wmg
During the course of Robert Kyncl’s nearly two-year tenure as Warner Music Group’s CEO, the former YouTube exec has focused on positioning the historic label for longtime growth.
In early 2024, WMG reported record earnings but announced a 10% workforce reduction. Then, August saw a major leadership shakeup: Max Lousada exited, Julie Greenwald was briefly chairman of Atlantic Music Group before leaving, and Elliot Grainge became AMG’s CEO. Under Grainge, Atlantic restructured and new leadership came in at 10K Records and 300 Entertainment. These moves signaled a loud-and-clear generational shift in leadership, marking a transformative year for Atlantic and Warner.
Looking back at a year of bombshells and breakouts — success stories include Zach Bryan, Benson Boone, Teddy Swims, Charli xcx, Dua Lipa and more — Kyncl writes in a note to staff, obtained by Billboard, that he is grateful for their dedication in a year he has long-dubbed the “Year of the Next 10.”
Trending on Billboard
In the note, Kyncl writes that the company achieved significant milestones, including having the most listened-to artist (Bruno Mars), the No. 1 song of the year (Boone’s “Beautiful Things”), and the most in-demand songwriter (Amy Allen). He also highlights the importance of change and innovation in the music industry, celebrating the team’s success in delivering originality, which “gives this industry its energy and optimism.”
“We’ve not just helped our artists and songwriters do new, brave, and disruptive things, we’ve held ourselves to the same standard,” he writes. “The industry is at a pivot point, and the changes we’ve made this year put us on the front foot.”
He highlights that WMG was a clear leader in onboarding new talent in the marketplace, with artists like Boone, Swims and Allen receiving critical acclaim. Established acts also reached new heights, he notes, with Mars becoming the world’s biggest streaming artist, Charli xcx exhibiting “radical newness” during brat summer and Linkin Park making a notable return with a new singer. The company further expanded its reach through catalog reissues by the likes of the Grateful Dead, Madonna, David Bowie, Neil Young and Joni Mitchell, among others.
Kyncl writes that, internally, WMG has focused on growth by increasing A&R investments by double digits, overhauling leadership, and advocating for new pricing and royalty models in streaming. The company also embraced AI — Kyncl cites the recreation of Randy Travis’ voice as a prime example — and prioritized global market share through a streamlined structure.
Looking ahead to 2025, Kyncl encourages continued innovation, aiming to amplify unique voices, grow the music ecosystem and deepen fan engagement. He rounds out the memo by celebrating the team’s efforts and hinting at exciting projects on the horizon.
“There’s still plenty of work to do, but we’re getting stronger, faster, bolder all the time,” he says. “As I’ve said before, focus and simplicity brings great intensity and impact.”
Read the full memo below:
Hi everyone,
I wanted to take a moment to thank you for your incredible dedication and passion over the past year.
In January, I talked about 2024 being the Year of the Next 10, where we moved to set ourselves up for the next decade. We’ve ended the year with the No.1 most listened-to artist, No. 1 song of the year, and the most in-demand songwriter of the year. I know the last twelve months have been intense, and I’m so grateful to you all for rising to the occasion. We’ve achieved something that only a really collaborative and committed team could… We simultaneously delivered for our artists and songwriters, while doing the tough work of change.
And change is a necessity in this business… Music is nothing without the new. New sounds, new ideas, fresh looks, different directions. That’s what stands out. That’s what cuts through the noise. That blast of originality is what gives this industry its energy and optimism.
There are countless examples of innovative successes across the company. In a note like this, I can’t be comprehensive, so please excuse that I’ve picked just a few examples to highlight our trajectory.
NEW TALENT
When it comes to impactful new talent, we’ve led the industry this year.
Benson Boone had the biggest song of 2024 worldwide, and Teddy Swims had the biggest song of the year in the U.S., the largest market. Both are signed to Warner Records and Warner Chappell, and both are up for Best New Artist at the Grammys. Amy Allen became the planet’s hottest songwriter and is nominated for Grammy Songwriter of the Year, alongside WCM’s Jessi Alexander and RAYE.
Across the world, we have an extraordinary new generation lighting the way forward, including Artemas, Aziya, Bea and her Business, BENNETT, Bug Eyed, Dasha, Florence Road, Forrest Frank, Jeff Satur, Jordan Adetunji, The Marías, Michael Marcagi, Tokischa, Roxy Dekker, TitoM, and Yuppe.
NEW HEIGHTS
We’ve also helped established artists and songwriters reach new heights, telling their stories in bold, new ways.
Bruno Mars became officially the biggest artist in the world (smashing records with 138 million monthly listeners on Spotify!), thanks in part to new collaborations, including with ROSÉ, who herself set new streaming records for a K-pop soloist.
Then there’s the radical newness of Charli xcx’s Brat, or the record-breaking return of Linkin Park, with a soulful new singer. As well as incredible new projects from stars around the world such as Alex Warren, Ana Mena, Ayed, AYLIVA, Bailey Zimmerman, Burna Boy, Cardi B, Charlie Zhou, Coldplay, CYRIL, Dani Fernández, David Guetta, Diljit Dosanjh, Don Toliver, Dua Lipa, Ed Sheeran, Fred again.., Geolier, Gunna, Iñigo Quintero, Jack Harlow, Kenya Grace, King, Lay Zhang, Lil Uzi Vert, María Becerra, Megan Thee Stallion, Michael Bublé, Miriam Bryant, Myke Towers, NLE Choppa, SCH, twenty one pilots, TWICE, and Zach Bryan to name a few; along with reissues of iconic music from David Bowie, Grateful Dead, Green Day, Joni Mitchell, Madonna, Neil Young, and Talking Heads… all of which won new fans, and drove new spikes in streams.
NEW WORLD
We’ve not just helped our artists and songwriters do new, brave, and disruptive things, we’ve held ourselves to the same standard. The industry is at a pivot point, and the changes we’ve made this year put us on the front foot.
There’s still plenty of work to do, but we’re getting stronger, faster, bolder all the time. As I’ve said before, focus and simplicity brings great intensity and impact:
➞Due to the changes we’ve made, we’ve delivered on our promise to put more money behind the music… growing our A&R investment by double digits.
➞We prioritized market share growth, bringing in pioneering new leaders in major markets, including the U.S. with Atlantic and in Japan, while investing in talent and entrepreneurs in high-growth territories, such as India.
➞We’ve shrunk the world, flattening our company, to make it easier for artists to break worldwide, while fully globalizing our catalog and distribution services.
➞We’ve successfully advocated for innovation in pricing and royalty models at the streaming services, while demonstrating the potential of AI (with Randy Travis still my personal favorite example!).
The throughline here is our powerful ability to amplify unique voices, crank up the contrast, and bring the shock of the new. Going into 2025, let’s lean into that expertise… we want to expand the music ecosystem while, crucially, growing our share. Our mission is to turn dreams into stardom and audiences into fans.
I hope you and your loved ones enjoy a well-deserved break. So many exciting things to come in 2025!
Robert
Over the past decade, vinyl has grown from a can-you-believe that comeback story to a serious business. Vinyl sales revenue in the U.S. grew 10% in 2023 to $1.4 billion, the same size as the market for Latin music. (The latter brings in far more money overseas. So, over the last few years, to feed demand, labels have started to release a growing array of products, from “collectible” color variations of hit pop albums to high-end products aimed at the audiophile market.
Rhino Entertainment, the catalog division of Warner Music Group, will announce today (Dec. 10) that it is launching a new premium reissue series, Rhino Reserves. The albums will retail for $31.98, with a level of quality higher than many reissues, for a price lower than higher-end audiophile reissues from Mobile Fidelity, which licenses albums from labels, or the company’s own Rhino High Fidelity albums. The first two albums, out Jan. 31 as part of Rhino’s annual Start Your Ear Off Right promotion, are Funkadelic guitarist Eddie Hazel’s 1977 album Game, Dames and Guitar Thangs and New Orleans icon Allen Toussaint’s 1975 Southern Nights.
One impetus for Rhino Reserves is the success of Rhino High Fidelity, an audiophile line that sells for $39.98 online, in numbered editions of 5000 (although the company often releases more unnumbered albums, if demand is high). The High Fidelity releases are sourced from analog tape and pressed on high-quality vinyl, and a few have sold out, including box sets of Doors and ZZ Top albums.
Trending on Billboard
“This is High Fidelity without the bells and whistles,” says Rhino senior director of A&R Patrick Milligan. “But these are in retail,” unlike the Rhino High Fidelity releases, which are only sold online. Milligan says the series will be sourced from analog masters, with the same attention to detail as the High Fidelity Series, and that the records will be pressed at Fidelity Records Pressing, the new plant owned by company behind Mobile Fidelity reissues. (The High Fidelity series is pressed at Optimal, in Germany.) They will be cut by mastering engineer Matthew Lutthans, although the first two releases will be done by Chris Bellman.
There is already some competition at this level. Blue Note has done well with its audiophile Tone Poet jazz reissues, as well as a high-quality but lower-priced set of reissues. Mobile Fidelity, which has been releasing high-end reissues for decades, is now more active than ever, as is Analogue Production. Both of those companies license the rights to reissue albums from the labels that own the rights.
Rhino Reserves will not release albums on a particular schedule, and the hope is that it will feature some hard-to-find classics, like the first pair of reissues, both of which are beloved by crate diggers but hard to find in high-quality pressings. Reissue buyers seem to be becoming a bit more varied in their tastes, as the generation that grew up with songs from the sixties gives way to one raised on seventies and eighties music.
Warner Music Group reported on Thursday that total revenue for its fiscal year rose 6% compared to a year-ago on strong digital and streaming subscription revenue. The company reported $6.43 billion in total revenue for the twelve months ending on Sept. 30, up 6% from the roughly $6 billion the company generated in the 12-months […]
Warner Music Group announced the launch of Warner Music Africa Francophone (WMAFR) on Thursday (Oct. 24).
The new venture will “spotlight incredible talent from Francophone Africa,” co-director Yoann Chapalain said in a statement. “It aims to connect diverse sounds and regions, elevate releases for maximum success, and expand the music’s reach globally.”
The launch comes at a time when demand for French-language music is growing. “Since 2019, French-language music streams have surged by 94%” on Spotify, the streaming service noted in a blog post in September.
“All regions of the world are embracing the richness and diversity of the French-language music scene,” according to Jeremy Erlich, head of music content at Spotify. “There’s been a sharp rise in the number of French-language music listeners on Spotify.”
Warner Music Africa Francophone will be a collaboration between Warner Music Africa, Warner Music France, and Africori, a distribution company. WMG previously announced that it acquired a majority stake in Africori in 2022.
Trending on Billboard
The company was working with around 7,000 artists at the time. “African music is booming all around the world and some of our artists are right at the heart of the explosion,” Yoel Kenan, CEO of Africori, said in 2022. “Through our partnership, Warner Music has proven that it is the perfect home for Africori and our artists going forward. I’m looking forward to continuing to work with them as we break more artists on a global scale.”
WMAFR will be led by Chapalain along with Marc-André Niang. Chapalain also serves as A&R Manager at Africori, and Niang continues on as A&R director, French-speaking African repertoire at WM France.
“It’s important for us to be able to create new synergies for the development and structure of the Francophone market in Africa,” Niang said in a statement. “While the region is steeped in both culture and talent, the ecosystem faces challenges. Our team will connect creatives and help shape the environment to drive cross-cultural success.”
Simon Robson, WMG’s president of recorded music for Europe, Middle East, and Africa, likened WMAFR to 91 North, a joint venture between Warner Music Canada and Warner Music India that launched in 2023.
“There’s a strong cultural trade route between France and West Africa,” Robson added. “WM Africa Francophone will help us support the artists in that space.”
Warner Music Japan has appointed longtime Universal executive Takeshi Okada as the label’s new president and CEO, with a start date of Dec. 2. He’ll report to Simon Robson, president of international recorded music, who is temporarily overseeing WMG’s recorded business in the APAC region until a permanent appointee is announced. Okada transitions from EMI […]
Welcome to the latest spin ’round the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music.
We’ve seen the departure of Spotify’s global head of music and a changing of the guard at Verve, but otherwise it’s been a fairly quiet week. Read on for [mostly] good news and also check out Billboard‘s just-released annual list of Latin music’s most powerful executives, plus our weekly interview series spotlighting a single executive, our helpful calendar of notable events, and have you ever wanted to look at tchotchkes inside the office of an executive while reading their in-depth answers to the most important questions facing the biz? From the Desk Of is probably your jam.
Aric Steinberg has been elevated to executive director of Sweet Relief Musicians Fund, the 30-year-old non-profit that delivers a lifeline to musicians and industry types facing financial hardships due to illness, disabilities or other challenges. Founded by folk singer-songwriter Victoria Williams in 1994 following the release of a star-studded benefit album on her behalf, the charity offers financial assistance to artists, composers, road crew, agents and others in the form of grants to cover essential expenses ranging from medical bills to housing and food. The LA-based Steinberg joined Sweet Relief in 2010 and most recently served as executive vp of development and artist relations, though he has been essentially filling the role since the 2017 passing of former director Rob Max. “It is long overdue that in 2024 we are officially giving Aric the title of executive director … as he has been embodying that position for many years now,” noted fund president Bill Bennett. “I look forward to an extraordinary future with Aric where Sweet Relief will continue to help more and more musicians and music industry workers in need.”
Trending on Billboard
Sweet Relief has assisted a wide range of artists over the years, most recently Sick of It All frontman Lou Koller and singer-songwriter Jesse Malin — who both have benefit concerts planned for them later this year. “I see a bright future for Sweet Relief as we continue to grow and help more musicians and music industry professionals every year,” said Steinberg. “This 30th anniversary year has been our best ever, and I look forward to serving the community in the years to come.”
Meanwhile…
Alen Torosyan is promoted to general manager of Warner Music Emerging Markets, effective Oct. 1, while Jonathan Jules has joined as vice president of creative. Both will report to Alfonso Perez Soto, president of emerging markets. This division is home to artists including Calin, Diljit Dosanjh and Joeboy, and covers rapidly growing regions such as Africa, Eastern Europe, India, and the Middle East, which have expanded through strategic investments and partnerships. Torosyan, with over a decade at Warner Music, was previously vp of operations for the division. Jules, formerly vp of international marketing and operations at EMPIRE, will now drive strategic leadership to WMEM’s A&R and marketing teams. Perez Soto praised Torosyan’s “unflappable” ability to multitask and carry out detail-oriented projects “without losing his forensic focus on detail,” and lauded Jules’ entrepreneurial drive and “ability to read the shifting sands of culture and music, anticipating tomorrow’s trends.” Perez Soto added: “Together, they’ll help us superserve artists and rapidly grow our business.”
Sony Music Publishing hired Caroline Elleray as vice president of creative, songwriter services, effective immediately. In this role, Elleray will lead efforts to support songwriters, manage catalogs and collaborate with global creative teams to explore new growth opportunities. The London-based Elleray reports to co-managing directors Tim Major and David Ventura. With over two decades of experience in music publishing, including previous stints at UMPG and BMG, she has discovered and developed artists like Coldplay, Keane, Feist, Rex Orange County and Mumford & Sons. Alongside her new role at SMP, Elleray will continue managing Second Songs, a publishing and management venture she co-founded in 2022 with Mark Gale. Second Songs, in partnership with SMP UK, represents talents like Victoria Canal and songwriters Matt Hales and Dan Green. “Her track record, the songwriters and artists she has worked with speak for themselves, showcasing her immense and relentless dedication for music creators,” said Ventura, who is also SMP UK’s president and svp of international.
Nashville-based record label New West Records promoted Tommy Robinson to general manager and vp of sales, while Brady Block was boosted to senior vp of media and reissues producer. Katie Keller has been upped to vp of project management, while Meg Barron rises to director of A&R and publishing. Brooke Nixon joins as vp of digital marketing, following a role as director of streaming at Big Machine Label Group imprint The Valory Music Co. New West’s current roster includes Aaron Lee Tasjan, 49 Winchester, Ben Folds, American Aquarium and more. –Jessica Nicholson
Universal Music Finland appointed veteran executive Petri Mannonen to CEO, effective immediately. Mannonen joined UMG in 2010 as a commercial director and in 2017 expanded his responsibilities to include overseeing operations in the Baltics (Estonia, Latvia, and Lithuania). Prior to Universal, he was CEO of Viasat Finland (now Viaplay), a pay television company. The UMF roster includes KUUMAA, Mirella and Robin Packale, among others. “The Finnish music market is in a really interesting situation at the moment,” said Mannonen. “Music is now easier to release than ever, and as the selection grows, the role of major record labels is also emphasized. Our job is to focus on building long-term artist careers while taking care of artists. We want to offer our current and future artists a creative and professional place to grow and develop while making sure that their music reaches the right audiences.”
FUGA, the Downtown-owned B2B music distributor, promoted Renato Vanzella to general manager of LATAM, expanding his previous role as GM of Brazil to oversee operations in Argentina, Brazil, Colombia and Mexico. Vanzella will focus on business development, client relations, and partnerships with DSPs, reporting to Sarah Landy, the senior vp for the Americas. Since joining FUGA in 2019, Vanzella has significantly grown the team and secured key clients, including Elemess, MJC Music, Beeside Records, and Radar Records. Landy praised Renato Vanzella’s promotion, highlighting his “exceptional strategic vision and leadership” over the years. “Renato consistently has demonstrated a deep understanding of the local music landscape, and his passion for collaboration and client service has earned him the respect of our team and our partners,” she said.
Armada Music appointed Susanne Hazendonk as head of catalog, bringing over 15 years of industry experience from Spinnin’ Records and Warner Music Benelux. Having worked with top dance artists such as Lucas & Steve, Sam Feldt and Afrojack, as well as hitmakers like Bruno Mars and The Red Hot Chili Peppers, Hazendonk is well-versed in both dance music and big ol’ hits. She’ll report directly to COO Jop Bonnike, leading marketing and storytelling efforts and overseeing the expansion of Armada’s catalog department and acquisitions through the BEAT Music Fund. Bonnike praise Hazendonk’s “unwavering passion and infectious enthusiasm for dance music, adding, “As we continue to prioritize the growth and evolution of our catalog department, we’re looking forward to working alongside Susanne to seize new opportunities in the market.”
Big Loud Rock added Zach Siegal-Eisman as vice president of digital and viral marketing, overseeing the imprint’s digital marketing strategy and execution, as well as artist growth and digital presence of both upcoming and catalog record releases. Earlier this year, Siegal-Eisman launched the marketing consultancy Amplify Legacy and previously worked at social media agency Crowd Surf and at Artist Network Management. –J.N.
BOARD SHORTS: The Music Managers Forum appointed Niamh Byrne as chair and Jill Hollywood as vice chair, succeeding Paul Craig and Kwame Kwaten, respectively, who recently stepped down after serving two three-year terms. Byrne, co-founder of Eleven Management, has made a mark with artists including Damon Albarn, Blur and Gorillaz. She brings a wealth of experience, having held roles at Universal Music UK and her consultancy firm The Engine Room. Hollywood, founder of Echo Beach Management, has managed both legendary producers and emerging talents, including current roster Jacknife Lee, Ash Howes and Ash Workman. Hollywood previously spent over a decade at Big Life Management. MMF also said that Theory Management’s Hide Whone is joining the board, replacing Clare Wright … Newport Folk launched the Newport Folk Stewardship Program, designed to recognize individuals who have significantly contributed to Newport’s legacy and challenge the “Folk Family” to innovate for the future. The first appointee is St. Louis-born Americana artist Nathaniel Rateliff, who’ll focus on artist advocacy, mentorship and fellowship, both within the Newport Folk community and beyond. He’ll serve a three-year term, with two years as an active steward and one as an advisor to his successor.
Nettwerk welcomed Ruth Wyatt as director of sync for UK and Europe, bringing her experience from Warner Music UK, where she successfully placed artists in various sync opportunities. Her notable achievements include Sam Ryder’s “Christmas To Me.” Wyatt said she’s looking forward to helping Network build out its sync opportunities across the UK and Europe, adding, “It’s never been a more exciting time to be in the sync space, with more productions being made than ever before and we’re witnessing breakout productions from the Nordics, Spain, Germany, France Australia, all of which are attracting overwhelmingly international audiences, subsequently creating global impact for our artists.” Nettwerk co-founder Mark Jowett, said Wyatt’s “expertise in achieving syncs is matched only by her passion for supporting great music and artists.”
Alphabeats, a startup using music and neurofeedback tech to help athletes improve mental acuity, announced that chief commercial officer and U.S. president Jorrit DeVries will assume the role of global CEO. Current chief Han Dirkx, one of alphabeats’ three co-founders along with DeVries, will move into the role of chief operating officer and lead the company’s product, research and development, and technology teams based in The Netherlands. As U.S. president, DeVries has overseen sales, marketing, product development and fundraising. Prior to joining alphabeats, he was global head of category development at Spotify, and he has also held senior roles at Samsung, Vodafone and Warner Music, leading teams in the U.S. and Europe.
ICYMI:
Jeremy Erlich
Verve Label Group promoted Jamie Krents to CEO and president, and Dawn Olejar to chief operating officer … Harvey Mason Jr. isn’t going anywhere … Republic appointed Mary Catherine Kinney as executive vp of artist & label strategy … Alicia Arauzo and Luis Fernández are the new co-managing directors of Universal Music Spain … Jeremy Erlich will be leaving his position as Spotify’s global head of music … and Narcís Rebollo has been appointed CEO and president of UMG’s spun-out Global Talent Services. [MORE]
Last Week’s Turntable: An Old Friend Returns to Budd
LEVEL, a distribution company owned by Warner Music Group, announced on Thursday (Sept. 26) via Instagram that it will be shutting down in 2025. In a letter to its clients, obtained by Billboard, LEVEL notes that it is no longer accepting new songs for distribution or edits as of the date of the announcement and it will cease all operations on July 31, 2025.
The letter also said that all live releases will automatically be taken down on Nov. 18, but artists are “welcome to request a takedown” of their content before then. It also notes that access to the LEVEL Wallet, which is how the company pays out royalties, will be shut down on July 11. “We’re honored to have supported all of the talented people who have used LEVEL to share their music with the world over the years,” the company said.
In a statement provided to Billboard, WMG said: “We’re focusing all of our efforts behind the ADA brand, as we continue to strengthen our global suite of services for artists and label partners across the independent community. We’re taking a truly global approach, and investing in our team and technology, with some exciting announcements in the works.”
Trending on Billboard
In late 2022, multiple LEVEL artists and former employees told Billboard that the company was experiencing operational issues. This included the random removal of artists’ songs and projects distributed through the company and increasing difficulty in getting in touch with staff to remedy the takedowns and to generally receive service. Two former employees believed at the time that this was due to a reduced headcount at the company. A number of artists also took to the company’s Instagram comment sections to voice their concerns about the company. Those comments have all since been deleted.
In January 2023, the company addressed these complaints in an Instagram post, saying, “when it comes to customer support, we acknowledge we need improvement… we are refining our process for how we approach withdrawals [as well].”
LEVEL was started in 2018 by WMG in an effort to work more closely with young, unsigned artists. During the course of its operations, it released early songs by Remi Wolf, Stephen Sanchez, brakence, Dreamer Isioma, Boyish and more.
News of LEVEL’s shut down comes amid a widespread restructure of WMG’s Atlantic Music Group, which includes Atlantic Records, Elektra Records 300 Entertainment, Fueled by Ramen, Roadrunner and 10K Projects. Over the last few weeks, around 150 employees under the Atlantic Music Group umbrella have been let go, and a number of high-profile executives are also stepping down from the company, including Atlantic Music Group CEO Julie Greenwald, who co-led Atlantic for nearly 20 years; WMG’s CEO of recorded music Max Lousada, who had been at WMG for decades; 300 Elektra Entertainment chairman/CEO Kevin Liles; Atlantic general manager Paul Sinclair; and Atlantic co-president of Black music Michael Kyser, along with several department heads at both Atlantic and Elektra Records.
Atlantic Music Group will now be helmed by 10K Projects founder/CEO Elliot Grainge.
Blake Shelton and his longtime label home of two decades, Warner Music Nashville, have parted ways. Beginning with his 2001 debut, five-week No. 1 Country Airplay single “Austin,” Oklahoma native Shelton has gone on to notch 28 No. 1 Country Airplay hits, including “All About Tonight,” “Honey Bee” and “Some Beach.” He’s won 10 CMA […]
Warner Music Group said on Thursday that revenues increased 7% during its fiscal second quarter to $1.5 billion, with the company pointing to the strength of its publishing business and a boost in subscription streaming revenue in recorded music.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Hits like Teddy Swims‘ “Lose Control” and Benson Boone’s “Beautiful Things” drove an 11% increase in recorded music streaming revenue, including a 13% uptick in subscription streaming revenue. Swims and Boone held the No. 1 and 2 spots on the Billboard Hot 100 songs chart in the first quarter, while Megan Thee Stallion‘s “Hiss” debuted in the No. 1 spot in February.
“This quarter, we saw massive hits from artists across different genres and all stages of development – exactly the kind of mix we want,” said WMG CEO Robert Kyncl on a call with investors. “[The increase in streaming revenue] was driven by stronger music performance as well as subscriber growth and subscription price increases.”
Trending on Billboard
Recorded music revenue grew by 4% to $1.19 billion overall in the quarter compared to a year ago, as the termination of Warner’s distribution agreement with BMG was a drag on the division’s streaming and digital revenue growth and made for a challenging year-ago comparison. Excluding the impact of BMG terminating its distribution agreement and not renewing its digital license deal with WMG, total revenues were up 8.8%.
Music publishing revenue grew by 19% to $306 million as WMG songwriters’ contributions to hits like Jack Harlow’s “Lovin On Me,” Ariana Grande’s “We Can’t Be Friends” and Kanye West and Ty Dolla $ign’s “Carnival” drove a more than 30% uptick in music publishing streaming revenue.
Kyncl said Warner’s growing global market share in music publishing was thanks to organic growth — like signing decorated British singer/songwriter Raye early in her career. But it was the company’s inorganic growth plans that generated the first question from analysts on the company’s earnings conference call.
In April, WMG called off plans to submit a binding offer to acquire French music company Believe.
“We decided not to pursue it for a variety of reasons that I cannot go into,” Kyncl said in response to an analyst’s question about the decision. “We have a clear strategy in expanding our offerings to serve more artists across a wider array of their careers. We are building against that … We always look at ways to accelerate beause all of this work takes time. Any time there is an option in the market to accelerate our roadmaps, we will look at it.”
Ultimately, the acquisition and bidding process for Believe pushed Warner to disclose publicly it was considering making an offer, but the time WMG had to conduct due dilligence was brief and “not in our control,” Kyncl said, which also played a part in WMG walking away.
The company is “staying vigilant about M&A opportunities” that could enhance it’s goal of providing “lower-touch services that many independent artists, labels and songwriters rely on.”
Warner Chappell announced a partnership with BandLab and its artist service platform ReverbNation that aims to provide administration and a full-service JV tier to develop BandLab’s most promising writers.
A former YouTube executive and advocate for technology and music, Kyncl ended the call with a plug for “Where That Came From,” an AI-generated song by Grammy-award winning country star Randy Travis. Travis has suffered from aphasia since 2013, limiting his ability to sing. That he was able to release new music for the first time in years last week, was “a wonderful example of what is possible with AI,” Kyncl said.
Warner Music Group announced over the weekend that it has called off plans to submit a binding offer to acquire French music company Believe. The label did not elaborate on its decision, only that it was made “after careful consideration.” Believe followed up in a statement, saying it will “review the situation with all interested […]