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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 […]
The music business is getting back to basics.
In a few short years, the major labels have gone from investing in and partnering with speculative tech startups to pouring money into regionally focused music companies across Asia, Africa and Latin America. After a brief flirtation with NFTs and live-streaming businesses, anything resembling a faddish technology seems to be out of favor, judging from the deals and partnerships they’ve been making lately. Instead, the majors are targeting old-school music companies that own catalogs and develop artists — and can benefit from the majors’ global network of distribution and other services.
In 2024 alone, the three majors — Universal Music Group, Sony Music Entertainment and Warner Music Group — have acquired or invested in 11 record labels, music catalogs and service providers in small or developing markets. The flurry of deals — there were even more in 2023 and preceding years — provides the majors with more content for their ever-increasing distribution pipeline and more international artists to take to Western markets.
Take UMG’s run of acquisitions and investments in 2024: the remaining stake of European indie label group [PIAS], the remaining stake in the catalog of Thai music company RS Group, a majority stake in Nigerian record label Mavin Global and the outright acquisition of Outdustry, a multi-faceted company with an artist- and label-services arm that focuses on China, India and other high-growth emerging markets. Outdustry will be a division of Virgin Music Group, UMG’s fast-growing distribution and artist services company that includes distributor Ingrooves Music Group and Integral, formerly the artist services division of [PIAS].
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UMG, in particular, is letting the world know about its intentions. On Thursday (Oct. 31), UMG CEO Lucian Grainge dedicated much of his earnings call opening statements to the company’s efforts to expand into potentially lucrative markets that merited little attention before legal streaming services replaced digital piracy. UMG plans to make “several other investments” before the end of the year, CFO Boyd Muir said during the earnings call. In total, he said, investment spending in the second half of the year will be 350 million to 400 million euros ($380 million to $434 million).
The focus on emerging markets and artist services is a noticeable change from a few years ago. When NFT prices soared and fans were stuck at home during the pandemic, the majors invested in blockchain, virtual reality and live-streaming startups. Today, as the majors face slowing streaming growth in mature markets and the needs of an increasing number of independent artists, they’re focused on building a global network of service providers with an eye on up-and-coming markets.
The focus on emerging markets goes beyond acquisitions. In September, UMG launched a new company, Universal Music Group Greater Bay Area, that will be based in Shenzhen, making “the first time a major music company has established a division in China’s Greater Bay Area, the world’s most populous urban area,” the company said.
Another development mentioned on UMG’s earnings call was GTS, a global talent services business in Latin America. In October, GTS became a standalone company separate from UMG’s record labels. “By separating from our local labels,” Grainge explained, “GTS will now be able to also offer its services to artists outside of the UMG family.”
Grainge and Muir painted a picture of a global business determined to expand outside of the mature markets they know best and build a presence in high-growth ones. UMG’s competitors — including independent Believe — are doing the same.
WMG has also had a busy year investing in traditional music companies. In March, WMG purchased a stake in India’s Global Music Junction (India’s The Economic Times reported it was a 26% stake) and launched Warner Music South Asia in April. Last year, the company took a majority stake in Divo, an Indian digital media and music company. Earlier this week, CEO Robert Kyncl told The Economic Times that China and India are the company’s top markets for expansion. “We’re already doing great in India, but it can be a much bigger part of our story,” Kyncl told the paper.
The majors continue to buy catalogs, of course. This year, Sony Music purchased Pink Floyd’s recorded music catalog (in addition to merchandising and name and likeness rights) and UMG bought a minority stake in Chord Music Partners, which holds the rights to over 60,000 songs. Expensive song catalogs give the majors rights to assets with long, productive lives. But given the enormous size of these companies, artist catalog acquisitions barely move the revenue needle. A legendary artist’s catalog might cost $200 million but generate a steady $10 million a year — a healthy sum but a pittance to a company with annual sales exceeding $12 billion.
Rather than pour money into just catalogs, the majors are buying entire companies and building new businesses with growth potential. As Morgan Stanley analysts wrote in an investor note about UMG on Thursday (Oct. 31), earlier acquisitions have had “a negligible effect on revenue and a small impact on profit growth.” But in the future, they are likely to be a more important driver of revenue growth, and Morgan Stanley expects UMG’s financial reports will break out their impact (e.g. reported revenue vs. organic revenue).
In buying regional music companies and building artist-services business, the majors are also taking a defensive measure. Independents such as Believe have been investing in local markets for years. In 2024 alone, Believe purchased the remaining stake in Turkish record label DMC and acquired Indian label White Hill Music’s music catalog and YouTube channel. Independent distributors such as UnitedMasters, Stem, Symphonic Distribution and Create Music Group have given artists a viable alternative to major label-owned systems. The majors are simply changing along with the market.
In 2012, UMG acquired the recorded music assets of EMI Music and later sold some pieces to WMG to satisfy antitrust regulators. Opposition to greater consolidation in the U.S. and Europe means it was probably the last acquisition of its size in those regions. (WMG’s brief flirtation with buying Believe in April and May quickly drew opposition from French indie labels.) There’s less opposition to more gradual growth taking place elsewhere in the world, though. The majors are continuing to expand, but they’re taking many small steps, not single EMI-sized leaps — and they’re doing it through old-fashioned music businesses.
Sandbox Succession, the legacy division of Sandbox Entertainment, partnered with the Patsy Cline estate through Patsy Cline Enterprises. Under the agreement, Sandbox Succession will collaborate with Cline’s daughter and heir, Julie Fudge, to expand her legacy across film, TV, publishing, merchandising, hospitality and licensing. Gregory Hall, a key player in the management of Cline’s estate, will remain an instrumental member of the team. A new biography and documentary on Cline are both in development. Sandbox Succession also represents the estates of Johnny and June Carter Cash and Loretta Lynn.
Business-to-business digital music platform Tuned Global forged a partnership with streaming fraud detection company Beatdapp, through which Tuned Global will incorporate Beatdapp’s fraud detection capabilities into the Tuned Global platform. The deal will help Tuned Global ensure that client royalties are fairly distributed to rights holders. Beatdapp also has deals in place with Universal Music Group and the Mechanical Licensing Collective.
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Oak View Group (OVG) and Middle East event management and venue operator Ethara struck a joint venture to enable OVG’s entry into the Middle East market. Under the agreement, Ethara — which operates venues in the United Arab Emirates, including the Etihad Arena, Etihad Park, Yas Marina Circuit and Yas Conference Centre — will provide OVG with knowledge of local markets, with the two companies exploring growth opportunities together across the region. Ethara will also work closely with Rhubarb Hospitality Collection (RHC), a British venue caterer recently acquired by OVG, to improve the fan experience by providing food, beverage and hospitality services at venues across the Middle East.
Dreamliner, a provider of upscale travel coach buses for entertainers, acquired two events logistics companies: Denver-based Shomotion and Nashville-based Show Pro, with founders of each company joining Dreamliner’s executive team. Dreamliner will retain all Shomotion and Show Pro employees and expand its footprint by adding Shomotion’s Denver facility and Show Pro’s Nashville facility. The acquisition adds over 70 trucks and 220 trailers to Dreamliner’s offerings. – Jessica Nicholson
AtVenu, a leading provider of live event software and payment solutions, received a $130 million equity investment from Sixth Street Growth. The partnership will allow atVenu to expand and speed up the company’s growth into new live event markets, including sports and food and beverage. AtVenu helps ease the process of managing locations, inventory and the deployment of point-of-sale hardware while offering real-time data for organizers to optimize the event experience. According to a press release, the company processes more than $1.6 billion in merchandise and food and beverage volume every year and works on more than 125,000 events annually, from small clubs to stadiums. Raymond James served as atVenu’s financial advisor in the transaction.
Armada Music Group’s BEAT Music Fund acquired several new catalogs. They include the artist shares from a portion of techno pioneer and artist Kevin Saunderson‘s Inner City catalog; master and artist royalties for trance DJ and Coldharbour Recordings owner Markus Schulz; and the catalog of Robbie Rivera’s dance label Juicy Music. BEAT’s roster, through acquisitions, also includes Sultan + Shepard, Jax Jones, Amba Shepherd, VIVa MUSiC, Sola Records, King Street Sounds and Chocolate Puma.
Warner Music Group (WMG) Benelux acquired Netherlands-based record label Cloud 9 Recordings, which counts artists including Claude, Jaap Reesema, Kris Kross Amsterdam, Snelle and Turfy Gang on its roster. Under the deal, the Cloud 9 team will relocate to The Amsterdam Music Harbour, which serves as the creative hub of WMG Benelux in the Amsterdam Houthavens. Raymond van Vliet will retain his role as president of Cloud 9, which will remain a separate label, as well as his responsibilities at Blue Skies Publishing. Along with the acquisition, WMG Benelux entered an exclusive global administration agreement with the Cloud 9-affiliated Blue Skies Publishing, which represents songwriters including Claude, Davina Michelle, Edwin van Hoevelaak, Flemming, Frank van Etten, John Dirne, La Fuente and Snelle and owns several catalogs. Blue Skies Publishing will continue to manage the creative process with its current team, while its office in the Dutch town of Laren will serve as a satellite office for Cloud 9.
Moombix, described as a music education platform enabling adult hobbyists and aspiring music professionals to have one-on-one online classes with expert teachers, closed a seed funding round of over 1.9 million pounds ($2.47 million), led by Iceland’s Frumtak Ventures with participation from angel investors. The money will be used to scale the Moombix marketplace and improve the user experience, accelerate customer acquisition and prepare for a strategic launch into the U.K., where 200 teachers have already signed up to offer classes, according to a press release. Moombix offers classes on instrument learning, voice coaching, DJing, production and more.
Downtown-owned business-to-business distributor FUGA struck a new partnership with UNIFIED Music Group, a multi-service music company that operates across Melbourne, Syndey, L.A., New York, Nashville and Toronto. Under the deal, FUGA will support UNIFIED Recorded Music labels including UNFD and Domestic La La, which will leverage FUGA’s platform and suite of services, including strategic marketing and account management, social video management, YouTube channel partnerships, physical distribution, synch and licensing solutions via Downtown Music Publishing, and neighboring rights collection through Downtown Neighbouring Rights. Since 2022, UNIFIED has been a client of Downtown-owned royalty accounting platform Curve.
Live Nation signed a deal to manage Allas Live, a 2,500-capacity open-air venue within the Allas Sea Pool complex in Helsinki, Finland. Under the deal, Live Nation will also manage the Allas Live outdoor concert series in partnership with Allas Sea Pool.
ASM Global reached an agreement with the City of Worcester, Mass., to extend ASM’s management services of the city-owned DCU Center Arena and Convention Center. The five-member Civic Center Commission, which oversees ASM’s management contract on behalf of the city, voted unanimously to recommend the contract extension. As part of the 10-year extension, ASM has committed to a $3.5 million investment in the DCU Center that will focus on enhancing food and beverage operations, creating digital advertising opportunities and implementing further technology upgrades.
Acrisure Arena, located in Palm Springs, Calif., announced Silvercrest as the official sponsor of its exclusive outdoor VIP space, the Silvercrest Compound. The space includes a nine-hole mini golf course along with bocce ball, pickleball, half-court basketball, fire pits, and food and beverage offerings just steps away from the stage.
As the Warner Music Group continues to reshuffle its executive ranks, the company has made two new announcements today (Oct. 7).
First, Eric Wong, who has been chief marketing officer at the major label since 2020, will shift into the newly-created role of global head of A&R, recorded music, and assume the presidency of East West Records, which was originally launched in 1955 as part of Atlantic Records.
As part of that transition, WMG’s executive vp of global marketing Jessica Keeley-Carter has been promoted to step into the role of chief marketing officer, recorded music. Keeley-Carter has been at WMG since 2019, when she joined as senior vp of global marketing, before being promoted to executive vp in 2022. Both Wong and Keeley-Carter will report to WMG CEO Robert Kyncl.
“Eric’s newly-created role leans into his long-standing relationships within the artistic community and his deep understanding of how music travels around the world,” Kyncl said in a statement announcing the news. “Jess is an expert marketer and an inventive leader, who will help us orchestrate best-in-class ways of cutting through the noise in an increasingly complex and cluttered world.”
These moves are part of the broader restructuring of WMG that Kyncl announced in August, which was in pursuit of what Kyncl said at the time was a “flatter structure” for the company. As part of those moves, WMG CEO of recorded music Max Lousada exited the company, and Elliot Grainge was named as the new CEO of Atlantic Music Group, while Kyncl himself took on direct oversight of the heads of global catalog, marketing, distribution company ADA and fan and merch division WMX. As part of the fallout of the moves, longtime Atlantic leader Julie Greenwald, 300 Elektra Entertainment chairman/CEO Kevin Liles and a host of senior Atlantic and Elektra executives also departed the company, among other moves.
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“I’m excited to build even closer relationships with our artists and put greater firepower behind our worldwide network to connect the dots, unlock new value and magnify opportunities for emerging talent,” Wong said in a statement. “I’d like to congratulate Jess on her promotion, and thank Robert for his trust in me to take on this new position.”
Wong, who years ago had served as a senior vp of marketing at Atlantic, returned to Warner in the global CMO role in 2020, after a decade at Universal Music Group that saw him rise to the role of COO of Island Records. With East West as well as his global A&R role, Wong will be tasked with “identifying local talents with global potential and accelerating their pathway to global success,” according to a press release. Keeley-Carter, prior to joining Warner, had worked at Meta overseeing commercial labor partnerships for Europe, the Middle East and Africa, and prior to that had also worked at UMG, where she spent eight years.
“With the collective WMG team collaborating even more closely in our new structure, we’ll be set up to take our artists and labels to new heights,” Keeley-Carter said in a statement. “I’m grateful to Robert for this opportunity, I’d like to thank Eric for his guidance and partnership over the years, and I’m looking forward to continuing our work together.”