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In a New Year letter to staff in January, Warner Music Group CEO Robert Kyncl said the company needed to offer better services to the “middle class of artists,” an area being feverishly pursued by his major-label competitors, as well as a handful of independent distribution companies.
This week, WMG revealed it is interested in acquiring French company Believe, which owns a large label services business, digital distributor TuneCore, publishing administration service Sentric and a stable of record labels including Naïve, Nuclear Blast and Groove Attack. WMG said it is willing to pay “at least” 17 euros ($18.60) per share, a premium to the 15 euros ($16.41) per share offered by a consortium led by Believe CEO Denis Ladegaillerie and investment funds EQT and TCV. WMG’s bid values Believe at roughly 1.65 billion euros ($1.8 billion).
WMG’s interest in Believe doesn’t come as a surprise. The middle class of artists Kyncl referenced wants alternatives to traditional recording and publishing deals — and WMG needs the tools to give those artists what they want.
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While WMG can likely bring greater value to Believe’s assets as well, a Believe deal “solves a real stack problem for [WMG],” says Matt Pincus, founder and CEO of MUSIC, a venture with investment bank Liontree. A full “stack” — a tech term that refers to all the technologies and skills required for a project — would allow WMG to serve a more complete range of artists. Presently, WMG’s product offering is missing a distributor for self-published artists, says Pincus, that provides a level of artist services between a do-it-yourself distribution deal and a record label contract. That would augment WMG’s ADA, which distributes indie labels, and create a funnel to bring rising artists into WMG’s system.
Kyncl need only look at how his competitors are serving middle-class artists. Following the rise of iTunes, some independent distributors were eventually acquired by other major labels that wanted to distribute music on a greater scale. Sony Music has The Orchard, a digital distributor acquired in 2015, and AWAL, an artist-development company acquired from Kobalt in 2022. Universal Music Group acquired digital distributor Ingrooves in 2019 and folded it into its artist- and label-services division, Virgin Music Group in 2022. TuneCore, founded in 2006 to allow artists to access a new era of digital stores and services, was acquired by Believe in 2015.
The majors’ emphasis on label services is an acknowledgement that today’s marketplace is a mix of traditional artist deals, do-it-yourself independent artists and everything in-between — distribution deals, joint ventures, licensing deals, profit-sharing arrangements and releases from independent artists backed by a major’s label services provider. Budding superstars often want independence but need the majors’ global infrastructure and expertise. “What really makes a difference in this world is to do what [CEO] Brad [Navin] and the Orchard did with the Bad Bunny record [Un Verano Sin Ti],” says Pincus. “They really helped break that record worldwide.”
Believe would also provide WMG a publishing solution for those same independent artists. “When you consider that Believe also acquired Sentric publishing, this brings together master and publishing for many of these indie artists,” says Vickie Nauman of advisory firm CrossBorderWorks. “That also opens up opportunities for new synch licensing models that otherwise fragmented rights do not allow.”
Geography is another aspect of Believe’s business that could be attractive to WMG. Although the majority of Believe’s revenue comes from Europe, it has employees in more than 50 countries and has a presence in fast-growing markets such as Indian — where it invested in two record labels, Venus and Think Music — and Indonesia. Approximately 27% of Believe’s total revenue in the first nine months of 2023 came from Asia-Pacific and Africa, a 17.4% increase from the prior-year period.
Developing markets have great potential for a couple reasons, Kyncl explained Wednesday at the Morgan Stanley Technology, Media and Telecom 2024 conference. In the Middle East, for example, markets that have young populations, an underdeveloped subscription market and lack collection societies “will see quite a lot of value appreciation.” Developing markets are increasingly becoming music exporters, and Kyncl believes that provides WMG with an arbitrage opportunity. “Let’s say if you have Indonesian content that’s traveling to America,” he said. “It’s a smart place to put money because it’s [going] from a low ARPU country to high ARPU streams [in a developed market].”
An acquisition is hardly a done deal, though. To date, WMG has only expressed an interest in Believe. WMG is playing catch-up, too: The consortium attempting to take Believe private has lined up blocks representing nearly 72% of share capital — enough to “prevent a competing bidder from acquiring control,” according to Believe’s ad-hoc committee — although WMG’s higher bid could change that. An acquisition would require regulatory approval, too, and there is likely to be pushback from music companies and trade associations such as the UK-based Association of Independent Music against further industry consolidation.
But, setting aside the potential roadblocks, WMG would be a good fit for Believe. Sony Music and UMG are both larger than WMG, already have Believe-like companies and would thus face more regulatory scrutiny. The 1.65 billion-euros ($1.8 billion) price tag is in what astronomers call the “Goldilocks zone” for habitable planets’ distance to their suns: It’s too expensive for many independent companies but affordable enough for WMG.
In January 1999, Universal Music Group laid off hundreds of employees during a wave of consolidation with PolyGram. “The biggest staff cuts were at Geffen and A&M, two Los Angeles-based labels that have been folded into Interscope Records … and at Island Records, which has been merged with Mercury,” Billboard reported at the time, predicting that the cuts would affect label rosters, with “baby bands … expected to suffer the most casualties in the shake-ups.” In an interview with The New York Times, one artist manager described the impact of the merger on his band as if “a car [got] shut off in midgear.”
Roughly 25 years later, UMG is expected to cut hundreds of jobs to create “efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market,” according to a January statement from the company. Warner Music Group has announced layoffs of more than 800 people in two rounds over the last 12 months; on Monday, WMG label Atlantic Records announced additional cuts of about two dozen employees, primarily in the radio and video departments. (Sony Music is also expected to trim staff, according to sources; a rep for Sony declined to comment.)
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These cuts herald a leaner approach to the major-label business, and some talent and their representatives are worried about how this impacts their future.
Artists “are going to be upset,” says Mike Biggane, who was head of curation for Spotify, then worked at UMG as global executive vp of music strategy and tactics until last year. “The teams that artists signed up for and have been going to battle with will all be gone. That is going to impact the managers and the remaining label staff, who are already spread too thin.”
“If you’re not a multi-platinum artist, good luck,” says Allen Kovac, a longtime manager who had several acts in the UMG system during the 1999 consolidation.
A rep for UMG declined to comment. Speaking to financial analysts on Wednesday, UMG CEO Lucian Grainge said that “when it comes to supporting their rosters, [labels] will have access to our highest performing internal teams and resources to bring the new artists to even higher levels of success.”
And some executives were more sanguine about the impact of the upcoming staff cuts. Chris Anokute manages Taela, who was signed by Michelle Jubelirer before she recently left Capitol Music Group. “I’m very grateful to Michelle for signing her,” Anokute says. “Now there’s new management, and I’m excited to work with the new team to keep on developing her. I’m not worried for one second.”
Major labels have been consolidating internally for more than two decades. In 2004, Atlantic Records and Elektra Records merged as part of a Warner Music Group shake-up that included 1,000 layoffs. “Warner began cutting money-losing and under-performing artists from its merged Atlantic-Elektra label’s roster, and is preparing to let go as many as half of the label’s 170 acts,” The Washington Post reported.
Later the same year, BMG and Sony Music merged. “In each market tough decisions will have to be made about the senior executive lineup, overall staffing and artist rosters,” Billboard wrote.
While layoffs were typically followed by roster trimming in the past, history can serve only as a limited guide when assessing the latest round of cuts. “The environment today seems quite different to that of the late 1970s and early 1980s — the first time the industry experienced serious contraction — or the early 2000s,” says Adam White, a former Billboard editor-in-chief who later served as UMG vp of international communications. “During both of those time periods, industry sales slumped significantly and staff cutbacks were widespread. Isn’t that in contrast to the current environment, with revenue admittedly not growing at previous, double-digit rates — but still growing?”
Nonetheless, with leaner staffs, “you either need to spread your remaining staff more thinly or serve a smaller roster,” says Peter Sinclair, who worked at UMG for five years before founding beatBread, an artist-funding platform, in 2020.
Some major-label executives contend the staffing changes their companies are making will let them offer more resources to artists, not less. WMG CEO Robert Kyncl, for example, told staff that the cost savings from recent cuts would free up money that can be put towards “increasing funding behind artists and songwriters,” while Atlantic Music Group chairman/CEO Julie Greenwald said the company would be “bringing on new and additional skill sets in social media [and] content creation” to “help artists tell their stories.” In a memo to staff on Wednesday (Feb. 28), Grainge wrote that “our long-term growth strategy, including this organizational redesign, represents a new paradigm for artist support.”
However, many acts believe major-label staffs are already stretched perilously thin, and that layoffs will only exacerbate artists’ feelings of being underserved. “Way too many of my clients complain about what the labels aren’t doing for them,” says Todd Rubenstein, an entertainment attorney. “Even if there is a whole plan they come in with, it’s still not getting serviced.”
“I’m not anti-label; I think every single artist we have is on a major label,” adds Crush Management founder Jonathan Daniel. But “the reason I set up my company the way I did” — Crush has its own marketing and radio promotion staff — “is because labels always have too many artists for how many people work there.”
Labels are already more willing to trim their rosters than they were in the past, and A&R executives say this may have intensified independent of the recent layoff announcements, after a period of excessive signing driven by pressure to maintain market share and an abundance of viral hits on social media. “Would [layoffs] speed up the process of trimming the roster?” asks entertainment attorney Michael Sukin. “Sure, but labels don’t need an excuse.”
That said, when employees are laid off or leave to take another job, some artists will lose their internal advocates. Executives believe it’s likely that there are acts in the UMG system who won’t have their options picked up after the layoffs because no one inside the buildings will fight to keep them.
“Any artist that’s more singles-based is more of a risk on your balance sheet,” says one A&R executive-turned-manager. “They want artists that have sticky fan bases that will be there and support them when they don’t have a hit.”
This all sounds nerve wracking for artists, who are, after all, the lifeblood of record companies. In reality, though, an artist who was a label’s 40th most important act may not have been getting a ton of help anyway — as a UMG executive told The New York Times around the time of the Polygram merger, “for the [artists] we let go, they’ve probably already been dragged over the coals by a record label that can’t do the best job for them.” Nick Stern, another longtime artist manager, is fond of saying “there’s nothing better than being a top five priority at a major label, and nothing worse than being 20 to 50.”
And while artists who got dropped by a major label in 1999 didn’t have many ways to get their music heard around the world, that’s not the case in today’s digital industry. Song creation, distribution and marketing are now all far more affordable. “As the majors’ gatekeeping role shrinks, artists have more options, more leverage, more control and more creative freedom,” Sinclair says. “If you’re an artist and you get dropped by the majors, I’d recommend you take it for what it is: an opportunity.”
When Biggane left UMG last year, he started Big Effect, a company developing technology designed for smaller artist teams to release products and manage catalog effectively. He predicts an “exodus of talent on both sides — people working in the industry trying to provide services and artists looking for services.”
“They’re all going to come out in the independent market,” Biggane says, “and try to find each other.”
Additional reporting by Kristin Robinson
The buzzword from music company CEOs so far in 2024? Superfans.
Already this year, the heads of Warner Music Group, Universal Music Group, Spotify and Live Nation have announced an intention to lean into better serving superfans of artists, with new initiatives and already one investment deal on the table. And today (Feb. 27), at the Web Summit conference in Doha, Qatar, WMG CEO Robert Kyncl announced that Warner would be building a new platform aimed at better connecting its artists with their biggest fans.
“Something we’re working on at Warner are these direct to superfan experiences,” Kyncl said, speaking on stage alongside newly-signed Warner artist Nora Fatehi. “I’ve assembled a team of incredible technology talent who are working on an app where artists can connect directly with their superfans, who are generally the people that consume the most and spend the most… and we’re focused on making sure that artists get data on these superfans.”
Kyncl hinted at the new platform, which is still early in development, in his New Year’s note to staff in January, where he said, “We need to develop our direct artist-superfan products and experiences,” adding that some things were already in the works. “Both artists and superfans want deeper relationships, and it’s an area that’s relatively untapped and under-monetized,” he said.
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The details of Warner’s app are still vague, though a source said more information should be coming in the next few weeks, and Kyncl mentioned something rolling out later this year. But already there are apps and platforms, such as WeVerse and Stationhead, that have done significant work in capturing the superfan community, connecting artists — including some of Warner’s biggest artists — directly with their biggest fans.
Other companies have hinted at the beginnings of their own strategies. Last week, Universal announced an investment in Complex and NTWRK, following the latter’s acquisition of the former from Buzzfeed, aimed at connecting artists with an online shopping option for fans; that came a month after UMG chairman/CEO Lucian Grainge’s own New Year’s memo to staff, in which he said, “The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products,” pointing to discussions with platform partners and in-house partnerships. In January, Spotify CEO Daniel Ek hinted at the creation of “superfan clubs” when mentioning new products. And last week, Live Nation execs talked about revamping the superfan experience for concerts, in a bet that it will drive more revenue.
While Kyncl didn’t specify what Warner has in the works, or how it will connect artists to fans, he underlined the need for the app to be available across platforms. “Artists want to work with every single platform… they don’t want to optimize just for one platform over another,” he said. “So a solution like this for superfans has to be a cross-platform solution. We, as a record label, are in a perfect position to do that because we work with all of the platforms. Historically, we haven’t had the technology talent to do this, but now we do… it’s an exciting piece of work that will launch later this year.”
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Warner Music Group announced that they were going to commence layoffs within the next few weeks amid a pivot away from digital media.
On Wednesday (February 7), Warner Music CEO Robert Kyncl sent out a memo to the staff informing them that the company was going to lay off 10% of its staff, or 600 people in the weeks ahead. The announcement comes a day before the release of the company’s earnings report on Thursday (February 8). The digital media division will be the hardest hit, with Uproxx, HipHopDX, IMGN, and Interval Presents as Warner Music seeks to “double down on core business.”
“These are dynamic platforms, but they operate outside our core responsibilities to our roster,” Kyncl said in the memo. It is believed that HipHopDX and Uproxx will be sold off to potential buyers, while the podcast brand Interval Presents and social media publisher IMGN will be wound down. “This is a pivotal moment in the evolution of this great company,” Kyncl continued. “We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024.” He wrote that in knowing that the news is “unsettling,” that “Warner Music would be “moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.”
The memo also contained numbers from the earnings report showing that Warner Music feels they’re making the decisions from a stronger position. “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,” Knycl wrote, pointing to an 11% revenue growth for the final quarter of 2023. The other preliminary data released showed a rise in net income of $193 million versus $124 million in the quarter at that time last year.
The news of the layoffs does come at an uncertain time for the music and media industry which has suffered some similar stunning cuts. Earlier this month, Condé Nast announced that Pitchfork would be folded into GQ Magazine, and Sports Illustrated announced recently that they had laid off most of its staff. The Sports Illustrated Union and the NewsGuild of New York are currently suing the sports periodical’s parent company, The Arena Group.
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.”