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Warner Music Group (WMG) revenue reached a record $1.75 billion from October through December, the company announced Wednesday (Feb. 7). That’s up 17.5% from the prior-year quarter (up 15.9% at constant currency), as both the recorded music and publishing divisions posted their best-ever quarterly revenues.
With Spotify and other streaming services having raised prices in 2023, WMG’s digital revenue increased 16% and streaming revenue grew 16.6%. The company also posted gains in physical sales, licensing revenue and music publishing performance royalties, though the company saw declines in recorded music artist services and expanded rights revenue. Net income rose 55.6% to $193 million and operating income improved 33.6% to $354 million.
“These results reflect the impact of our chart-topping artists, hit-making songwriters, iconic catalog, and laser focus on execution by all our teams,” CEO Robert Kyncl said in a statement. “As we deliver our plan to accelerate our growth, we are becoming more efficient, increasing operating leverage, and freeing up more funds to invest in music and tech, which in turn will drive further sustainable growth.”
Moments after WMG released the quarter’s results — an earnings call will take place Thursday morning (Feb. 8) — news broke that the company will eliminate its staff by 10%, primarily through the sale of owned and operated media companies such as Uproxx and HipHopDX. The company will also eliminate its in-house ad sales function and plans to wind down its podcasting brand, The Interval, as well as social media publisher IMGN. The reductions will free up $200 million in cost savings that can be reinvested elsewhere, Kyncl wrote in a memo to staff obtained by Billboard.
WMG shares were up 6.4% to $36.19 in after-hours trading following the late afternoon release of earnings results and staff reductions.
Excluding three extraordinary items, WMG’s revenue growth was 12.1% (10.6% at constant currency). A previously disclosed licensing agreement extension for an artist’s catalog added $68 million of revenue and a digital licensing agreement renewal added $27 million to the quarter. The termination of a distribution agreement with BMG resulted in $13 million less revenue than the prior-year quarter.
Recorded music revenue improved 16.6% to $1.45 billion on the success of Zach Bryan, Bruno Mars, the Barbie soundtrack and Jack Harlow, whose track “Lovin on Me” first reached No. 1 on the Billboard Hot 100 singles chart in December and recently spent its fourth non-consecutive week atop the chart dated Feb. 3. The segment’s digital revenue grew 13.1% to $908 million while physical revenue climbed 15.8% to $154 million. Licensing revenue jumped 84.5% to $179 million.
Music publishing revenue grew 21.6% (19.7% at constant currency) to $304 million thanks to a 32.2% improvement in streaming revenue and a 31.5% gain in digital revenue. Mechanical royalties — which are tied to downloads and physical purchases — rose 7.1% to $15 million. Publishing’s synch revenue was flat at $39 million as lower commercial licensing activity in the United States was offset by the timing of some legal settlements.
WMG’s margins improved nearly across the board in the quarter. Company-wide, the company’s operating margin rose 2.5 percentage points to 20.3% and its adjusted operating income before depreciation and amortization (OIBDA) margin rose 3.3 percentage points to 25.8% (and was flat excluding BMG’s termination, the license extension and digital license renewal). Recorded music’s adjusted OIBDA margin rose 4.4 percentage points to 28.5% and its operating margin improved 3.1 percentage points to 25.9%. The publishing division’s operating margin rose 1.1 percentage points to 20.7% while its adjusted OIBDA margin declined 0.5 percentage points to 28.3%, due primarily to the impact of exchange rates.
Warner Music Group announced Wednesday (Feb. 7) that its quarterly revenue grew 17% for the period ended Dec. 31, 2023, up 11% in normalized revenue, to $1.75 billion, its highest quarterly mark ever, ahead of its earnings call Thursday. At the same time, CEO Robert Kyncl announced in an internal memo to staff obtained by Billboard that the company will be reducing its workforce by 10%, or some 600 people, as part of a plan to free up $200 million in cost savings to reinvest into the company.
Much of that workforce reduction, Kyncl wrote, will come in the form of Warner’s owned and operated media properties — such as Uproxx and HipHopDX, which it acquired in August 2018 — as well as in corporate and support roles. “Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function,” Kyncl wrote. “These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news and entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN.”
Kyncl further added that Warner is making the move from “a position of strength,” noting that the company currently has five of the top 10 songs on the Hot 100, “and that’s the smart time to change, innovate and lead. Music is constantly morphing, so we need to morph with it.”
That $200 million in cost savings will be realized by the end of September 2025, Kyncl said in the memo; some of those laid off have already begun to be informed, while the “vast majority” will be notified “by the end of September 2024,” he writes.
“As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices,” the memo continued. “We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities,” which he says includes growing engagement with music, increasing the value of music and evolving how Warner’s teams work together.
Read Kyncl’s full note to staff below.
Hi everyone,
We just finished our first All Hands of 2024 from LA.
This is a pivotal moment in the evolution of this great company, so I wanted to make sure you heard about it directly from me. As I outlined in my note last month, 2024 is a year during which we will double down on our core business and move at an increased velocity to seize the incredible opportunities for music in the new world.
This week, our recording artists make up five of the top 10, and our songwriters have six of the Top 10, on the Billboard Hot 100. Today, we’re revealing our latest quarterly results: we grew 11% in normalized revenue. And with growing momentum in Recorded Music streaming and excellent results in Music Publishing, we hit our highest quarterly revenue ever. We’re in a position of strength, and that’s the smart time to change, innovate, and lead. Music is constantly morphing, so we need to morph with it.
Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind the music.
Our plan includes reducing our workforce by approximately 10%, or 600 people – the majority of which will relate to our Owned & Operated media properties, corporate and various support functions.
We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024. I recognize this is unsettling news. To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication. We’re fortunate that you’ve been part of the team. We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.
Earlier today, we began exiting our O&O media properties, as well as our in-house ad sales function. These are dynamic platforms, but they operate outside our core responsibilities to our roster. We’re in an exclusive process for the potential sale of the news & entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN. Maria and I continue to discuss the ongoing evolution of WMX, and how best to further improve our services to artists and labels, and she’ll update the team in the coming weeks.
As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices. We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities:
Grow the engagement with Music
Discovering and developing artists and songwriters is at the heart of everything we do. We’ll turbocharge our efforts and investments, with additional focus on high growth geographies and vibrant genres, as well as using our data and insights to help original talents cut through the increasing noise, and taking a holistic global approach to maximizing the potential of their catalogs.
Increase the value of Music
This is one of our industry’s largest and most complex opportunities and one that we’re working on diligently, whether it’s new DSP deal structures or building superfan experiences to help artists connect directly with their most passionate followers.
Evolve how we work together
In order to grow at an accelerated pace, we need to structure our organization so that we can grow efficiently and continue to invest more into music at the same time. That requires being intentional about where centralized shared functions make sense, versus where they are best fully dedicated. This will empower subject matter experts, while scaling our resources. We already made moves in this direction by centralizing our technology, finance and business development teams last year.
Above all, we’re positioning ourselves to be first, to be different, and to be exceptional. I – and the entire leadership team – will be keeping you updated as we make progress. In May, we’ll hold our next All Hands meeting, which we’ll devote to our best new music, as well as our most promising projects.
Thank you for your understanding, passion, and determination. We’re in an amazing industry, we’re partnered with many extraordinary artists and songwriters, and now is the time for us to pioneer the future.
Robert
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Source: handout / Warner Music Group
On Friday, (Feb. 2) Megan Thee Stallion and Warner Music Group announced that the Houston rap star entered a historic deal that will allow her to maintain her independence as a musician while also having access to the music company’s robust global services, ranging from radio promotion to worldwide marketing.
“This is the beginning of an exciting new chapter of my life and career,” Megan said, according to a press release. “I’m really focused on building an empire and growing as an entrepreneur, so I’m proud to take this next step in my journey and work with Max Lousada and the entire Warner Music Group team in this new capacity. I know we’re going to create history together.”
In the agreement, Meg will release music through Hot Girl Productions – her independent music and entertainment entity – and simultaneously work with Warner Music and its international affiliates.
She will also retain full creative control of her music releases along with the option to bring artists who are signed to her imprint into the WMG ecosystem.
“Meg is not just a superstar,” WMG Recorded Music CEO Max Lousada said in the release. “She’s an artistic force and a mogul in the making – authentic and unapologetic in defining her own unique place in the cultural landscape. So many relate to her remarkable story and have witnessed her come into her power on her own terms. At Warner, we’re creating an environment where original talents can explore both their creativity and entrepreneurialism, while building long-term careers. Following on her success with 300, we’re excited to continue our journey with Meg through this dynamic new partnership, with our global teams, infrastructure, and expertise supporting her every step of the way.”
The announcement was also celebrated by Meg’s management company, Roc Nation. The company’s CEO Desiree Perez wrote, “Megan continues to be an absolute trailblazer,” she added. “This new chapter with Warner Music Group will shift the landscape in the music industry and empower other independent artists to follow in her footsteps and claim their power. It’s also a testament to Max’s ability to reimagine the relationships that major music companies can engage in with independent artists.”
The deal comes after the superstar was recently appointed a brand ambassador for Planet Fitness starring in an ad and releasing a line of merch.
The superstar rapper is also at the top of the charts with her single “HISS,” which has already reached No. 1 on Apple Music’s Global charts, Spotify’s U.S. charts, iTunes and YouTube Trending within the past week of its release.
Megan stopped by Good Morning America last week and announced that she will soon release a new album and that she has a Hot Girl Summer tour on the way.
“Oh, we’re having the tour this year. The Hot Girl Sumer tour is going to be 2024, summertime,” the Houston rapper said during her GMA appearance. “I feel like I’ve never been able to be outside doing my own thing during the summer, since like 2019. So this is going to be the first time that I drop an album on time for the summer. I do want to give the hotties the Megan Thee Stallion experience.”
In Warner Music Group‘s sprawling 2023 ESG report, released Tuesday (Jan. 30), the label outlined plans and goals for its workforce, artists and environmental impact.
“We are determined to transform our business and spur industry change to mitigate the effects of the climate crisis,” the report states in an expansive section on sustainability practices. “This includes measuring and understanding WMG’s environmental footprint, setting science-based targets to reduce emissions…and leveraging our scale, experience and partnerships to foster cross-industry cooperation to minimize the environmental impacts of making and distributing music.”
For the company, these changes start with the company’s brick-and-mortar spaces, with the goal that “WMG will source 100% renewable energy for our operations” by 2030.
The plan is to first implement this initiative in WMG’s global offices and workspaces before rolling it out to WMG-owned and operated facilities. The company also plans to decarbonize its workplaces through 100% renewable energy-based power by 2030.
The report cites WMG joining with Sony Music Entertainment and Universal Music Group in 2023 to establish the Music Industry Climate Collective. The first initiative of this working group has been supporting the development and implementation of sector-specific guidelines for calculating Scope 3 GHG emissions within the recorded music industry. “Scope 3” refers to indirect emissions that occur in the value chain, such as those from product manufacturing, distribution and licensing.
The company also noted a previously announced partnership with MIT, Live Nation, Coldplay and Hope Solutions to understand and mitigate the environmental impact of the live events.
The company cites a goal of increasing public transportation utilization by 20% at Warner Music live events. This effort has already resulted in a partnership between Warner Music Finland Live and Helsinki City Public Transportation, which has provided fans with free public transportation included in their concert tickets.
With its environmental impact data independently reviewed and assured by a third-party auditor for the first time in 2023, WMG reports that in the past year, it has made “significant strides” in its Scope 1 and 2 data collection, analysis and methodology. (Scope 1 and 2 refers to emissions that are owned or controlled by the company and indirect emissions that result from activities of the company.)
“Despite our return to office,” the report says, its efforts “have led to an overall decrease in our reported Scope 1 and 2 greenhouse gas emissions for 2023.”
The report also cites successful employee-driven initiatives, including its U.K. Wrights Lane office eliminating single-use plastic and switching to reusable cutlery and serveware. The WMG office in France has eliminated paper cups and improved waste management to increase recycling.
Regarding sustainable products and merchandise, the company outlines “an industry-first method” of creating vinyl albums using PVC alternatives. Says the report: “We are delivering these changes in partnership with our artists and songwriters, many of whom are increasingly looking for ways to share music with their fans in a sustainable way.”
Read the full report here.
As the music industry prepares to gather next week in Los Angeles for discussions on how to address climate change within the sector, a new initiative to better understand the scope of the challenge is underway.
On Monday (Jan. 29), MIT’s Environmental Solutions Initiative announced that it’s launching a comprehensive study of the live music industry’s carbon footprint. Co-funded and supported by Warner Music Group, Live Nation and Coldplay, the report will suggest solutions to reduce the environmental impact of live music events across all venue sizes, from, a statement says, “pubs and clubs to stadiums.”
Focused on the U.S. and U.K. markets, the partnership will begin with an initial research phase, with the resulting Assessment Report of Live Music and Climate Change expected to be complete by this July.
The report aims to provide a comprehensive assessment of the relationship between live music and climate change, to identify key areas where the industry and concertgoers can make tangible improvements to reduce emissions, to foster positive outcomes and to provide a detailed analysis of the latest developments in green technology and sustainable practices.
“I’m delighted that we will be working with our partners to co-create recommendations for a sustainable future in music,” says Professor John E. Fernandez, director of the ESI at MIT. “As well as jointly funding the research, I applaud the spirit of openness and collaboration that will allow us to identify specific challenges in areas such as live event production, freight and audience travel, and recommend solutions that can be implemented across the entire industry to address climate change.”
Coldplay has also committed to manufacturing all physical records for their forthcoming 2024 album from recycled plastic bottles, which a statement claims is the first initiative of its kind.
Coldplay is a longtime sustainability leader, with the band saying last June that its Music Of The Spheres tour has so far produced 47% fewer CO2e emissions than its previous tour and that it’s planted five million trees to date.
With fan travel being one of the biggest carbon emissions drivers in the music industry, in 2022 the band partnered with Live Nation and major public transportation providers to offer fans free or discounted rides to foster more sustainable travel. A study found that this initiative fostered a 59% average increase in public transport ridership on show days across four U.S. cities.
Warner Music Group and Red Light Management have entered into a strategic partnership designed to help Red Light artists better target the world’s second-biggest music market, Japan.
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Under the pact, Warner Music Japan’s international marketing and ADA divisions will work with Red Light to build a marketing and label channel for Red Light artists. They will also work to foster collaboration between Red Light artists and domestic performers in Japan.
The partnership kicks off with the promotion of Ghostly Kisses, the musical project of French-Canadian singer-songwriter Margaux Sauvé, who is signed to British label Akira Records. She performed for the first time in Tokyo in December ahead of her new album release set for early this year.
Red Light Management’s roster of artists, writers and producers includes Dave Matthews Band, Punctual, Enrique Iglesias, Brittany Howard, Lady A, Lionel Richie, Interpol, ODESZA, Phish, The Strokes, Sabrina Carpenter, Chris Stapleton, Danny L Harle and Lewis Thompson.
James Sandom, managing partner at Red Light Management, said in a statement, “We’re super excited to partner with Warner Music on this initiative to help our artists with a dynamic new route into Japan. The Japanese market has unique characteristics, a landscape requiring bespoke attention and knowledge of the local music and entertainment sector. Bringing this knowledge together with our artists will help them build fan communities in this special market, with the aim of enabling a new generation of artists to find success in Japan.”
Kaz Shimada, COO of Warner Music Japan, added, “In recent years we have worked hard to help international artists connect with local fans as we transitioned from physical to digital. This exciting new partnership is another significant step forward, as we combine our experience promoting some of the biggest global stars in Japan with Red Light Management’s super-talented managers and amazing roster of artists.”
Now that Warner Music Group chairman/CEO Robert Kyncl has had a full year at the helm of the major label, he has released a New Year’s note to staff, obtained by Billboard, outlining a plan to kick into gear and set the company up for the next 10 years of changes in the music business.
In the note, Kyncl says he’s referring to the year 2024 as “The Year of the Next 10 — the year when we move at velocity to set ourselves up for a winning decade in the new world.”
“As we start the new year, one thing I’d like us all to remember is that our world has fundamentally changed… the music business is in a very different place than it was 10 years ago,” Kyncl writes. “Now, we’re in a position of strength. That is the time to get ahead for the future.”
He then emphasizes three key areas that he sees as crucial for the next year: growing the engagement with music; increasing the value of music; and evolving how the team works together.
On the first point, Kyncl breaks it down into four main focus points. The first, he writes, is about focusing A&R more on capturing opportunity, including geographically (“based on where artists and songwriters come from and where their streams are going”) and looking forward, as with identifying genres that will grow in the future. The second, in marketing, he emphasizes the partnership between marketing, A&R, tech and business intelligence to better focus efforts and better use the data available. The third, in catalog, emphasizes the ability to market and promote WMG’s extensive catalog on the same lines as it does its frontline music, particularly in digital optimization, given that catalog is driving some 70% of consumption in the current market. And finally, he emphasizes distribution and administration, in beefing up both the services available to the “middle class of artists” and in the major’s publishing admin business, which he wants to scale up further.
The second point, focusing on value, is about solving in 2024 for some of the conversations that rose up and started to dominate in 2023: namely, the value of artists and music on streaming platforms, as well as the issues surrounding the dilution of the royalty pool from the likes of functional music and white-noise tracks. Kyncl has previously spoken about the importance of streaming services raising prices, which many did in the past year, which he stresses as well. And finally, he stresses the need to further develop artist-to-superfan relationships, which he calls “relatively untapped and under-monetized,” though notes that WMG has initiatives in the works in many of these areas already.
The final point, on working together, is about reorienting how the WMG team works, including through leaning into expertise, transparency, flexibility, collaboration across departments and within teams, relying on metrics and not being afraid to lead rather than follow the industry.
Kyncl also takes time to point out some of WMG’s successes in the past year, including big years by the likes of Zach Bryan, Jack Harlow and Gunna; returns from Dua Lipa, David Guetta and Ed Sheeran; and catalog victories for the music of David Bowie, Madonna and Talking Heads, among others, while looking forward to new music from Gabby Barrett, Maria Becerra, Green Day and more.
Looking at the past several decades in 10-year chunks is a useful way of catching snapshots of how markedly things have changed. In 2004, the CD boom had decidedly stalled, as piracy began to take chunks out of the record industry and the business was in the midst of its protracted struggle with piracy and the digital revolution. By 2014, the industry had effectively bottomed out, with recorded revenues hitting their nadir as streaming had been introduced but had yet to catch on as a viable, much less dominant, format for the business. Now, in 2024, with streaming far and away the biggest source of revenue for a booming business, the revenue model is being hotly scrutinized, as new technologies and increasing fraud and volume threaten to overwhelm the now-established status quo.
In that respect, Kyncl sees this year as a pivotal one to answer several of these big questions, and set WMG up for the next decade of challenges and opportunities in the business. “We’re going to fuel the growth of this company using the same resourcefulness and determination with which we develop our artists and songwriters,” he writes. “Because ultimately that’s what will serve them best.”
12/29/2023
The year saw K-pop companies making mega moves on a global scale, while the catalog market remained hot.
12/29/2023
Warner Music Group has partnered with British health tech start-up MediMusic to trial “music as medicine” to help relieve pain, anxiety and stress. MediMusic will conduct research testing in several closed randomized controlled trials in both the United States and the United Kingdom that will deliver playlists from the Warner Music catalog to patients and sample groups to observe how they respond to the music in real-time.
“MediMusic’s proprietary algorithms extract the relevant features from the digital DNA of a piece of music, resulting in a fingerprint for healthcare use,” according to a press release, with the help of artificial intelligence, machine learning and patient data. The company then automatically creates personalized 20-minute playlists and plays the music through a streaming device called the MediBeat and a pair of headphones. Patients wear a heart rate monitor on their wrists to monitor the physiological effect of a piece of music.
The release states that initial trials conducted by MediMusic and the UK National Health Service using the MediMusic technology reduced the heart rate of anxious dementia patients by 25%.
Secretly Distribution announced new global multi-year deals with Danger Mouse‘s 30th Century Records, the catalog of singer-songwriter David Gray and Madlib‘s Madlib Invazion. Secretly will support all of 30th Century Records’ new music and back catalog, including vinyl reissues. For the Gray catalog, the company will work with Bella Figura Music to provide the catalog with global digital support and vinyl reissues. And for Madlib Invazion, Secretly will handle distribution for Madlib and the rest of the label, including new music from Madlib expected next year.
Additionally, Secretly announced multi-year contract renewals with three longtime label partners: Captured Tracks, Rhymesayers Entertainment and Run for Cover.
SoundCloud announced partnerships with dance label Helix Records and hip-hop label Payday Records to offer expanded global artist services for emerging electronic and hip-hop artists identified by SoundCloud for a potential signing with one of the labels.
ASM Global and Voltus, a distributed energy resource platform and virtual power plant operator, struck a partnership through which ASM Global-managed venues will be paid for energy reduction efforts across all venues located in wholesale and regulated power markets in the United States. Earlier this year, the ASM Global Acts Foundation announced a plan to convert the company’s venue portfolio into the world’s most sustainable, which includes reducing energy consumption by 25% by 2030 from this year’s baseline and becoming carbon neutral by 2050.
Colorado Springs, Colo.-based live entertainment company Notes Live entered into a non-binding letter of intent for a business combination transaction with wine producer Fresh Vine Wine, a company listed on the NYSE American stock exchange. The two parties expect to negotiate and enter into a definitive agreement before the end of January; Notes Live is planning to seek shareholder approval for the transaction at a meeting scheduled for Jan. 31.
The final closing is expected in the second quarter of 2024, subject to closing conditions including approvals by NYSE American of the continued listing of the combined company’s common stock after the closing. The combined company’s common stock would trade on the NYSE American under the ticket “VENU” following the closing.
Notes Live currently operates two entertainment campsites in Colorado Springs and Gainesville, Ga. and is also developing luxury amphitheaters in Colorado Springs; Broken Arrow and Oklahoma City, Okla.; and northern Texas. According to a press release, “The parties expect that the owners of Notes Live would own a substantial majority of the issued and outstanding shares of Fresh Vine common stock on a post-transaction basis, which may be in excess of 90%.”
The Feldman Agency is teaming with Tennis Canada to launch The Bowl at Sobeys Stadium, a new open-air concert venue in Toronto. Located on the York University campus, the Bowl will accommodate up to 9,000 guests and feature private lounges and an onsite restaurant.
Lucas Thomashow, former senior vp at Avex, announced SANA, a new label that will be a joint venture with recently launched artist and label services company Santa Anna (led by Todd Moscowitz and Lee L’Heureux), Sony Music and independent label LISTEN TO THE KIDS (founded by Conor Ambrose). SANA’s partnership with Santa Anna will encompass distribution, marketing and promotion, while the A&R and marketing teams at LISTEN TO THE KIDS (which partnered with Santa Anna in January 2023) will work with SANA on the strategy and development of the label. SANA will be based in LISTEN TO THE KIDS’ studio and offices in L.A.
Production company Jesse Collins Entertainment has signed with CAA for representation. The company, which boasts three divisions — specials, unscripted and scripted — is next slated to produce the 75th annual Emmy Awards. The company’s credits include the American Music Awards, BET Awards, Becoming a Popstar, Cardi Tries, American Soul and The New Edition Story. Founder/CEO Jesse Collins and president Dionne Harmon executive produce all Jesse Collins Entertainment programming; the company has a multi-year, non-exclusive overall deal with Paramount Global.
Lyric licensing and data solutions company LyricFind and music metadata leader Music Story extended and expanded their multi-year relationship. The broader partnership allows Music Story to help further LyricFind’s commercial reach by selling the company’s services to customers in the United States and globally. Prospective customers can also tap Music Story’s U.S. and international metadata services.
“By making Music Story an extension of LyricFind’s services, we’re taking a major step forward in unlocking the power of metadata to help more people discover and enjoy the music they love with lyrics while ensuring that songwriters and copyright holders are fairly compensated for their incredible work,” said LyricFind founder/CEO Darryl Ballantyne in a statement.
B2B streaming media service Tuned Global partnered with the new “artist-centric” streaming platform Sona to help launch Sona’s music service and marketplace, sona.stream. Tuned Global will provide content delivery, tools and reporting services for Sona under the deal, including its content delivery and APIs that will allow fans to create playlists and launch radio stations based on their favorite artists (beginning in 2024).
Co-founded by artist/producer TOKiMONSTA and Laura Jaramillo, Sona allows fans to stream music for free without subscriptions or ads but also to buy SONAs, or digital twins of specific songs that share future streaming rewards with their owners. Artists can choose which songs to auction as SONAs, while fans can purchase songs as SONAs to earn 70% of that song’s future streaming rewards on the Sona platform.
Beats marketplace BeatStars has partnered with software developer Resonant Cavity, creators of the popular mobile studio and vocal effects app Voloco, to integrate with Voloco beginning in January. “Our collaboration with BeatStars will bring the best beat catalog into the most powerful mobile recording studio,” said Patrick Flanagan, CEO/founder of Resonant Cavity, in a statement. “As artists experience studio-quality vocals from Voloco over top-tier beats from BeatStars producers, they’re going to be inspired to create something exceptional.”
The Warner Music Group has signed on to Deezer’s new royalty payment structure in France, which was developed in partnership with Universal Music Group and announced in September, the president of the major label’s French operations confirmed today (Nov. 13). The move, which was first confirmed in a story with French outlet Les Echos, has been in place since Oct. 1, and only covers streams in France, where Deezer is based.
In September, Deezer and UMG announced their new model, which they referred to as an “artist-centric” royalty model aimed at combatting fraud, reducing the royalty pool for so-called “non-artist noise” like white noise and nature sounds, and boosting payouts for what the companies referred to as “professional artists,” or artists who were accumulating 1,000 streams per month from 500 unique listeners. The model replaces the existing pro-rata model, in which rights holders were paid by share of streams, regardless of their stature or content, which is still in place globally.
“We are delighted to partner with Deezer on this artist-centric model which rewards engaging music and demonetizes non-artist noise,” Warner Music France president Alain Veille told the outlet. “Our new deal will benefit creative talent at all stages of their careers and support our ability to invest in the next generation.”
In opting in to Deezer’s new structure, WMG joins UMG and a handful of small indies, while the third major, Sony Music, has so far not signed on. The move comes amid a year’s worth of conversation in the music industry about how to tweak the streaming royalty structure as the amount of tracks being uploaded each day to major services surpasses 100,000, and fraud on services is becoming an increasingly big topic. Universal also announced a royalty review with SoundCloud and TIDAL, while Spotify released its own tweaked model, which has far lower thresholds for artists than Deezer’s and is more narrowly aimed at fraud, rather than at determining the level of streams that constitutes an artist’s professional status.
When Deezer and UMG first announced the new model, it was met with pushback from several corners of the music business, particularly the indie sector, which was concerned about those seemingly-arbitrary levels to qualify as a “professional” and about the one-label study that led to its adoption. And while there is broad consensus in the industry that the model needs to change — including public statements from UMG chairman/CEO Lucian Grainge and WMG CEO Robert Kyncl — there is not universal agreement in how to do so, and there is a possibility that each digital service provider could adopt its own model moving forward.
In initially announcing the model in September, Deezer CEO Jeronimo Folgueira told Billboard that he expected more rights holders than UMG to sign on, and planned on rolling out the new structure globally in the coming year. For now, the model is limited to France.
