warner music group
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What a difference a year can make.
Warner Music Group said on Thursday that revenue from its first fiscal quarter fell 5% to $1.67 billion from a year ago, as the company suffered tough comparisons to a period last year when it still had BMG as a physical and digital distribution client and enjoyed a $30-million boon from a digital licensing renewal deal.
But the third-biggest major music company also showed that the deep staffing cuts and wind-down of certain businesses over 2024 freed up money for investment — such as the $450-million acquisition of Tempo Music‘s catalog — and growth, like Atlantic’s half-a-percentage point market share expansion.
WMG’s quarterly results — which included a nearly 40% decrease in operating income and $27 million in restructuring costs and impairment charges — depict a company deep in transformation. Chief executive Robert Kyncl is trying to increase efficiency in legacy businesses and technology, while standardizing its sprawling global network, and striking more lucrative deals with streaming platforms.
Recorded music revenue in the first fiscal quarter, which ended Dec. 31, 2024, fell 7% to $1.35 billion from last year’s quarter, as BMG’s termination of its distribution deal created a $32 million drag (evenly split between streaming and physical revenue). Last year’s quarter also included the extension of one artist’s licensing agreement worth $75 million, and the $30-million renewal of a digital partner’s license.
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WMG says if you strip those three things out, total revenue rose 3.4%.
Overall, digital revenue and streaming revenue each fell by around 2%.
Adjusted operating income before depreciation and amortization (adjusted OIBDA)–which measures the profitability of a company’s core businesses–fell 19.5% to $363 million, and adjusted OIBDA margin fell to 21.8% from 25.8% in the prior-year quarter. If you take out the negative impacts of the licensing agreement and digital partner renewal, the company said its adjusted OIBDA fell by just 0.3% and adjusted OIBDA margin decreased 0.8 percentage point.
The company said adjusted OIBDA margin was also dragged down by the 8% rise in the value of the U.S. dollar since last year’s presidential election. (Almost 60% of Warner’s income is earned in euros and other currencies that trade against the dollar, according to the company.)
“All of these impacts will stabilize over time,” Kyncl said on a call with analysts discussing the earnings. “We’re confident about the future. Our goals are clear: increase our share of the pie, meaning market share; grow the pie itself by increasing the value of music; and become more efficient, providing greater cash flow, both for re-investment and for shareholder return.”
The company’s net income was up nearly 25% to $241 million, boosted by foreign exchange hedging activity and the sale of a $29-million of an investment. Free cash flow was up 12% to $296 million.
Other highlights from the company’s earnings and conference call:
» Within Recorded Music, digital and streaming revenue both fell by 3.9% and 3.7%, which reflects a 2% decline in subscription revenue and an 8.2%-decline in ad-supported revenue. If you strip out BMG’s termination and the digital partner’s license renewal, the company says recorded music streaming revenue was up 1.5% and subscription revenue increased 5.3%, while ad-supported revenue still fell by 7.9%. Nonetheless, physical revenue rose 7.8% thanks to the strength of releases by Linkin Park, Charli XCX, Teddy Swims, Mariya Takeuchi and Benson Boone.
» Music publishing revenue rose 6.3% to $323 million from growth in digital, performance and other revenue, partially offset by lower mechanical revenue.
» Warner completed multi-year publishing and recorded music licensing deals with Amazon and Spotify over the past year, Kyncl said, though he declined to provide much detail. The deal with Spotify notably includes a new publishing agreement with a direct licensing model with Warner Chappell Music for the United States and several other countries. “There’s more work to do with others and for all of this to cycle through, but this is a really great step in the right direction.”
» Atlantic’s market share ticked half a percentage point up, a small win Kyncl attributed to the growing investments made in A&R last year. He said the investments came as a result of money left over after it made” organizational changes and investments into technology … [and] exited some non-core businesses.” Kyncl later said, “Our goal was to reinvest the majority of those savings into strategically important initiatives that will propel our business forward. This enabled us to increase our A&R investment by double-digits last year and this year.”
» Kyncl said buying Tempo is “a great example” of the company’s acquisition strategy. “As we become more efficient, we are creating a virtuous cycle that will enable greater reinvestment that delivers accelerated growth.”
Spotify and Warner Music Group have signed a new multi-year agreement covering both recorded music and music publishing, following Spotify’s similar deal with Universal Music Group earlier this year. The partnership, announced today (Feb. 6), aims to drive innovation and increase the value of music for artists, songwriters and fans.
The agreement focuses on advancing audio-visual streaming, expanding music and video catalogs, and, notably, introducing new paid subscription tiers with exclusive content bundles. It also reinforces “artist-centric” royalty models that reward artists for attracting and engaging audiences. Additionally, the new publishing deal introduces a direct licensing model with Warner Chappell Music in several countries, including the U.S.
In a statement, WMG CEO Robert Kyncl emphasized the collaboration’s role in expanding the music ecosystem and delivering value to artists and songwriters.
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“It’s a big step forward in our vision for greater alignment between rights holders and streaming services,” Kyncl said. “Together with Spotify, we look forward to increasing the value of music, as we drive growth, impact, and innovation.”
Spotify CEO Daniel Ek highlighted 2025 as a pivotal year for Spotify’s innovation, “and our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings. Together, we’re pushing the boundaries of what’s possible for audiences worldwide—making paid music subscriptions more appealing while supporting artists and songwriters alike.”
During Warner Music’s August 2024 earnings call, Kyncl addressed the relationship between labels and digital service providers and refuted the notion that they are entrenched adversaries. “I know that investor attention has recently been focused on the dynamics between labels and DSPs, with some speculating that we’re adversaries playing a zero-sum game,” he said. “That’s simply not the case. We’re actively engaged with our partners around ways to drive growth for all of us.”
WMG announced its new pact with Spotify moments before reporting results for is fiscal first quarter, which saw a dip in revenue that it attributed to the termination of its distribution agreement with BMG, among other factors. The label group on Thursday also announced that it had agreed to purchase a controlling stake in Tempo Music Investment, a catalog company that owns rights to songs by Wiz Khalifa, Florida Georgia Line and others, in a deal sources say is worth several hundred million dollars.
As of January, Warner Music Group (WMG) executive vp/general counsel Paul Robinson has worked in the legal department of the company for 30 years. During that time, he has seen “three different owners, seven CEOs and we’ve gone private and public two different times,” he says. “There also have been all of these macro changes in the music business” — which is something of an understatement. What hasn’t changed much, he says, is the culture of the company: “It’s always been an artist- friendly, songwriter-friendly culture, and we’ve always had a great relationship between recorded music and publishing.”
Robinson was slated to receive the 2025 Entertainment Law Initiative Service Award on Jan. 31 at the organization’s annual Grammy Week luncheon at the Beverly Wilshire Hotel. But since the event was canceled in the wake of the Los Angeles wildfires, he will receive the honor at next year’s gathering.
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Robinson started at WMG in 1995 after working at Mayer Katz Baker Leibowitz, which at the time did a significant amount of the label group’s legal work. Robinson got the top job in 2006 and helped steer the company through the worst years of the music business, to its 2013 acquisition of Parlophone Label Group from Universal Music Group, and into the streaming-led recovery and a successful 2020 initial public offering.
Like the rest of the industry, WMG is now at a point where streaming growth in developed markets is slowing and the challenges of artificial intelligence (AI) loom — and in a way that will especially test it as the smallest of the three majors. Which is why, Robinson says, “From my point of view, it’s important to be perceived as, and to be, the most artist-friendly, songwriter-friendly company” — a message that WMG sent by being the first major to adopt artist-friendly policies on “digital breakage” in 2009 and on sharing gains from equity sales, such as with Spotify in 2016. “Jac Holzman, when he started Elektra, used to have this love-and-affection clause in his contracts that said the label will treat artists with love and affection and the artist will treat the label with a modicum of respect,” Robinson recalls. “And it’s great because it brings to mind the imbalance: Artists will not always love their labels, but we always have to love them and we hope that they at least respect us.”
Your father is Irwin Robinson, the prominent publishing executive who ran Chappell/Intersong and then EMI Music Publishing. Did you purposefully decide to follow him into the same business?
That was how it ended up, but they say there are no accidents. In some ways, I was afraid to go into the music business. There were huge shoes for me to step into. I thought I wanted to be a doctor, and then I worked at a hospital one summer and I decided, “Maybe I don’t want to be a doctor.” I was a huge music fan as well as a singer, and I thought, “I’ll just go to law school and see what happens.” Maybe I was avoiding it.
Robinson’s father gave him this 1956 letter from legendary songwriter-composer Cole Porter to his lawyer, John Wharton, at Paul Weiss Rifkind Wharton & Garrison. “I like it because in a single letter, he talks about the relatively important issue of assigning his renewal rights to Chappell and the relatively unimportant issue of a songbook being able to stay on a piano rack,” he says. “God is in the details.”
Krista Schlueter
Billboard can reveal that you were the singer in a new wave band.
I was one of the singers. We were called The Doctors. The musicians in the band all wore scrubs, and we were the hit of Williams College campus for a year. In fact, they asked The Doctors to play at my college reunion and we’re doing it.
You’re one of the few people who has been in the same department at the same company since the Napster era. Any lessons from then on how the industry should deal with AI?
Probably to lean into change. Maybe there were people in 1999 at Warner Music Group who saw peer-to-peer coming, but I feel like we were caught very much off guard, and I don’t think that’s been the case with AI. Also, with peer-to-peer, there wasn’t a great deal around until iTunes in 2003, so we’re also in a better place that way. There are services we can strike deals with now.
What are the best- and worst-case scenarios for the industry for generative AI?
[That’s] probably less of a general counsel question than [one for] business development, but I think the worst-case scenario is that somehow it’s determined that you don’t need permission to train an AI model and the market is flooded with a huge volume of content that dilutes legitimate music, in the same way services are flooded now with music that very few people listen to — but in turbo. The best case is that AI becomes an incredible tool for artists and songwriters and lets them up their game and release content in languages they don’t speak.
“This is a 1994 photo from my wedding of
my then-partners from Mayer Katz Baker Leibowitz & Roberts and their wives,” he says. “WMG was Mayer Katz’s biggest client.”
Krista Schlueter
The streaming model seems to be evolving. There’s talk of “Streaming 2.0.” What kind of terms are you looking for now in streaming deals?
Trying to lock in per-subscriber minimums and reduce discounts for family plans and so on. That’s where we are focused.
When you started in the music business, there were six major labels. Now there are three. Does that change the nature of competition?
Even though there are only three majors, it feels like it’s never been more competitive. All you have to do is look at the change in artist deals over time.
I’m assuming you mean that deals now favor artists? Is it harder to invest in them under these circumstances?
No. Every year, our A&R spend increases. When I started, we were getting eight-album deals, but we were signing artists where, because there was no internet, their following was probably their hometown and they needed a huge amount of development. Today, we hardly ever sign an artist that doesn’t have a significant social media presence, and those artists don’t need as much development.
“Believe it or not,” Robinson says, he has had the same office chair for 30 years. “It definitely looks like a chair from 1995, but I just can’t seem to let go of it.”
Krista Schlueter
Now you also compete with distribution deals.
From an artist’s point of view, there’s a trade-off. In a distribution deal, you’re getting a bigger piece of the pie, but you’re getting less development and it’s a shorter-term relationship, so there’s probably not going to be as much investment. If you sign a frontline label deal, you’re committing to more albums and you’re getting a smaller piece of the pie, but you are getting a whole team of people behind you to develop your career. The great thing is that artists have more choice than ever.
How do you make sure artist contracts feel like win-win deals?
Deals get renegotiated all the time if they’re out of sync. If there’s an artist with a small record deal that has tremendous success, the economics of their next albums are going to look different. We’re in the personal services business and we’re in the relationship business. We want to maintain the best relationships with artists and songwriters.
Is there a deal you did that you’re especially proud of?
When we bought Parlophone Label Group, that was a huge regulatory fight, and I would say it was a win-win. UMG had to sell Parlophone, we were the best buyer, and they were looking for a good price, which today looks like a really low price. We paid about $800 million, probably about a seven-and-a-half times multiple, which at the time was huge. We were much more U.S. weighted in our revenue, and we bought a bunch of European assets. So it rebalanced us in terms of geography, and we acquired great repertoire and some great artists.
What has been some of the most memorable litigation that you have overseen? The case in which Led Zeppelin was sued for copyright infringement by a trustee for the estate of Spirit frontman Randy Wolfe comes to mind.
The exciting thing about the Zeppelin case was not only winning, after having been dealt a bunch of blows — we won in trial court and we were reversed — but changing the trajectory of copyright infringement litigation. It was a beat-back of what was, I think, the bad law of the “Blurred Lines” case.
Robinson never met Prince, but he is such a big fan that two people gave him signed limited-edition lithographs of the New Yorker cover commemorating the artist’s death. “He was an incredibly distinctive artist. For his first album, Warner Records let him do everything. They basically said, ‘Go in the studio and do it.’ That didn’t happen much in 1977.”
Krista Schlueter
This story appears in the Jan. 25, 2025 issue of Billboard.
In the summer of 2006, Madonna touched down in New York for a run of shows at Madison Square Garden in support of her album Confessions on a Dance Floor. One young attendee was Val Blavatnik. “It was my first live-music experience and I was just so blown away,” he recalls. “I knew from then, even before our family acquired Warner, this was an industry I wanted to be involved in.”
Blavatnik’s father, Len, founder of Access Industries, subsequently bought Warner Music Group in 2011. A dozen years later, Val made good on his childhood dream, starting as senior director of business development at Warner Chappell Music. In April 2023, he was elected to WMG’s board of directors.
Val currently attends Harvard Business School, but he has been in close conversation with the company’s executive leaders, including his friend Elliot Grainge, the new chief executive of Atlantic Music Group. “Elliot and I got very close” during the negotiations that preceded WMG’s purchase of 51% of Grainge’s 10K Projects label in 2023, Val explains. “I advocated for the original 10K acquisition and for Elliot in his new role at Atlantic.” He clarifies, however, “As a board member, I am proud of my role, but it was [WMG CEO] Robert [Kyncl’s] decision.”
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You spent a few years at Warner Chappell and investment bank LionTree before joining the WMG board. Why was it the right time to make that move?
Well, I was very honored to be invited, and I take the responsibility extremely seriously. There are a wide range of perspectives on our board. It’s a very collaborative room to be in. Being the youngest person on the board, I’ve tried to make my role about bringing a different perspective to the conversation. I’m also one of the people on the board who has worked directly with artists, managing them, being in the studio, helping to sign them. That on-the-ground, in-the-room experience is vital.
How closely do you work with leadership?
Robert is always open-minded, and we have some fascinating and productive discussions. Learning about publishing from Guy [Moot] and Carianne [Marshall] was invaluable, and I’ve been very fortunate to work with Tom [Corson] and Aaron [Bay-Schuck] on signing two young acts we’re very passionate about. [Blavatnik declined to name the acts.]
I’m probably most involved with Atlantic. The team and I have a fantastic, ongoing open dialogue. I’m fortunate to be able to help in any capacity which benefits the business — from strategizing about the future, to helping close an artist signing, all the way through giving my two cents on a song.
Why is Grainge the right pick to lead AMG?
Elliot is an incredibly talented leader. It’s been an absolute pleasure to work and collaborate with him. Most importantly, artists love him, his team is unbelievably passionate and committed. He has brilliant creative instincts, he’s fantastic at creating huge cultural moments, and he has a deep grasp of business. That makes him a triple threat.
Do you think the music business needs a generational changing of the guard?
The music business should constantly evolve and innovate, like any other successful business. It’s not so much about a generational shift, but more about having executives with bold, fresh ideas and the ambition to deliver outstanding results.
This story appears in the Jan. 25, 2025, issue of Billboard.
Welcome to Executive Turntable, Billboard’s weekly compendium of promotions, hirings, exits and firings — and all things in between — across the music business.
We have compiled ways music companies are coming together to support those affected by the wildfires across Los Angeles, plus a running list of organizations offering relief for musicians and music industry professionals, as well as a tally of affected industry events. More coverage here.
There’s been a changing of the guard at Warner Music Hong Kong, where Robin Ch’i has taken over from longtime managing director Gordon Lee, who is retiring after two decades of leadership. He reports to Simon Robson, who oversees Warner Music Group’s APAC recorded business until a permanent leader is named. Ch’i has been with WMG for 15 years, most recently as director of A&R, brand and business. He previously worked at Warner Chappell Music, focusing on artist development and brand strategies. To land a smooth transition, Lee will support Ch’i until the end of March. Under Lee’s tenure, the company has become a major force in the Asian music industry, developing top artists like Janice Vidal, Khalil Fong and MC Cheung Tin-Fu, while achieving 2.5 times revenue growth in the past five years, the company said in its announcement this week. Robson praised Lee’s contributions and expressed confidence in Ch’i’s leadership, emphasizing WMHK’s commitment to supporting artists and driving innovation “in this dynamic industry.”
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“Music has always been a source of magic for me; it’s not just my career, but a passion that enriches my life,” said Lee, who said he personally chose Ch’i as his successor. “I’m grateful to everyone at Warner Music Group, especially my dedicated team, whose support has been invaluable. I also want to thank our artists for their trust, allowing us to help them realize their dreams.”
Meanwhile…
Sid Fohrman, a prominent music industry lawyer, joined Paul Hastings LLP in Los Angeles as a partner and chair of the firm’s music industry practice. Repeatedly recognized by Billboard in our Top Music Lawyers list — we are talkin’ six years running — Fohrman specializes in high-stakes music industry transactions, including catalog sales, music licensing and securitization. He also advises on emerging media business models, artificial intelligence, and global sponsorships. His clients include media companies, music labels, funds, talent, and entrepreneurs, with notable representations for Primary Wave, BMG Rights Management, Warner Music Group, TikTok and HYBE America. Previously leading Willkie Farr & Gallagher LLP’s music and digital media practice, Fohrman enhances Paul Hastings’ entertainment and media platform, co-led by Erik Hyman and Ken Deutsch. Firm chair Frank Lopez praised Fohrman’s ability to handle complex transactions, “including in the dynamic music space” which he said “enhances our top-of-market capabilities for key players at the intersection of technology, media and entertainment.” Lopez added, “There are strong synergies between Sid’s practice and our roster of leading corporate clients as well as an evolving asset class for asset manager clients across many of our practices, including finance, M&A, private equity and funds, which will help us gain further market share.”
Joey Arbagey joined 19 Entertainment as the American Idol producer’s new executive vp of music, overseeing 19 Recordings, 19 Publishing and 19 Management. The music biz veteran is based in Los Angeles and will report to SPT nonfiction president, Eli Holzman, and EVP of production Rachel Dax. Arbagey was most recently the evp of A&R at Epic Records, where he played a pivotal role in the careers of artists including Camila Cabello, John K, Eddie Benjamin, Zara Larsson and AJ Mitchel, among others. During his lengthy tenure at Epic he worked closely with then-CEO L.A. Reid, overseeing a roster that included big names like Travis Scott, Meghan Trainor and Future. Earlier in his career, Arbagey worked in radio in San Francisco and later as vp of A&R at Arista Records and Island Def Jam Music Group. In 2007, he launched Near Records, later rebranded as Arbadel Productions, a consultancy, label, and production company. “We are so glad to bring Joey aboard as we work to evolve our music division to address the needs of artists in the music industry of today,” Holzman and Dax said. “His input will be invaluable as we continue to build the legacy of one of the most iconic institutions in music.”
Sony Music Publishing appointed Tatchara Longprasert as general manager of its new office in Thailand (SMP TH), making it the first international publisher with a dedicated local team in the country. Based in Bangkok, Longprasert will report to Carol Ng, president of Sony Music Publishing Asia. SMP TH aims to collaborate with Thai music industry stakeholders to foster international partnerships and develop opportunities for Thai composers and songwriters. Longprasert will focus on expanding SMP’s reach in Thailand’s growing music market. With over a decade of experience, Longprasert previously served as A&R Director at Sonray Music and held roles at Warner Music Thailand, BEC World PLC and S.M. Entertainment. Ng noted Thailand’s dynamic music scene, stating, “Thailand has a rich tapestry of sounds and stories. As Thai repertoire grows rapidly, more artists seek a dedicated music publishing partner with global networks and expertise. We look forward to supporting talented songwriters in SMP Thailand and sharing their work with the world.”
NASHVILLE NOTES: Kate Vastano joined Sound Talent Group‘s senior management team, focusing on maintaining its strong culture and aligning with future goals. An industry veteran, she brings expertise in recruiting, performance strategies and employee engagement. Vastano previously served as director of HR at The Agency Group and people operations manager at United Talent Agency … Shelby Paul, the director of communications at Big Machine Label Group, has left the company after nearly a decade. She began her journey with Big Machine in 2015 as an intern following her graduation from Central Michigan University and advanced to her director role in 2022. She’s reachable here … Alan Jackson appointed daughter Mattie Jackson as master blender for his Silverbelly whiskey. She has written two books about grief and hosts a podcast, In-Joy Life.
Mom+Pop Music co-owners Thaddeus Rudd and Michael Goldstone announced the launch of Pipes Music, a creative and digital agency that supports both signed and unsigned artists. Pipes offers content creation, social media strategy and management of select artist properties. Goldstone emphasized that Pipes helps artists streamline their creative process while maintaining their unique aesthetic across platforms. In a press release, Rudd highlighted the agency’s flexibility in supporting artistry. Additionally, Sullivan Brock leads the creative team, focusing on content shoots and live performance footage, while Emily Ferrell oversees user-generated content campaigns with assistance from Ella Parent and Shae Hicks. Pipes has successfully executed campaigns for artists like Maya Hawke and Magdalena Bay and is currently working with new Mom+Pop signing Chaparelle.
Cameron Kooklanfar is now an A&R manager at Prescription Songs, where since 2022 he has collaborated with artists such as Hayley May, Bantu, Shae Jacobs, Kevo, Dominique Sanders, Seb (1Mind) and Lourdiz. A standout achievement in the Angeleno’s career was organizing a songwriting camp with Insomniac, which resulted in the globally successful track “Sideways” by Gordo & Drake, co-produced by Bantu. Rhea Pasricha, Head of A&R, West Coast, commended Kooklanfar’s said Kooklanfar’s “tireless work ethic, knowledge across musical genres, and passion for identifying and nurturing the best talent makes him a great A&R.”
Concord elevated Megan Hall to senior vice president of business and legal affairs for Concord Music Publishing. Based in London, Hall will lead Concord’s UK legal team, oversee the global sub-publishing network, and manage the company’s relationship with digital licensing agent ICE. She’ll also work closely with svp Michelle Brown to support Concord’s songwriters on business affairs matters, while reporting to evp Duff Berschback. Hall brings over 20 years of legal expertise, with priors at DMH Stallard, Ministry of Sound and Sony Music Publishing. She joined Imagem Music in 2013 and transitioned to Concord following its acquisition of Imagem in 2017. Hall is also an active member of PRS’s Licensing Committee Advisory Group and the International Confederation of Music Publishers’ Legal Expert Group. Berschback praised Hall’s deep knowledge of the global music publishing environment, while chief publishing officer Jim Selby emphasized her strong connections. “As the Publishing division continues to grow globally, I know that Concord and the songwriters we represent will continue to be well served by Megan,” said Selby. “Her proficiency in legal matters and her deep roots in the music publishing community make her a great fit for this role.”
Phil Kano, a veteran rock promotion executive, has launched KILPHASO CONSULTING, focusing on promotion, marketing, and artist development. His first client is In De Goot Entertainment, where he will serve as an in-house consultant for projects involving Shinedown, Halestorm, Theory Of A Deadman, Black Stone Cherry, and Zero 9:36. Kano previously held the position of senior VP of rock promotion at Elektra Music Group and clocked over 25 years of experience with Roadrunner, Fueled By Ramen, Atlantic, 300 and Elektra, plus an early-career stint in RCA’s promo department. Phil can be reached here.
BOARD SHORTS: Cumulus Media appointed Steven M. Galbraith to its board of directors. A major shareholder of Cumulus, Galbraith brings extensive financial expertise, having held key roles at Kindred Capital Advisors, Herring Creek Capital, Maverick Capital, and Morgan Stanley. He has also taught securities analysis at Columbia University Business School and advised the Office of Financial Research. Beyond finance, Galbraith is active in non-profits, serving on boards for Tufts University, Success Academy Charter Schools and the National Constitution Center, and he holds positions on several corporate boards … The Library of American Broadcasting Foundation (LABF) elected four new board members: Heather Cohen, Mike McVay, Sam Bush and Ernesto Mourelo. The LABF Executive Committee re-elected Gary Chapman, Mary Collins, Jack Goodman, David Kennedy, and Ginny Hubbard for two-year terms, with Dave “Chachi” Denes joining the committee. Additionally, the LABF Board elected Heather Birks, Mike Carter, Chandra Clark, Harry Jessell, Deborah Parenti, Walter Podrazik, Dan Spears, John Taylor, Joyce Tudryn, and Dennis Wharton to new three-year terms.
Collin Citron, a seasoned music publicist, joined 2b Entertainment, the PR team led by Bobbie Gale and Luke Burland in Los Angeles. Previously, Citron was senior director of publicity at Elektra Records since 2018, where he managed national publicity campaigns for artists like Bailey Zimmerman, Panic! At The Disco, All Time Low, NEEDTOBREATHE and Fitz and The Tantrums. This new role marks a return for Citron, who began his career in 2014 with BB GUN Press, which merged with MixedMediaWorks in 2023 to form 2b Entertainment.
The New York Convention Center Operating Cooperation announced Joyce Leveston as the new CEO of the Jacob K. Javits Convention Center, effective March 10. Leveston, who brings over 30 years of industry experience, was previously the senior vp of convention centers at Oak View Group, overseeing 60-plus convention and conference centers in the company’s OVG360 portfolio. She has held senior roles at major convention centers across the U.S. and managed high-profile events like the Super Bowl fan fests and presidential inaugural balls. Hugh Carey, vice chair of NYCCOC, praised Leveston’s vision and passion, adding, “her leadership will not only inspire our team but will also enhance the experience for all who walk through our doors.”
ASM Global promoted Ryan Golden to GM of Pechanga Arena San Diego, a 14,000-capacity venue. Golden will oversee all aspects of daily operations, including purchasing, booking, marketing, finance, human resources, food and beverage, box office, production, maintenance, parking, security and emergency management. Golden has been with Pechanga Arena for four years as assistant GM to outgoing GM Steve Eckerson, who will transition to a part-time advisory role. Prior to joining ASM Global, Golden’s experience included a vp of events role for AEG’s Microsoft Theater and L.A. LIVE.
ICYMI:
Manu Ferradas
BMG named Johannes von Schwarzkopf as chief strategy officer and executive board member, overseeing global strategy, M&A and global licensing and synch operations at the Berlin-based music giant … Longtime rock and punk promoter John Reese and author Craig Duswalt joined forces to launch the Disrupt Artist Management Network (DAMN!) … and Manuela Ferradas joined SiriusXM in a senior role to oversee the Latin artist and industry relations team for SiriusXM and Pandora.
Last Week’s Turntable: Concord Forms New Digital Division
During the course of Robert Kyncl’s nearly two-year tenure as Warner Music Group’s CEO, the former YouTube exec has focused on positioning the historic label for longtime growth.
In early 2024, WMG reported record earnings but announced a 10% workforce reduction. Then, August saw a major leadership shakeup: Max Lousada exited, Julie Greenwald was briefly chairman of Atlantic Music Group before leaving, and Elliot Grainge became AMG’s CEO. Under Grainge, Atlantic restructured and new leadership came in at 10K Records and 300 Entertainment. These moves signaled a loud-and-clear generational shift in leadership, marking a transformative year for Atlantic and Warner.
Looking back at a year of bombshells and breakouts — success stories include Zach Bryan, Benson Boone, Teddy Swims, Charli xcx, Dua Lipa and more — Kyncl writes in a note to staff, obtained by Billboard, that he is grateful for their dedication in a year he has long-dubbed the “Year of the Next 10.”
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In the note, Kyncl writes that the company achieved significant milestones, including having the most listened-to artist (Bruno Mars), the No. 1 song of the year (Boone’s “Beautiful Things”), and the most in-demand songwriter (Amy Allen). He also highlights the importance of change and innovation in the music industry, celebrating the team’s success in delivering originality, which “gives this industry its energy and optimism.”
“We’ve not just helped our artists and songwriters do new, brave, and disruptive things, we’ve held ourselves to the same standard,” he writes. “The industry is at a pivot point, and the changes we’ve made this year put us on the front foot.”
He highlights that WMG was a clear leader in onboarding new talent in the marketplace, with artists like Boone, Swims and Allen receiving critical acclaim. Established acts also reached new heights, he notes, with Mars becoming the world’s biggest streaming artist, Charli xcx exhibiting “radical newness” during brat summer and Linkin Park making a notable return with a new singer. The company further expanded its reach through catalog reissues by the likes of the Grateful Dead, Madonna, David Bowie, Neil Young and Joni Mitchell, among others.
Kyncl writes that, internally, WMG has focused on growth by increasing A&R investments by double digits, overhauling leadership, and advocating for new pricing and royalty models in streaming. The company also embraced AI — Kyncl cites the recreation of Randy Travis’ voice as a prime example — and prioritized global market share through a streamlined structure.
Looking ahead to 2025, Kyncl encourages continued innovation, aiming to amplify unique voices, grow the music ecosystem and deepen fan engagement. He rounds out the memo by celebrating the team’s efforts and hinting at exciting projects on the horizon.
“There’s still plenty of work to do, but we’re getting stronger, faster, bolder all the time,” he says. “As I’ve said before, focus and simplicity brings great intensity and impact.”
Read the full memo below:
Hi everyone,
I wanted to take a moment to thank you for your incredible dedication and passion over the past year.
In January, I talked about 2024 being the Year of the Next 10, where we moved to set ourselves up for the next decade. We’ve ended the year with the No.1 most listened-to artist, No. 1 song of the year, and the most in-demand songwriter of the year. I know the last twelve months have been intense, and I’m so grateful to you all for rising to the occasion. We’ve achieved something that only a really collaborative and committed team could… We simultaneously delivered for our artists and songwriters, while doing the tough work of change.
And change is a necessity in this business… Music is nothing without the new. New sounds, new ideas, fresh looks, different directions. That’s what stands out. That’s what cuts through the noise. That blast of originality is what gives this industry its energy and optimism.
There are countless examples of innovative successes across the company. In a note like this, I can’t be comprehensive, so please excuse that I’ve picked just a few examples to highlight our trajectory.
NEW TALENT
When it comes to impactful new talent, we’ve led the industry this year.
Benson Boone had the biggest song of 2024 worldwide, and Teddy Swims had the biggest song of the year in the U.S., the largest market. Both are signed to Warner Records and Warner Chappell, and both are up for Best New Artist at the Grammys. Amy Allen became the planet’s hottest songwriter and is nominated for Grammy Songwriter of the Year, alongside WCM’s Jessi Alexander and RAYE.
Across the world, we have an extraordinary new generation lighting the way forward, including Artemas, Aziya, Bea and her Business, BENNETT, Bug Eyed, Dasha, Florence Road, Forrest Frank, Jeff Satur, Jordan Adetunji, The Marías, Michael Marcagi, Tokischa, Roxy Dekker, TitoM, and Yuppe.
NEW HEIGHTS
We’ve also helped established artists and songwriters reach new heights, telling their stories in bold, new ways.
Bruno Mars became officially the biggest artist in the world (smashing records with 138 million monthly listeners on Spotify!), thanks in part to new collaborations, including with ROSÉ, who herself set new streaming records for a K-pop soloist.
Then there’s the radical newness of Charli xcx’s Brat, or the record-breaking return of Linkin Park, with a soulful new singer. As well as incredible new projects from stars around the world such as Alex Warren, Ana Mena, Ayed, AYLIVA, Bailey Zimmerman, Burna Boy, Cardi B, Charlie Zhou, Coldplay, CYRIL, Dani Fernández, David Guetta, Diljit Dosanjh, Don Toliver, Dua Lipa, Ed Sheeran, Fred again.., Geolier, Gunna, Iñigo Quintero, Jack Harlow, Kenya Grace, King, Lay Zhang, Lil Uzi Vert, María Becerra, Megan Thee Stallion, Michael Bublé, Miriam Bryant, Myke Towers, NLE Choppa, SCH, twenty one pilots, TWICE, and Zach Bryan to name a few; along with reissues of iconic music from David Bowie, Grateful Dead, Green Day, Joni Mitchell, Madonna, Neil Young, and Talking Heads… all of which won new fans, and drove new spikes in streams.
NEW WORLD
We’ve not just helped our artists and songwriters do new, brave, and disruptive things, we’ve held ourselves to the same standard. The industry is at a pivot point, and the changes we’ve made this year put us on the front foot.
There’s still plenty of work to do, but we’re getting stronger, faster, bolder all the time. As I’ve said before, focus and simplicity brings great intensity and impact:
➞Due to the changes we’ve made, we’ve delivered on our promise to put more money behind the music… growing our A&R investment by double digits.
➞We prioritized market share growth, bringing in pioneering new leaders in major markets, including the U.S. with Atlantic and in Japan, while investing in talent and entrepreneurs in high-growth territories, such as India.
➞We’ve shrunk the world, flattening our company, to make it easier for artists to break worldwide, while fully globalizing our catalog and distribution services.
➞We’ve successfully advocated for innovation in pricing and royalty models at the streaming services, while demonstrating the potential of AI (with Randy Travis still my personal favorite example!).
The throughline here is our powerful ability to amplify unique voices, crank up the contrast, and bring the shock of the new. Going into 2025, let’s lean into that expertise… we want to expand the music ecosystem while, crucially, growing our share. Our mission is to turn dreams into stardom and audiences into fans.
I hope you and your loved ones enjoy a well-deserved break. So many exciting things to come in 2025!
Robert
Paul Robinson, Warner Music Group’s executive vp/general counsel, will be recognized on Friday, Jan. 31, when the Recording Academy Entertainment Law Initiative (ELI) hosts its annual Grammy Week luncheon at the Beverly Wilshire Hotel in Beverly Hills. Robinson will receive the 2025 ELI Service Award.
“As a part of its mission, the Recording Academy works to advocate for creators, and the Entertainment Law Initiative advances this through legal representation, celebrating the achievements of entertainment law practitioners, and providing year-round educational opportunities to cultivate future leaders in the field,” Harvey Mason jr., CEO of the Recording Academy, said in a statement. “Paul exemplifies these values, and we are proud to honor him … for his three decades at Warner Music Group, where he has championed fair practices and guided the industry through transformative changes.”
Robinson joined Warner Music Group’s legal department in January 1995 as associate general counsel. In December 2006, he was appointed to his current role, in which he is responsible for WMG’s worldwide legal, business affairs, public policy, compliance and corporate governance functions. Before joining WMG, Robinson was a partner at the New York City law firm of Mayer, Katz, Baker, Leibowitz & Roberts.
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The Entertainment Law Initiative was established by the Recording Academy to foster discussion on legal issues shaping the music industry. Each year, the recipient of the Service Award is selected by the ELI’s executive committee.
The ELI Grammy Week Luncheon also recognizes the winner and runners-up of the Entertainment Law Initiative writing competition.
Individual tickets, along with a limited number of discounted student tickets, will be available for purchase on Wednesday, Dec. 11. For more information, visit https://www.recordingacademy.com/entertainment-law-initiative.
Grammy Week culminates with the 67th Annual Grammy Awards at Los Angeles’ Crypto.com Arena on Sunday, Feb. 2, broadcasting live on CBS and streaming live and on-demand on Paramount+ from 8-11:30 p.m. ET/5-8:30 p.m. PT. Prior to the telecast, the Grammy Awards Premiere Ceremony will be held at the Peacock Theater at 12:30 p.m. PT/3:30 p.m. ET and be streamed live on live.Grammy.com and the Recording Academy’s YouTube channel.
In the last four months, two of the three major labels have seen their stock price punished for missing expectations of subscription growth — effectively sending the message that in 2024, delivering substantial revenue gains isn’t enough. In its fiscal fourth-quarter earnings on Thursday (Nov. 21), Warner Music Group (WMG) revealed streaming growth of 8.2%, which was below some analysts’ estimates — helping explain why the company’s share price fell 7.4% on Thursday and erased approximately $1.29 billion of market value. The same thing happened to Universal Music Group in July — albeit to a far greater extent — when its lower-than-expected second-quarter subscription growth led to a 24% drop in its share price despite total revenue climbing 8.7%.
To say analysts and investors place a great deal of attention on streaming growth is an understatement. During WMG’s earnings call on Thursday, six of the 10 questions from analysts concerned subscription revenue, including topics such as drivers of expected growth, the setting of wholesale rates and how streaming royalties are calculated and distributed. That’s because analysts — and the investors they speak to — know that platforms such as Spotify and YouTube are critical to record labels and publishers’ fortunes.
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Judging from their introductory remarks, WMG and UMG would rather talk about their companies’ global expansions. On Thursday, WMG CEO Robert Kyncl highlighted the company’s focus on India, a country of 1.4 billion that he called “more like a continent than a country.” Currently dominated by ad-supported streaming, India has the fifth-largest gross domestic product but ranks just 14th amongst recorded music markets. But Kyncl said he believes the country “will become an increasingly influential global force in the music business,” adding that WMG is “well positioned to keep taking market share” through acquisitions and partnerships. Meanwhile, during UMG’s latest earnings call on Oct. 31, CEO Lucian Grainge talked about acquisitions, partnerships and expansions in emerging markets such as China, Thailand and Nigeria.
Constantly pulled back to the topic of music subscriptions, Kyncl and WMG CFO Bryan Castellani attempted to quell any concerns that streaming growth is petering out, explaining how WMG intends to obtain high, single-digit subscription revenue growth even as that growth has been slowing. Relatively few Americans have a music streaming subscription, at least when compared to streaming video-on-demand (SVOD) options such as Netflix; during the call, Kyncl noted that subscription penetration in the U.S. is 30% while SVOD services are at 50%. “There’s a lot more to grow in United States for music,” he said.
Lately, though, the success of music streaming platforms has looked one-sided. The licensees, not the licensors, appear to be keeping most of the spoils of price increases and subscriber acquisitions. As one WMG analyst put it, the major labels’ content is a must-have for digital service providers (DSPs) such as Spotify, but “a lot of value has instead accrued to the DSPs” rather than content owners. At least by one measure, Spotify has reaped the benefits of price increases far more than major labels. Since Spotify announced its first U.S. price increase on July 23, 2023, its share price has risen 177%, compared to 3% for UMG and 4% for WMG.
To level the playing field and reap more of the benefits of subscription music’s popularity, WMG intends to tweak pricing — which it believes the labels will benefit from — to help drive continued subscription growth. For starters, the company expects improvements to come from the launch of a high-priced subscription tier for superfans that Spotify CEO Daniel Ek said in July could cost $17 or $18 per month. Kyncl and Castellani also pointed to changes in wholesale prices that would establish per-subscriber minimums to reduce the discounts given to family plans and other multi-user accounts. “With both subscriber growth and opportunities for wholesale price increases, the formula for streaming growth is strong and there’s plenty of room for acceleration,” said Kyncl.
The U.S. and other mature streaming markets will deliver subscription growth more immediately than emerging markets still dominated by ad-supported streaming. But over the long term, said WMG, high-growth, emerging markets like India have substantial potential. As Kyncl explained, WMG is betting on countries like India that have rising gross domestic product (GDP) because advertising spending will increase as GDP increases —and rising GDP will eventually translate to more subscribers. Again, Kyncl talked about closing the gap between music and TV; in India, he put the number of music subscribers at 15 million and the number of households with TVs at 100 million.
Streaming has shaped today’s music business. WMG and UMG would not have gone public had it not transformed a once-moribund industry. Investors wouldn’t have poured money into Hipgnosis Songs Fund and other investment funds were it not generating massive royalties for aging catalogs. And prominent institutional investors such as Blackstone and Pimco would not be so enthusiastic about music assets if streaming couldn’t open new markets around the world.
That strong enthusiasm has created high expectations, though, and labels’ mandate to deliver high, single-digit subscription growth is going to transform streaming in the years to come. Prices will be higher. Streaming services will launch high-priced superfan tiers. And if the labels have their way, ad-supported on-demand streaming would no longer be free. However things shake out, the majors seem confident they can deliver.
Warner Music Group (WMG) reported earnings on Thursday (Nov. 21), and there was much that its executives wanted to discuss beyond the usual profitability metrics and balance sheet management. On a call with financial analysts, CEO Robert Kyncl discussed Warner’s recent reorganization — how it built a simpler, flatter, faster structure, according to him — as well as why he’s so confident that streaming revenues will continue to deliver strong growth and the company’s M&A and internal investment plans.
Here are some of the highlights.
Bullish on subscription streaming growth
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WMG executives said they expect subscription streaming revenue to continue to grow by high single-digit increases, and analysts peppered them with questions about how they will achieve that. WMG CFO Bryan Castellani said that roughly 70% of that growth will come from more people paying for music streaming subscriptions everywhere — from markets like the United States, where many already pay to stream music, to places like India, where far fewer people do so but where there is much room for growth. To bolster his argument, Castellani pointed to the 70 to 80 million new subscribers he says began paying for streaming subscriptions in the past year.
Additionally, WMG gained a greater share of the most streamed songs thanks to popular releases from Rosé, Bruno Mars, Teddy Swims, Benson Boone, Charli XCX, Zach Bryan and others. Kyncl said WMG’s market share of the Spotify 200 has increased by 10 percentage points since he became CEO.
The final reason for their optimism is the various price increases at the DSPs that Kyncl believes his side will benefit from, including things like higher wholesale prices earned off of family plans and other multi-user subscription streaming plans that currently get discounts; higher-priced subscriptions for super fans; and premium audio or further audience segmentation. “Wholesale prices generally go up,” Kyncl said. “It may not have happened that way in music in the past, but it is how it happens in 99% of industries. We are just trying to align with the way the world works.”
Elliot Grainge’s Star Rises Inside and Outside WMG
Kyncl kicked off the call with comments about WMG’s recent restructuring, which included promoting Elliot Grainge, the founder of the independent label 10K Projects and son of Universal Music Group chairman/CEO Lucian Grainge, to lead the renowned Atlantic Records Group. Kyncl described Atlantic and Warner Records as “important twin engines of growth” and said Elliot’s team has “an impressive ability to discover extraordinary talent across multiple genres and find fresh ways [to make them] stand out from the crowd.” Kyncl added that Warner Records, under the leadership of Aaron Bay-Schuck and Tom Corson, is adroit at driving hits and creating superstars.
“I cannot stress enough how exhilarating it is to watch the creative success of both Warner Records and Atlantic are having,” Kyncl said.
An analyst later asked Kyncl what it is about Grainge that worked at 10K and if that will translate to future success at Atlantic, acknowledging that Grainge “has stepped into a much larger, broader and important role.”
Kyncl said 10K has demonstrated “phenomenal growth from top line to bottom line” since Warner began a joint venture with the independent label last year, and he thinks Grainge and his team’s digitally native approach gives Warner an edge for how music is being consumed and shared and how artists are being discovered today.
Kyncl also praised Grainge for his intensity — “I love that about him” — and said he takes strong points of view when making decisions, adding that doing so appeals to talent.
The silver lining of cost cuts
Cutting costs, reducing its headcount and restructuring some label groups saved an estimated $260 million on an annualized basis, WMG said in September — money Kyncl says is now freed up for dealmaking and internal investments.
“Our focus on efficiency has freed up capital, enabling us to increase our investments in growth opportunities,” Kyncl said in prepared remarks.
WMG also increased investment in A&R by around 11%, allowing it to sign more new artists and songwriters and to make more catalog acquisitions.
Additionally, WMG continues to explore companies to acquire that could fill a need within its larger companies — so-called bolt-on acquisitions. Billboard reported in June that WMG is shopping for an alternative distribution company, and it poached Goldman Sachs investment banker Michael Ryan-Southern this summer to lead M&A; WMG’s companies around the globe are now exploring the gaps in their services and looking to Ryan-Southern’s team for suggestions on acquisitions to fit those needs. The company is also exploring the launch, with equity partners and debt facilities, of a catalog acquisition platform and fund for artist advances, sources tell Billboard.
Warner Music Group reported on Thursday that total revenue for its fiscal year rose 6% compared to a year-ago on strong digital and streaming subscription revenue. The company reported $6.43 billion in total revenue for the twelve months ending on Sept. 30, up 6% from the roughly $6 billion the company generated in the 12-months […]