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Warner Music Group executive vp/CFO Eric Levin reiterated the label’s call for streaming services to raise their prices while speaking at a conference hosted by JP Morgan Chase & Co on Monday (May 22).
Levin, who worked at HBO between 1988 and 2002, told the group of investors and Wall Street analysts that, unlike streaming services, the cable network almost annually raised prices during that period because the company knew customers wanted its content enough to pay a premium.
“I think and I am hopeful now that much of the [streaming] industry has done a round of rate increases successfully…that they start to understand that the industry can bear it,” Levin said.
Levin’s comments echo WMG CEO Robert Kyncl‘s previous call to streaming company hold-outs to raise prices, delivered during a wide-ranging presentation in March that touched on WMG’s growth strategy if streaming growth slows as well as its light release schedule in the first two quarters.
An increase in music streaming revenue, the main driver behind WMG and other major music companies’ double-digit growth in recent years, is expected to decline from 10% growth in 2024 to 3% growth in 2029, according to a recent presentation by MIDiA Research. That projection, which is far gloomier than Goldman’s forecast for a 12% compound annual growth rate for streaming revenue until 2030, prompted several questions to Levin about WMG’s streaming revenue expectations and how it may grow even if the streaming engine slows.
“We still have a lot of conviction that streaming has a lot of growth,” Levin said while noting that growth may come from a series of drivers.
“When we went public three-ish years ago, our growth story really revolved around subscription streaming,” he said. “Now … it includes ad-supported streaming [and] emerging [sources] of streaming, social, fitness, gaming, etc. So the facets of growth have really diversified.”
The industry has seen steady growth in subscription streaming since roughly 2015, and growth in that area remains present in all economic forecasts, Levin added.
Other revenue drivers like ad-supported streaming, he continued, are more impacted by “cyclicality based on slowdowns when the economy slows and rapid recovery when the economy is solid.”
Emerging sources of streaming revenue, such as from social media and short-form video apps, have significant growth potential, Levin said, because “you have potential for multiple products per person in a home — people have multiple social media accounts in one home.”
This month, WMG reported its second straight quarter of basically flat recorded music revenue, driven by a slower first half of the year for music releases. Recorded music streaming revenue declined nearly half a percent from the prior year due to the light release schedule.
Pressed to provide greater detail around why the company is experiencing a modest release slate this year, Levin said the May 5 release of Ed Sheeran‘s – (pronounced Subtract) is expected to be the first in a slate of upcoming releases by prominent artists — and indeed, the company is already showing signs of a second-half rebound. Still, he acknowledged WMG has lost ground to its competitors.
“We lost a little bit of momentum, but we fully expect to get it back,” Levin said.
Warner Music Group’s share price fell nearly 10% on Tuesday (May 9) following the release of the company’s second quarter earnings report, which showed that revenue from the recorded music division was effectively flat over last year ($1.143 billion vs. $1.147 billion in the year-ago quarter).
On Tuesday, Warner’s stock fell from $28.50 at the start of the day to $25.76 at the market’s close — a 9.58% drop.
This marks the second straight quarter of disappointing results in recorded music for Warner, the world’s third-largest label. Last quarter, revenue in the division fell 10.6%, or 5.6% in constant currency, on lower digital, physical and artist services and expanded rights revenue.
In the current quarter, streaming revenue was down 0.4% (or, in constant currency 2.2% higher) on fewer releases and a slowdown in ad-supported revenue due to macroeconomic uncertainty. By contrast, music publishing revenue grew 12% to $257 million, up from $230 million a year ago.
“While our publishing was best in class, we underperformed in recorded music,” said CEO Robert Kyncl on an earnings call Tuesday.
In attempts to bolster confidence, WMG executives on the call stressed that the company is already seeing improvement with the late-April releases of Jack Harlow’s Jackman., Tïesto’s Drive and Ed Sheeran’s Subtract, which was released earlier this month. CFO Eric Levin noted that the label’s release slate “was a little lighter in the first two quarters of the year and will be weighted to (the third quarter) and (the fourth quarter),” with upcoming releases expected from Dua Lipa‘s Barbie soundtrack, among others.
“We absolutely expect this to improve our results in recorded music streaming in the second half of the year,” Levin added.
Nonetheless, investors appear to be growing skittish over the lackluster performance. Tuesday’s closing price marked a sharp drop of nearly 20% of Warner’s stock over the past month, with the share price falling from $32.12 on April 10.
As the music industry grapples with the far-reaching implications of artificial intelligence, Warner Music Group CEO Robert Kyncl is being mindful of the opportunities it will create. “Framing it only as a threat is inaccurate,” he said on Tuesday (May 9) during the earnings call for the company’s second fiscal quarter ended March 31.
Kyncl’s tenure as chief business officer at YouTube informs his viewpoint on AI’s potential to contribute to the music industry’s growth. “When I arrived [at YouTube] in 2010, we were fighting many lawsuits around the world and were generating low tens of millions of dollars from [user-generated content],” he continued. “We turned that liability into a billion-dollar opportunity in a handful of years and multibillion-dollar revenue stream over time. In 2022, YouTube announced that it paid out over $2 billion from UGC to music rightsholders alone and far more across all content industries.”
Not that AI doesn’t pose challenges for owners of intellectual property. A wave of high-profile AI-generated songs — such as the “fake Drake”/The Weeknd track, “Heart on My Sleeve,” by an anonymous producer under the name Ghostwriter — has revealed how off-the-shelf generative AI technologies can easily replicate the sound and style of popular artists without their consent.
“Our first priority is to vigorously enforce our copyrights and our rights in name, image, likeness, and voice, to defend the originality of our artists and songwriters,” said Kyncl, echoing comments by Universal Music Group CEO Lucian Grainge in a letter sent to Spotify and other music streaming platforms in March. In that letter, Grainge said UMG “would not hesitate to take steps to protect our rights and those of our artists” against AI companies that use its intellectual property to “train” their AI.
“It is crucial that any AI generative platform discloses what their AI is trained on and this must happen all around the world,” Kyncl said on Tuesday. He pointed to the EU Artificial Intelligence Act — a proposed law that would establish government oversight and transparency requirements for AI systems — and efforts by U.S. Sen. Chuck Schumer in April to build “a flexible and resilient AI policy framework” to impose guardrails while allowing for innovation.
“I can promise you that whenever and wherever there is a legislative initiative on AI, we will be there in force to ensure that protection of intellectual property is high on the agenda,” Kyncl continued.
Kyncl went on to note that technological problems also require technological solutions. AI companies and distribution platforms can manage the proliferation of AI music by building new technologies for “identifying and tracking of content on consumption platforms that can appropriately identify copyright and remunerate copyright holders,” he continued.
Again, Kyncl’s employment at YouTube comes into play here. Prior to his arrival, the platform built a proprietary digital fingerprinting system, Content ID, to manage and monetize copyrighted material. In fact, one of Kyncl’s first hires as CEO of WMG, president of technology Ariel Bardin, is a former YouTube vp of product management who oversaw Content ID.
Labels are also attempting to rein in AI content by adopting “user-centric” royalty payment models that reward authentic, human-created recordings over mass-produced imitations. During UMG’s first quarter earnings call on April 26, Grainge said that “with the right incentive structures in place, platforms can focus on rewarding and enhancing the artist-fan relationship and, at the same time, elevate the user experience on their platforms, by reducing the sea of noise … eliminating unauthorized, unwanted and infringing content entirely.” WMG adopted user-centric (i.e. “fan-powered”) royalties on SoundCloud in 2022.
Citing a need to make “hard choices in order to evolve,” Warner Music Group chief executive Robert Kyncl announced on Wednesday a slate of cost-trimming measures that includes a 4% reduction in staff and a reallocation of resources towards tech initiatives and “new skills for artist and songwriter development.”
Kyncl, who took over as CEO earlier this year, said in a staff memo seen by Billboard that approximately 270 people will be let go and that there will also be reductions in open positions and various discretionary spending at the company to “provide us with additional flexibility for our future.”
Affected employees will hear from their managers in the next 24 hours, Kyncl said, adding that the actions are not a “blanket cost-cutting exercise” and that “every decision has been made thoughtfully by our operators around the world, who considered the specific needs, skills, and priorities of each label, division, and territory, in order to set us up for long-term success.”
Read Kyncl’s full memo below:
Hi everyone,
As I mentioned at our first All-Hands meeting last month, I’m committed to direct and honest communication with all of you. The music business is filled with new possibilities: more fans are engaging with artists and songs than ever, our reach is enormous, and new business models are constantly emerging. WMG is positioning itself for this new phase of growth at the intersection of creativity and technology.
In my discussions with our leaders across the company, many of them came to the same conclusion – that to take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve. Consistent with this direction, we’ve made the tough decision to reduce our global team by approximately 270 people, or about 4%. At the same time, we’re reallocating resources towards new skills for artist and songwriter development and new tech initiatives. We’re also reducing discretionary spending and open positions to provide us with additional flexibility for our future.
I want to be clear that this is not a blanket cost-cutting exercise. Every decision has been made thoughtfully by our operators around the world, who considered the specific needs, skills, and priorities of each label, division, and territory, in order to set us up for long-term success. The leader of your division will either be holding a town hall or sending an email to explain more about this path forward.
I’m also acutely aware of how unsettling this can be. Having to say goodbye to talented colleagues is always difficult. For those of you who will be leaving WMG, please know that we’re deeply grateful for your hard work, dedication, and all you’ve contributed to this company. In all territories, except where you are explicitly told there will be a review or consultation period, anyone affected will hear from your leaders, supervisors, or People team reps within 24 hours. I know this transition will be tough, but we’re committed to supporting you during this process.
In times of great disruption in our world and society, artists and songwriters who have something original to say, who rise to the occasion, will resonate the loudest. Equally, the rapid changes in our economy and ecosystem create the conditions and opportunities for innovation and breakthroughs. I learned when I joined WMG that this is a gritty, incredibly resourceful, and highly impactful team that I want by my side every day of the week. We deliver for our artists, songwriters, and labels with laser focus, inventiveness, and care. And now, more than ever, we need to double down on that.
I’ll have more to say about all of this at our next All-Hands meeting, including more details on our plan.
Let’s support each other with empathy and integrity as we work through this process.
Thank you,
Robert
Jessica Keeley-Carter was promoted to executive vp of global marketing at Warner Music Group. Based in the United Kingdom, Keeley-Carter will take on a bigger global role, working closely with marketing leads in Asia, Latin America and Canada alongside her current remit in the U.K. She most recently served as senior vp of global marketing. That role will now be filled by Tony Corey, who was previously vp of global marketing. Based in New York, Corey will continue supporting campaign executions and long-term artist strategy; he was previously vp of global marketing. He has led Warner’s Global Priority System since joining the company in 2021.
The Worldwide Independent Network (WIN), which represents the global independent music sector, appointed its board of directors for 2023. Partisan Records COO Zena White will serve as chair, working closely with WIN’s newly appointed CEO Noemí Planas on delivering on the organization’s goal of growing and connecting the indie music community worldwide. Joining White on the board are three new directors: AIM’s COO Gee Davy, N.E.W.S managing director Geert De Blaere, Sub Pop Records/Hardly Art/Sub Pop Publishing president Tony Kiewel and GoDigital, Cinq Music and VidaPrimo chair Jason Peterson, who was elevated from his prior role of board observer. They will succeed outgoing directors Lisa Levy (Robbins Entertainment USA), Michael Lambot ([PIAS]) and Paul Pacifico (AIM). Elsewhere, former WIN board chair Maria Amato (AIR) is now treasurer; she will continue to sit with Mark Kitcatt (Everlasting Records), Richard Burgess (A2IM), Oliver Knust (IMICHILE) and White on the executive committee. Finally, Nerea Serrano was appointed community and projects manager at WIN; she joined the organization as communications officer in 2021.
Jamie Spinks was named head of A&R at Columbia Records UK, reporting directly to Columbia UK president Dipesh Parmar. He joined the label last year, signing and developing Venbee. He’ll be tasked with overseeing the direction of the Columbia UK A&R strategy while also running the joint venture label Room Two. Spinks was at Polydor Records for 10 years prior to his Columbia hire.
Rob Brown was hired as COO at mprs Global, the royalty tracking and collection service founded by the team behind mtheory. He joins from Kobalt Music Group, where he worked for nearly 12 years, most recently as vp of business affairs & commercial strategy. He can be reached at rob@mprs.co.
Ultra International Music Publishing opened a new creative hub in Lagos, Nigeria, where its African operations will be overseen by London-based A&R manager Harold Serero. As part of the announcement, the publisher revealed the signing of Nigerian artist Amexin to the roster.
Beville Dunkerley will step down from her role as SiriusXM/Pandora head of country music talent & industry relations to launch her own media training consultancy focusing on actors, athletes, authors and recording artists. She joined Pandora more than six years ago prior to its SiriusXM merger. Dunkerley can be reached at bevilledarden@gmail.com. (via Country Aircheck)
Four executives were promoted at Zync/Round Hill Music: Madison Norris to executive vp of creative operations, Kelly Ross to vp/head of creative licensing and publishing, Becca Luce to senior director of film & TV/creative publishing and Steve Nalbert to vp of sync licensing and digital. Norris will facilitate day-to-day management for the Zync creative licensing team, leading marketing efforts for both frontline and back catalog. Ross will lead synch licensing for the catalog and handle pitching for advertising while also signing songwriters and artists to frontline publishing and master deals. Luce will guide the co-write team with expanded A&R responsibilities along with film and TV pitching. Nalbert will build, optimize and carry out Round Hill Music’s digital strategy, collaborating with partners including Meta, Apple and TikTok.
Agent Dave Kaplan joined Paladin Artists, where he brings more than 20 clients including Spacey Jane, The Black Angels, Gary Numan, The Kills, Melody’s Echo Chamber and Allah-Las. He was previously at ICM Partners and has also worked at Paradigm and The Agency Group.
Keisha Perry Walker joined entertainment law firm Carter + Woodard as a new counsel. She will provide counsel to recording artists, producers, songwriters, manager, executives, independent labels and digital influencers, among others.
Linda Yaccarino was appointed group chair at YMU, a role she will occupy alongside her current position as chairman of global advertising and partnerships at NBCUniversal. She will work closely with YMU Group CEO Mary Bekhait. Also at YMU, Dani Chavez was promoted to senior marketing manager of the U.S. music division. Based in Los Angeles, Chavez will work closely with the company’s individual artist managers while reporting to YMU Music US head of marketing SuzAnn Brantner.
Country Music Hall of Fame and Museum senior vps Nina Burghard and Lisa Purcell were promoted to executive vp roles. Burghard was elevated to executive vp of finances and operations and Purcell was upped to executive vp of external affairs. Both will report to CEO Kyle Young. Burghard oversees the museum’s financial operations as well as some information and technology elements, in addition to the human resources and maintenance & operations departments. Purcell supervises the marketing and public relations departments and provides leadership in individual & planned giving, memberships & corporate partnerships, educational programming and public affairs. Purcell can be reached at lpurcell@countrymusichalloffame.org and Burghard can be reached at nburghard@countrymusichalloffame.org.
Also at the Country Music Hall of Fame and Museum, Ben Hall was promoted to vp of development, Paul Kingsbury was hired as senior director of editorial and interpretation, Luke Wiget was promoted to senior director of creative and Leigh Anne Wise was promoted to senior director of facilities, operations and sustainability. Hall oversees diverse fundraising initiatives and manages Country Music Hall of Fame member relations on behalf of the museum. Kingsbury will manage editorial staff and the development of written content for the museum’s website, exhibitions, public programs, publications, educational materials and online offerings. Wiget will guide the creative and project management teams responsible for producing the museum’s exhibitions, books, videos, education materials, marketing collateral and social media content. Wise oversees facilities maintenance, building projects, building operations including security, housekeeping and event setup, as well as sustainability initiatives.
Courtney Allen was promoted to senior director of A&R at Concord Music Publishing in Nashville. She was previously director of A&R. During her time at the publisher, she has signed Justin Wilson and Jennifer Wayne and contributed to catalog and publishing deals with Russell Dickerson and Corey Crowder. Allen can be reached at Courtney.allen@concord.com.
Jon Pikus was named vp of A&R/business development at Wixen Music Publishing. Based in the company’s Calabasas, Calif., office, Pikus will sign new artists, songwriters, producers and catalogs to Wixen’s roster, in addition to setting up collaborations and co-write sessions for the existing roster. He’ll report to Wixen president/CEO Randall Wixen, CFO/COO Andrew Wixen and chief technology officer/executive vp Jason Rys. Pikus has held A&R roles at Columbia Records, Interscope Records, MySpace Records and more. He can be reached at jpikus@wixenmusic.com.
Lydia Kanuga was promoted to vp of media relations at PR firm The Chamber Group. In her new role, Kanuga will create and implement publicity strategies for a roster that includes Usher, the Michael Jackson estate, Mass Appeal and Toni Braxton. She will also take a lead role in business development prospects for the company. Based in New York, Kanuga reports directly to Chamber Group principal/founder Chris Chambers. She can be reached at lydia@thechambergroup.com.
Alex Siciliano was appointed senior vp of communications at the National Association of Broadcasters (NAB). He will lead NAB’s communications team, and oversee the association’s outreach while spearheading messaging strategies to further NAB’s initiatives and advocacy issues before Congress and the Biden administration. He also serves as chief spokesperson for NAB and as a key advisor to senior leadership. He most recently worked as deputy chief of staff to former Sen. Cory Gardner (R-Col.).
John Moser and Ale Delgado were promoted to senior project managers at Thirty Tigers in Nashville; both were previously project managers. With their elevations, Moser and Delgado will play a bigger role in departmental operations while managing album release campaigns for the company. Elsewhere, Micki Windham was promoted to senior production manager, up from her previous role of production manager; Sydney Clancy‘s role was expanded from catalog coordinator to production coordinator, which will see her supporting all production efforts for both new releases and inventory management; and Alex Ramsay was promoted to independent retail sales & marketing manager, a bump from her previous role of independent retail sales & marketing coordinator. Thirty Tigers also announced several recent hires, including Kayla Ganz and Lauren Caudle. Ganz boarded the company in February 2022 as director of digital sales and streaming, joining from Naxos Music Group, while Caudle joined in September 2021 as project manager coordinator before being promoted to project manager in June 2022. Finally, Zack Hallcroft returned to Thirty Tigers as project management coordinator, joining the company from CDA Entertainment.
The Women’s Music Business Association (WMBA) announced its 2023 board of officers, organizational chairs and board of directors. Serving on the 2023 board are president Virginia P. Brick (SESAC); vp Aura Guadagno (Varnell Enterprises); treasurer Taylor Baird (Wiles + Taylor & Co.); secretary Alyssa Hoffman (manager of Wayland); events & education co-chairs Libby Gardner (Academy of Country Music) and Megan Clemons (CSM Management); and marketing & membership co-chairs Mackenzie Adkins (Rhonda & Company) and Aya Robinson (Opry Entertainment Group). On the WMBA board of directors are newly-elected chairwoman Amery Fridenstine (Above Board Consulting) along with brand-new board members Sheree Spoltore (Global Songwriters Connection), Jensen Sussman (Sweet Talk Publicity) and Christy Walker-Watkins (The AristoMedia Group/AristoPR). Brandi Simms (MooTV, Moo Creative & The Steel Mill) will continue in an advisory role as board of directors emeritus, while Lauren Spahn (Shackelford, Bowen, McKinley, & Norton) will act as legal counsel.
Ed Thompson joined ATC Live, bringing clients Jungle, Iron & Wine, Car Seat Headrest, Zero Zero Bonito and Pigs Pigs Pigs Pigs Pigs Pigs Pigs to the agency. He joins the company from Free Trade Agency. Thompson can be reached at ed@atc-live.com.
Mallory Mason Pascal was promoted to partner at artist business management firm KFBM (previously King Business and Financial Management); she joined the company in 2020. Pascal can be reached at mallory@kbfmgmt.com.
Abi White was named head of dance and electronic promotions at Kartel Marketing Agency, the marketing and media promotions agency within Kartel Music Group. White will lead promotions for all dance and electronic agency clients as well as Kartel’s electronic label, EMK. She joins the company from For the Record PR, where she served as co-founder and co-director.
Desiree McCann was named manager of international marketing at Los Angeles-based management company Hills Artists. She will handle day-to-day management for Hills Artists clients while supporting and driving international marketing campaigns for the roster. Additionally, Brenna Rindfuss has been promoted to manager. McCann joins Hills Artists from Universal Music Australia, where she worked in artist development. She can be reached at desiree@hillsartists.com.
Allegra Willis Knerr was promoted to executive vp of global synch licensing at BMG, where she will manage the company’s synch licensing teams across the globe. The Los Angeles-based executive was previously senior vp of global synch licensing, a role she was elevated to last year. She’ll continue reporting to BMG chief content officer Dominique Casimir.
Willis Knerr can be reached at Allegra.Willis.knerr@bmg.com.
Dan Wall joined Live Nation Entertainment as executive vp of corporate and regulatory affairs. Wall has been a key advisor to the company for more than 12 years, previously offering guidance as lead outside counsel as a partner at law firm Latham & Watkins.
Kok-Siew Yeo was named managing director of Warner Music Taiwan. He will oversee Warner Music’s operation in Taiwan and work to strengthen the company’s position as an important player in the global Mandopop industry. Kok-Siew joins the company from Meta, where he served as creator partnerships lead. Based in Taipei, Kok-Siew will report to Warner Music Asia co-presidents Chris Gobalakrishna and Jonathan Serbin.
Vinit Thakkar was named managing director at Sony Music Entertainment in India. He joins the company from Universal Music India, where he served as COO of India and South Asia. (Via afaqs!)
Lou Al-Chamaa was named senior vp/head of A&R publishing at Avex USA. He arrives at the company following six years at Sony Music Publishing, where he served as vp of A&R.
Jennifer Hills and Sarah Desmond were promoted to co-managing directors of Universal Music UK’s brand partnerships and synch division Globe. Both were previously senior vps. Reporting to Hills and Desmond will be Adam Soffe, who is returning to Globe as vp/head of synch, creative, as well as Neil Mulford, who has been promoted to vp/head of synch, licensing.
Vickie Nauman, founder/CEO of music tech consulting company CrossBorderWorks, joined the advisory board of Barcelona-based Web3 music company KLOOV. The company works on digital collectibles, experiences and NFTs.
Nina Musolino joined Page 1 Management as a manager out of the company’s Nashville office. She will work closely with senior director Danielle Middleton in New York as she signs and manages talent. Musolino reports to Page 1 founder and CEO Ashley Page. She was most recently a publisher and artist manager at Forward Music in Nashville. Musolino can be reached at nina@page1management.com.
Jay Cruze was hired as director of Southeast promotion and marketing at Big Machine Records out of Nashville. Cruze succeeds Jeff Davis, who retired last year. He most recently worked at iHeartMedia, where he helped develop and implement national programming for the company’s country platforms. Cruze can be reached at Jay.Cruze@bmlg.net.
New Warner Music Group CEO Robert Kyncl addressed investors for the first time since taking over the company at the top of the year, acknowledging the “tough quarter” for the major label while also laying out a vision for how he sees the music industry’s present and future.
The company posted revenues of $1.48 billion for the quarter that ended Dec. 31, 2022, down 8% from the same period the year before, which the company noted contained an extra week, skewing comparisons slightly. Growth came from the publishing sector, which saw revenues up 9.2%, or 14.2% in constant currency, while recorded music revenue fell 10.6%, or 5.6% in constant currency, with recorded streaming revenue down an 6.7%, though the company said that streaming revenue was up half a percentage point when adjusted for the extra week, with a lighter release schedule and falling ad-supported streaming revenue the causes.
That led to Kyncl’s acknowledgement that WMG had a tough quarter, noting that, “like most companies, WMG has been dealing with macroeconomic headwinds and the impact of currency exchange rates.” He added that WMG’s release schedule for this year is weighted toward the second half of the year, with releases from Ed Sheeran, Cardi B, David Guetta, Aya Nakamura and Bebe Rexha on the horizon.
Kyncl then spoke about both his decision to join Warner after 12 years at YouTube and seven at Netflix, as well as his vision for growth for the music industry and the effects of artificial intelligence and TikTok on how that future will look, both creatively and monetarily.
“This industry has achieved something rare: It’s built mutually beneficial, long-term partnerships with many of the world’s biggest companies — Amazon, Apple, Google, Meta, Spotify and Tencent among them,” he said. “As successful as music has become, there’s still meaningful upside ahead for three reasons. One, as technology opens up emerging economies, the industry’s addressable market will continue to expand even further. Two, innovation is constantly creating new use cases for music, giving us the opportunity to diversify our revenue sources. Three, music is still undervalued, especially when compared to other forms of entertainment, like video.”
On the last point, Kyncl pointed out that Netflix’s subscription price has roughly doubled since 2011, the year that Spotify debuted in the U.S., while the price of a music subscription has remained largely flat, even though music subscriptions contain access to a wide swath of the world’s available music, whereas video streamers — of which nearly 80% of U.S. households subscribe to three — are segmented.
He also spoke about his vision for WMG’s role in that future, noting that he hired two former YouTube employees in his first five weeks — Tim Matusch as executive vp of strategy and operations, and Ariel Bardin as president of technology — which should “tell you something about our priorities” in the future.
“We will continue to invest in new artists and songwriters, our catalog and our global expansion,” he said. “At the same time, we plan to thoughtfully reallocate some resources to accelerate how we use technology and data to empower artists and songwriters, as well as drive greater efficiency in our business.” That, he added later in the Q&A section of the call, will come “with continued focus on financial discipline and cost containment.”
That doesn’t necessarily mean layoffs, however; he noted that WMG “has actually been much more measured in its headcount growth, for instance, over the last few years than others in the industry who are now undergoing significant layoffs,” and had been addressing financial initiatives even before the recent fluctuations in the market. “But again, I’d like to reiterate that I’ll be focusing on reallocating our internal resources in order to invest in technology and drive not only more tools for our creators, but also greater efficiencies for us,” he added.
On the topic of AI — which he called “probably one of the most transformative things that humanity has ever seen” — Kyncl said that the conversation falls into four buckets in how content owners need to work with AI platforms: “One is the use of existing copyrights to train generative AI. The second is sampling of existing copyrights as the basis for new and remixed AI generated content. The use of AI to help and support creativity — so an assistive way to do that. And most importantly, find ways to protect the craft of artists and songwriters from being diluted or replaced by AI-generated content.”
But he also stressed that the conversation is not just about the future of AI, but about how things can be handled today to prepare for that future — namely, that the processes for identifying and tracking copyrighted material on platforms and making sure they are monetized for the copyright owner need to be better in the present to prepare for what is to come. That’s something Kyncl has plenty of experience with from his time with YouTube, whose ContentID system was overseen by new WMG exec Bardin, and something he says Warner will be focusing on under his purview.
Another benefit from his YouTube days, Kyncl says, is his experience being on the other side of the negotiating table from the major labels when it came to developing YouTube as a partner with and contributor to the music industry. During his tenure, Kyncl helped steer the relationship between YouTube and the labels from one of animosity to one of mutual benefit, which he stressed came from a collaborative approach — one he intends to bring to Warner in its approach to its relationship with TikTok, which is currently in a similar situation to the YouTube of old, in terms of being under fire from the music business for its perceived low payouts and under-valuation of music on its platform. Kyncl described how YouTube’s position changed in answering a question about whether the labels will push for changes with its relationship with TikTok.
“At YouTube, we looked at this problem very closely, and we decided that music was very important to us, and that’s why we did it,” he said, referencing YouTube’s push into subscription streaming, tools like Shorts and improvements to ContentID, among other initiatives. “TikTok needs to do that. It’s the right decision for them to evaluate. And you can see from YouTube’s execution what the results of the finding was for us. But I can’t speak to what TikTok finds. That’s up to them. But my answer is, a holistic relationship is what we’re looking for.”
Warner Music Group adds another YouTube veteran to its executive leadership team with the hiring of Ariel Bardin as the label’s first president of technology. In his new position, Bardin will head tech and data teams tasked with creating new systems and products to “support the next phase of WMG’s global growth,” the company said on Tuesday (Feb. 7).
The New York-based Bardin will report to his former Google colleague Robert Kyncl, who officially became CEO of WMG on Feb. 1 following the departure of longtime chief Stephen Cooper.
“Ariel understands how technology can serve creativity to have real, long-lasting cultural and commercial impact,” Kyncyl said. “He has a tremendous appreciation for artistry, deep technical expertise, and a proven track record in execution at the highest level. We’re fortunate to welcome him to our team.”
Bardin spent 16 years at Google, where as vp of product management he helped build, launch and grow some of the company’s household-name products, including Google AdWords and Google Payments. For YouTube, he is credited with leading teams working on various creator-centric products as well as its Content ID system, which finds and monetizes user-uploaded videos for rights owners. In the fall of 2021, Bardin joined software company Celonis as its chief product officer.
“I had the pleasure of working with Robert during our time together at Google, where I especially enjoyed our work empowering and equipping YouTube creators,” Bardin said. “WMG is entering an exciting new era under his leadership, and I’m looking forward to joining him and the rest of the company on a mission to provide the highest level of service to the company’s artists, songwriters, and teams.”
The appointment of a newly created president role arrives two days before WMG will announce financial results for its first quarter — along with its first earnings call with Kyncyl at the helm.
LiveCo, a new concert promotion company that combines BASE Entertainment, Premier Productions, Icon Concerts, Rush Concerts and Peachtree Entertainment, launched with a team that includes Brian Becker and Mark Maluso (BASE Entertainment), Michael Pugh and Shane Quick (Premier Productions), Paul Meloche (Icon Concerts), Jacob Reiser (Rush Concerts) and Bradley Jordan (Peachtree Entertainment). “Designed to help expand the live entertainment industry,” according to a press release, LiveCo represents talent and productions including Jimmy O. Yang, Criss Angel, Cocomelon Live, Cody Johnson, Jo Koy, Dude Perfect, Zach Bryan, MercyMe, Elevation Worship and Gabriel Iglesias.
BMI announced several key promotions within its creative team. Rafael Martinez and John Ellwood were appointed to the newly created roles of vp of strategy and business affairs, creative and assistant vp of strategy and business affairs, creative, respectively. Reema Iqbal was named executive director of creative, film, TV & visual media. LuAnn Davidson was promoted to executive director of creative administration. Nina Carter was promoted to senior director of creative, partnerships & events. Jon Miller was named director of creative, Europe. Lastly, Katie Kilgallen and Reginald Stewart were both promoted to director of creative. Ellwood can be reached at jellwood@bmi.com, Iqbal can be reached at riqbal@bmi.com, Carter can be reached at ncarter@bmi.comm, Miller can be reached at jmiller@bmi.com and Kilgallen can be reached at kkilgallen@bmi.com.
Todd Moscowitz‘s Santa Anna label appointed Dave Anderson as GM and Carlos “Los” Orgando as vp of promotion. Anderson, who previously served in vp of commerce roles at Geffen and Warner Records, will oversee Santa Anna’s marketing, promotion and digital teams. Orgando, who will assist the label in developing and executing its promotion strategy across several formats, previously held the vp of promotion role at both Geffen and Warner Records. Elsewhere, Derek Lee added the title of CFO of Santa Anna to his existing title of senior vp & CFO at Moscowitz’s Alamo Records.
William “Andy” Anderson was promoted to chief revenue officer at American Urban Radio Networks (AURN); he was previously president of sales. In the role, Anderson will help maximize revenue opportunities, product acquisitions and original content creations for the company. Anderson previously served as director of urban/Canadian advertising at Billboard. (via Radio Facts)
Markus Holzherr was appointed to the newly created role of chief business officer at Warner Music Central Europe. In his new role, Holzherr will oversee the finance, new business, research & analytics and legal departments. He comes from DFB GmbH & Co. KG, where he served as managing director of finance and controlling.
Rob Gross was hired as senior vp of label services at The Syndicate. In the newly-created role, Gross will provide full-scale project management for album releases and sales for all aspects of the company’s services in radio, marketing and PR. Most recently a partner at Shark Attack, he brings clients Warner/Rhino Records and Dine Alone Records to The Syndicate. Gross can be reached at gross@thesyn.com.
Fresh N Sassy Productions CEO/founder Janishia Jones launched ENCORE Music Tech Solutions, a music tech consultancy that signed EMPIRE Publishing as its first client. Under that deal, ENCORE will work with EMPIRE Publishing to scale and improve the publisher’s performance across royalty payment, reporting, synch and other complex systems. ENCORE has already “helped create crucial systems” for EMPIRE Publishing including solutions to better manage agreements, financial accounts and copyrights, according to a press release. Jones can be reached at Info@encoremusic.tech.
Liberty Wilson was promoted to vp of international marketing at Warner Music UK, advancing from her previous role of international marketing director. She’ll continue reporting to the label’s senior vp of international marketing, Victor Aroldoss.
Human Re Sources hired Junko Takeda as vp. Based in Los Angeles, Takeda will oversee day-to-day label relations of Human Re Sources’ Los Angeles and Atlanta operations and continue building the company’s roster of artist clients with support from The Orchard. Takeda most recently served as head of A&R operations at Warner Chappell Music.
The National Independent Venue Foundation (NIVF) appointed Carl Atiya Swanson as executive director. In the role, Swanson will play a key role in “expanding and solidifying NIVF’s programmatic vision,” according to a press release, collaborating with the executive leadership of the National Independent Venue Association (NIVA) and NIVF “to preserve and nurture the ecosystem of independent live performance venues, festivals and promoters throughout the U.S.” He will work to strengthen the independent venue sector via economic development initiatives and workforce development programs while managing critical services including emergency relief funding. Swanson was previously associate director at Springboard for the Arts.
Jacee Badeaux and Halle Bartlett were promoted to senior creative director of A&R and coordinator of A&R, respectively, at Big Yellow Dog Music. In his new role, Badeaux will continue to curate activity for the company’s writers, artists and producers; he was previously creative director. Bartlett, who was previously creative assistant, will be responsible for calendar management, writer coordination, song pitching and social media for Big Yellow Dog songwriters. Badeaux can be reached at Jacee@bigyellowdogmusic.com and Bartlett can be reached at halle@bigyellowdogmusic.com.
Stephanie McGuire was appointed senior A&R international at CTM Publishing. She will continue to guide CTM’s composers, authors and producers while also focusing on fostering more international collaborations and createingmore overseas opportunities for the company’s roster. McGuire can be reached at Stephanie.mcguire@ctm.nl.
John Page joined Oak View Group (OVG) as senior vp of Acrisure Arena, the Coachella Valley Firebirds and OVG360 Facilities. In the role, he will oversee the management and oversight of all three entities. Based in Palm Springs, Page reports to Coachella Valley Firebirds president Tod Leiweke, OVG business development president Francesca Bodie and OVG360 president Chris Granger. Prior to joining OVG, he served as president of Spectra, which OVG acquired in November 2021.
Nashville’s Society of Leaders in Development (SOLID) announced the newly elected members to its 2023 board of directors: President Erin Pettit (Wiles + Taylor), vp Rio Van Risseghem (The Orchard), secretary Jenna Smith (SESAC) and treasurer Ryan Cunningham (ONErpm). Additionally, Grayson Flatness (Sounds Good) was named alumni president of the SOLID Alumni Board.
Hyperreal — the tech company that develops “digital twins” for artists and other creators, allowing them to control their digital identities in the metaverse and beyond — named Scot Barbour chief technology officer and Tim Coleman vp of digital humans. Meanwhile, the company’s chief innovation officer, Sergi Sagas, joined the Hyperreal board of directors. Barbour, who was previously head of production and digital DNA acquisition, will drive the company’s technology roadmap and partnerships and supervise physical and virtual production for Hyperreal. Coleman, who joined Hyperreal in 2020, will head up the effort to build the company’s “highly-detailed, performance ready, photoreal digital avatars known as ‘HyperModels,’” according to a press release.
Warner Music Group will launch Rhythm City — a “music-themed social roleplay experience” — on the gaming platform Roblox on February 4th.
Not only will Rhythm City host events and shows from Warner’s artists, it will allow users to take on roles like DJ, producer, or dancer as they explore the virtual world and purchase digital items only available on Roblox. Rhythm City was developed in partnership with Gamefam, a metaverse-focused gaming and content company.
Warner is the latest music company to partner with Roblox, which has been around for more than 15 years but exploded in popularity with young users during the pandemic. Sony Music and BMG announced partnerships with Roblox in 2021. Spotify became “the first music-streaming brand to have a presence on Roblox” last year.
Earlier this month, Roblox announced that it had more than 61 million daily active users in December who spent close to 5 billion hours on the platform. It’s no surprise, then, that record companies are eager to find new ways to seed their music to Roblox users.
“Immersive online environments represent a meaningful opportunity for reaching a growing number of fans who want to use virtual communities to enjoy shared music experiences,” Dennis Kooker, Sony Music’s president of global digital business and U.S. sales, said in 2021. When BMG announced its Roblox partnership, Christopher Ludwig, BMG’s vp of global digital partnerships and strategy, noted that the platform “has transformed the gaming experience for millions and is proving a powerful way to introduce new generations to music they love.”
In a statement announcing Rhythm City, Oana Ruxandra, chief digital officer and evp, business development at Warner Music Group, struck a similar tone. “As our lives become increasingly digital, exciting opportunities are opening up for artists and fans to engage and interact,” she said. “WMG is focused on facilitating the foundations of these new experiences by building and experimenting across evolving ecosystems. This partnership with Gamefam sees WMG creating a place for artists and audiences to come together to define and contextualize their communities within living spaces.”
Joe Ferencz, founder and CEO at Gamefam, added that “we are thrilled to have a chance to combine our passion for developing authentic, highly-engaging metaverse content with our love of music.” “WMG has been a brilliant partner in pushing innovative strategies, and together with our expertise, we’ve channeled that into production excellence creating a new community for music lovers in the metaverse,” he continued.
Warner acts, including Twenty One Pilots and David Guetta, have previously hosted virtual concerts on Roblox.