United States, United Kingdom, Germany and Australia — along with the company’s global sub publisher network — while creating synergies across the Concord catalog. She will report to chief publishing officer Jim Selby.
Primont joined Concord more than five years ago as head of the North American publishing synch department. Recent achievements by her team include a Super Bowl ad for UberEats featuring Montell Jordan’s “This Is How We Do It”; Ericdoa’s “ >one (greater than one)” for the Valorant video game series; Night Ranger’s “Sister Christian” in the trailer for Air; and The Polyphonic Spree‘s “Hold Me Now” in the trailer for Everything Everywhere All At Once.
“I am excited to expand my role by bringing together Concord’s sync teams around the world, allowing us to broaden the scope and diversify the opportunities that we can offer our songwriters and composers,” said Primont in a statement. “The global Concord Music Publishing sync team is truly something special, we have developed unparalleled relationships across the entertainment industry, and it doesn’t hurt that our catalog is full of some of the best songs ever written.”
Selby added, “Brooke has already taken our sync division to new heights. I know that this new role will further expand her capabilities, bringing more opportunities to more of our writers and enriching our catalogue.”
Over her 25 years in music publishing, Primont has served in roles at BMI, Cherry Lane Music Publishing and Razor & Tie. She currently serves on the executive boards for the AIMP New York chapter and Kid Pan Alley.
The Paley Center for Media announced that Combs Global and REVOLT chairman Sean “Diddy” Combs and Warner Music Group CEO Robert Kyncl joined the entertainment industry nonprofit’s board of trustees alongside LinkedIn CEO Ryan Roslansky and Alibaba Group co-founder/executive vice chairman Joseph C. Tsai. Additionally, FOX Entertainment CEO Rob Wade joined the Paley Los Angeles board of governors. According to a press release, the organization’s board of trustees “offers guidance in support of the organization’s mission to lead the conversation around today’s rapidly evolving media landscape and provides critical input on strategy and operations, including public programs and exhibits, educational classes, workshops, and industry events hosted by the Paley Media Council.”
Recently formed multimedia platform gamma., founded by Larry Jackson, is expanding operations into Africa and the Middle East and has named Sipho Dlamani as president of Africa & Middle East and Naomi Campbell as special advisor of Africa & Middle East. The Africa operation will be based in Lagos, Nigeria and the Middle East operation will be based in Dubai, United Arab Emirates. Dlamini most recently served as CEO of Universal Music South Africa and Sub-Saharan Africa; Campbell, an internationally recognized supermodel and UN Commonwealth Ambassador, is the founder of Fashion For Relief and The Emerge Initiative, among other endeavors. In its debut in the region last Friday, gamma. exclusively distributed and marketed Rema‘s album, Rave & Roses (Ultra) in African territories.
AWAL announced the appointment of its U.K. executive leadership team, including Matt Riley as managing director; and Victoria Needs and Sam Potts as senior vps. Riley will expand his current oversight as the company’s head of A&R, working with AWAL president Paul Hitchman and CEO Lonny Olinick to sign new artists and develop the company’s roster. Needs will add the U.K. market to her existing international marketing duties for AWAL, while Potts will continue working with the executive leadership team to maximize audience development and growth strategies for AWAL artists across traditional and digital media.
Also at AWAL, Cami Operé was named vp/head of publicity. She joins the company from Sacks & Co., where she was vp of publicity and led public relations efforts for artists including Lizzy McAlpine, Jungle and Bruno Major. She can be reached at cami.opere@awal.com.
Sara Knabe was named senior vp of A&R at Big Loud, where she will work with both the Big Loud Records and Big Loud Publishing A&R teams. Knabe joins following a year spent founding and developing Cake Maker Music, her own music publishing, artist development and A&R consulting company; she previously served in roles at BBR Music Group and BMG, among others. Knabe can be reached at saraknabe@bigloud.com.
Steve Ziff was named chief business officer at Loud And Live, where he will oversee the company’s marketing services and enterprise-wide business development efforts, offering strategic guidance to grow the company’s portfolio. He joins the company from Thrill One Sports, where he served as chief marketing officer/chief communications officer. Ziff can be reached at sziff@loudlive.com.
Second Estate Records, a new label founded by A&R veteran and entrepreneur Mel Carter, appointed Katie Kay as general manager and Adise Bellille as president. Together, Kay and Bellille will oversee forthcoming releases from 2Rare and more acts in partnership with Warner Records, with which Second Estate has a joint venture. Kay most recently served as vp of marketing at Cinematic Music Group, while Bellille is an entertainment and hospitality entrepreneur who founded New York-based nightlife hub Carefree Nation, among other endeavors. Kay can be reached at Katie@secondestaterecords.com and Bellille can be reached at Adise@secondestaterecords.com.
Suzi Ibbotson was named director of communications at PPL; she joins from Unilever Global, where she held the same role. She will report to CEO Peter Leathem and join the company’s executive management team. Ibbotson can be reached at suzi.ibbotson@ppluk.com.
The board of Hipgnosis announced that Vania Schlogel stepped down as a director, effective April 30, to focus on her firm, Atwater Capital. “Vania is an exceptional executive and her experience in every aspect of investment and music has been invaluable in making Hipgnosis the market leader,” said Hipgnosis Songs Fund CEO/founder Merck Mercuriadis in a statement. “We appreciate her terrific contributions to Hipgnosis Songs Fund during her time on the Board and wish her every success in the future.”
Independent publishing company peermusic announced three promotions in its Canada office as well as its neighboring rights division, including Neville Quinlan to managing director of publishing & neighbouring rights, Canada; Cheryl Link to general manager of peermusic’s Toronto publishing operations; and Rachael Clark to head of administration at peermusic Canada. Quinlan can be reached at nquinlan@peermusic.com, Link can be reached at clink@peermusic.com and Clark can be reached at rclark@peermusic.com.
The U.K. office of independent record company Because Music and London Records has announced several senior appointments. They include Rhian Emanuel, promoted to managing director at Because Music UK; Laura Kelly, promoted to managing director at London Records; Ed Pearson, promoted to senior vp of marketing, dance & electronic at Because Music UK; and Junior Foster, hired as digital marketing & strategy manager at London Records, which he joins from Deezer.
Brian Celler was named senior vp of content and programming, Europe at ASM Global. He will be responsible for the company’s music, entertainment and sports content throughout its European and U.K. portfolio. The 25-year veteran has previously held roles at Q Prime, Sony Music, Universal Music Group and Principle Management. Celler can be reached at Brian.Celler@eu.asmglobal.com.
Ashley Gorley‘s publishing and artist development company, Tape Room Music, promoted all three members of its team. Blain Rhodes was named president, Kelly Bolton was named senior vp of A&R and Caroline Hodson was named manager of A&R.
Holly Schomann was promoted to senior director of program & project management at TuneCore, where she will now oversee a team of project managers to ensure proper execution of software development processes and internal reporting.
Todd Bonder joined Reitler Kailas & Rosenblatt‘s Los Angeles office as a partner in the firm’s litigation practice. Bonder focuses on intellectual property and general civil litigation, emphasizing entertainment, new media, trademark, copyright, rights of publicity and privacy and publishing matters, as well as unfair competition, trust, probate, contract, real estate and construction disputes. He can be reached at tbonder@reitlerlaw.com.
Veteran agent Stefanie Purificati joined The Feldman Agency in Canada, where she brings clients including Digging Roots, Aysanabee, iskwē and Tynomi Banks to the roster. She will be based out of the company’s Toronto office and can be reached at purificati@feldman-agency.com.
Found Objects, the music and sound collective founded by film/TV composers Jay Wadley and Trevor Gureckis, promoted Katt Matt to executive producer and Nick Chomowicz to senior producer. The collective specializes in sound design and music supervision for film, TV and brands.
Sue Ann Cordell joined Reliant Talent Agency, where she will be responsible for human resources, office administration and executive assistance. She has held roles at companies including WME and is also the owner of life coaching and event-speaking company Shineworthy Lifestyles, among other ventures. Cordell can be reached at sacordell@relianttalent.com.
Maria Eiliert was named account executive at Shore Fire Media out of its Nashville office, elevated from junior account executive. She joined the firm after graduating from Belmont University with a music business degree in November 2020.
Rachel Brittain joined The Neal Agency as a commercial and brand partnerships agent. She joins from FlyteVu, where she served as an account manager and was part of the talent team, connecting artists to brands. She can be reached at Rachel@TheNealAgency.net.
Labelcoin, a blockchain-based song exchange and investment marketplace “striving to end artist poverty with fan-supported investment in artists’ songs,” according to a press release, launched a business advisory council that so far includes Mark Dvornik, former head of U.S. distribution at Paramount Pictures; Hummingbird Productions founder/president Bob Farnsworth; G2G Enterprises founder/CEO Lee Guzofski; and MRSV Media CEO Loren Johnson.
New Warner Music Group (WMG) CEO Robert Kyncl didn’t take much time to make an imprint on the company. On Wednesday (March 29), fewer than three months into Kyncl’s tenure, WMG announced it would lay off 270 employees, or 4% of its workforce.
The layoffs will save the company $22 million in fiscal year 2023 ending Sept. 30, 2023, and “$50 million on an annualized run-rate basis in fiscal year 2024,” according to an SEC filing released Wednesday. That’s equal to 4.2% of WMG’s adjusted earnings before interest, taxes, depreciation and amortization in the fiscal year ended Sept. 30, 2022.
Like many other companies, WMG is becoming more mindful of its resources as the music industry tries to extend an eight-year growth spurt. Prior to announcing the layoffs, WMG said a “financial transformation program,” to roll out in fiscal 2024, is expected to produce annual savings of “$35 million to $40 million once fully implemented,” CFO Eric Levin said on the company’s Feb. 9 earnings call. Universal Music Group’s Motown Records announced layoffs in February as the label was reintegrated under Capitol Music Group. Downtown Music Holdings, Spotify and SoundCloud have also reduced their headcounts in recent months.
WMG had “to make some hard choices in order to evolve” and position the company for “long-term success,” Kyncl wrote in a memo to employees. The cuts were thoughtful and purposeful, he added, not a “blanket cost-cutting exercise.” The layoffs “should be substantially completed by the end of the next fiscal quarter” ending June 30 and will result in cash expenditures of about $46 million by the end of fiscal 2024, according to the filing.
News of WMG’s layoffs didn’t sway investors, however. WMG’s share price rose just 0.6% to $32.63 on Wednesday despite the restructuring’s ability to improve its bottom line. Year-to-date, WMG’s share price has fallen 6.8% while overall stocks have broadly rebounded from a dismal 2022. The S&P 500 is up 4.9% and the tech-heavy Nasdaq composite is up 13.9%. The New York Stock Exchange composite is down 0.4%.
While WMG will reduce headcount in some areas, the company is also building for the future — with an eye on tech. Kyncl, who quickly hired ex-YouTube executive Ariel Bardin for the newly created role of president of technology, said in his memo that WMG would be “reallocating resources towards new skills for artist and songwriter development and new tech initiatives.”
WMG expects to expand its gross margin by 50 to 100 basis points — equal to one-half to one percentage point — in fiscal year 2023. Aside from cost cuts, the nature of the changing music business helps the bottom line. WMG’s margins improve as it sells less of “margin-declining” physical product and “high-margin growing” digital business accounts for a larger share of its total revenue, Levin said at the Deutsche Bank 31st Annual Media, Internet & Telecom Conference on Feb. 28.
“We still see solid margin growth in 2023” despite declining ad-supported streaming revenues, Levin added. “When we see ad-supported start to stabilize and hopefully rebound and grow, it may create an environment for very favorable margins.”
Newly minted Warner Music CEO Robert Kyncl and his wife, psychotherapist Luz Avila Kyncl, have signed on for another five years of scholarship support for select computer science and engineering students at their alma mater, SUNY New Paltz.
The five-year-old Robert Kyncl ’95 and Luz Avila Kyncl ’96 Computer Science & Engineering Scholarship Fund is designed to benefit underrepresented students, especially women and minorities, seeking careers in STEM. Each year, at least six new transfer students or current Hawks will be selected for the scholarship, which offsets tuition costs.
The success of the scholarship has led to the creation of a group of alumni called the Kyncl Scholars.
“State education provided us with great opportunities, both professionally and personally, and we want to help more students access those same benefits,” said the Kyncls in a joint statement. “In turn, this talented next generation will help drive change and contribute to a more representative workforce in dynamic industries.”
The Kyncls’ most recent gift also supports the Fund for New Paltz and the AMP/CSTEP (AC²) Program Fund, which provides economic support for a number of traditionally underrepresented students who earn degrees in STEM fields and certain other majors such as Psychology.
SUNY New Paltz is a short drive north of New York City in Ulster County. As the name of the scholarship suggests, Robert graduated in 1995 (International Relations) and Luz a year later (Psychology).
“The Kyncls’ generosity in this area sends an important message to prospective and current students that people in leadership positions believe in their ability to succeed,” said Erica Marks, vice president for development & alumni relations and executive director of the SUNY New Paltz Foundation. “The University is continually evolving to remain competitive in offering high-quality computer science and engineering education that prepares students for their future. Each year, a powerful new cohort of Kyncl Scholars will be equipped with the training to be effective and collaborative contributors in the community.”
Robert Kyncl joined WMG on Jan. 1 after a decade as chief business officer at YouTube and seven years as vp of content acquisitions at Netflix. Read his first interview as CEO here. Luz Kyncl is a longtime licensed psychotherapist, and a certified health coach and mindfulness teacher. She is also the author of Liberate Yourself.
