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Warner Music Group reported quarterly revenue edged nearly 1% lower and net income was down almost 63% for the start of the year, as the label home of stars like Bruno Mars and Lady Gaga struggled with tough comparisons to last year’s quarter.
WMG reported overall revenue of $1.48 billion and recorded music revenue of $1.175 billion, a 1% decline, for the fiscal second quarter, which ended March 31, compared to a year ago. Publishing revenue rose 1% to $310 million. Net income was $36 million compared to $96 million a year ago, due to lower recorded music revenue, a $34-million loss due to exchange rates costing the company more on its euro-denominated loans and an $11 million increase in a certain kind of taxes.
Total digital revenue slipped 1% with streaming revenue roughly flat, which reflects the comparison to last year’s boon quarter, a lighter release slate and market share loss in China.
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WMG CEO Robert Kyncl says these results belie the green shoots showing from company’s cost-cutting and new releases strategy, which he says results in their growing market share of new releases. Songs performed by WMG artists like Mars, Billie Eilish, Benson Boone and Teddy Swims currently claim half of the spots atop Billboard’s Global 200 chart.
“Our strategy is starting to bear fruit, with our strongest chart presence in two years … As a result, our true strength this quarter was partially obscured by challenging comparisons with last year’s outperformance,” Kyncl said in a statement, referring in part to last year’s 13.5% subscription streaming growth. “As we replicate our strategy across other labels and geographies, and drive a virtuous cycle of greater reinvestment, we expect to deliver lasting value for artists and songwriters, and sustained growth and profitability for shareholders.”
Adjusted operating income before depreciation and amortization (OIBDA) declined 3% to $303 million, and adjusted OIBDA margin decreased half a percentage point to 20.4%.
Because it earns more than half of its income from outside of the United States, WMG releases earnings on constant currency basis — a method that updates last year’s revenue and other line items using this year’s foreign exchange rates.
On a constant currency basis, overall quarterly revenue rose 1% — though recorded music and publishing both still declined by 2% and 5% respectively — and adjusted OIBDA declined by 1%.
Warner Music Group has announced the beta launch of WMG Pulse, a new bespoke platform designed to provide artists and songwriters with helpful insights into their streaming performance, fan engagement and even earnings.
The label said WMG Pulse will consolidate real-time data from various sources into a single view, offering detailed information on streaming, audience, social media and user-generated content (UGC) performance. Additionally, Pulse provides an up-to-date snapshot of an artist’s earnings across royalties, physical sales, sync deals and more.
The platform aims to support artists and songwriters at all stages of their careers, whether they are managing a diverse catalog or striving to achieve their first major hit. Currently, WMG Pulse is in beta testing with over 100 WMG artists and songwriters, who will provide feedback to developers. In the coming months, WMG Pulse will incorporate features such as forecasting, release planning and collaboration tools based on that input from beta testers.
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For now, Pulse will complement WMG’s other analytics tools, one being AMP, which is designed for artists and managers. According to a WMG spokesperson, the in-house created Pulse offers significantly more data and insights than the other tools, although it does incorporate some of the best features from them. As Pulse evolves and adds new functionalities — and exits its Beta phase — it is expected to eventually become the label’s comprehensive locale for all artist analytics needs.
The platform is currently available to a limited group of WMG artists and songwriters and will be widely rolled out later this year.
Ariel Bardin, president of technology at WMG, emphasized the platform’s role in providing greater transparency across the music ecosystem, “including data from every major streaming and social media platform,” adding, “the app offers a seamless, easy to use experience, giving deeper insights into careers and fan bases, with even more sophisticated updates still to come. It’s about empowering artists and songwriters with clarity, and helping them make smarter, data-driven decisions with their teams.”
Other major label platforms offering real-time insights for artists include UMG’s Universal Music Artists and Sony Music’s Real-Time Insights, among others.
Warner Music Group has filed a lawsuit against Crumbl, the Utah-based cookie company, for copyright infringement. The lawsuit, filed on April 22 in the U.S. District Court for the District of Utah, accuses Crumbl of using WMG’s copyrighted sound recordings and musical compositions in its social media marketing campaigns without proper licenses.
Crumbl has built its brand primarily through social media platforms like TikTok and Instagram, often featuring popular music tracks in its promotional content. WMG claims that Crumbl has misappropriated at least 159 sound recordings and musical compositions in its videos. These tracks, which include works by artists such as Lizzo, Mariah Carey, Ariana Grande and Beyoncé, are said to be key to Crumbl’s marketing strategy. Many of these videos rely heavily on music, with little to no dialogue, highlighting the central role of the unlicensed tracks in Crumbl’s advertising efforts.
WMG’s complaint provides several examples of this alleged misappropriation. For instance, Crumbl’s TikTok video promoting its blueberry cheesecake features the unauthorized use of “Blueberry Faygo” by Lil Mosey, the label said. Another video promoting Crumbl’s yellow sugar cookie, while also advertising the film Minions: The Rise of Gru, uses Coldplay’s “Yellow” without permission. A video promoting a butter cake cookie features — you guessed it — BTS’ “Butter.” Additionally, there’s a video featuring Crumbl employees dancing to K CAMP’s “Lottery (Renegade),” and Crumbl even referenced music used in some videos, such as a TikTok post featuring Lizzo’s “Juice,” with the caption repeating the song’s lyrics.
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Other songs that WMG contends were infringed upon by Crumbl include Beyoncé’s “Single Ladies (Put a Ring on It),” Bruno Mars’ “Locked Out of Heaven,” Dua Lipa’s “Levitating,” George Michael’s “Careless Whisper,” Gwen Stefani’s “Holdback Girl,” Gotye’s “Somebody That I Used to Know,” Taylor Swift’s “All Too Well,” Miley Cyrus’ “Party in the U.S.A.,” Missy Elliott’s “Get Ur Freak On,” Mariah Carey’s “Fantasy” and dozens more.
WMG asserts that Crumbl’s actions constitute direct, contributory and vicarious copyright infringement. The plaintiffs argue that Crumbl, which has over a thousand stores nationwide and is reportedly exploring a sale, according to Reuters, should have been aware of the need to secure licenses for the music used in its promotional materials. Despite this, Crumbl allegedly persisted in using WMG’s music without authorization, even after similar cases, including separate lawsuits against Bang Energy by Universal Music Group and Sony Music Entertainment, brought attention to the overarching issue.
The lawsuit seeks a jury trial and a permanent injunction to prevent Crumbl from any further infringement. The company is also pursuing statutory damages of up to $150,000 for each infringed work, potentially totaling nearly $24 million if the court awards the maximum penalty for all 159 cited works.
This legal action underscores the music industry’s ongoing efforts to protect intellectual property rights in the digital age, particularly as brands increasingly leverage popular music in social media marketing. The outcome of this case could have broader implications for how companies approach the use of copyrighted music in online promotions.
WMG is being represented by Sidley Austin LLP and Workman Nydegger.
Crumbl has not responded to Billboard‘s request for comment on WMG’s lawsuit.
It’s time to drop the needle on another Executive Turntable, Billboard’s weekly compendium of promotions, hirings, exits and firings — and all things in between — across the music business. There’s been a fair share of news this week, so let’s get cracking.
Sony Music Entertainment named Kevin Foo as managing director for Southeast Asia, overseeing operations in the Philippines, Indonesia and Thailand, effective immediately. Based in Singapore, Foo will lead efforts to expand SME’s presence in these rapidly growing music markets, focusing on artist development and audience engagement. He will report to Shridhar Subramaniam, president of Asia and Middle East, and manage a squad including general managers and a vp of international marketing for Southeast Asia. Foo brings a strong track record, having previously served as MD of RCA Records Greater China and GM of SME Taiwan. During the Covid-19 pandemic, he led a cross-border collaboration supporting Taiwanese artist Eric Chou’s charity initiative. Prior to joining the Sony family in 2022, Foo co-founded Umami Records, ran Beep Studios, managed artists through Foundation Music, and did some consulting for UMG. His appointment signals SME’s commitment to growth of local genres like P-pop and T-pop. “Kevin has a unique ability to connect artists, markets, and audiences in ways that drive both commercial and cultural impact,” said Subramaniam. “His deep understanding of the region, coupled with his passion for artist development, makes him an ideal leader to shape the next phase of our Southeast Asia strategy.”
Island Records elevated Matt Palazzolo from vp to senior vp and head of analytics at the UMG imprint. Based in New York, he’ll report directly to co-chairmen and CEOs Imran Majid and Justin Eshak. In his new role, Palazzolo will continue to enhance the label’s data capabilities and provide action-oriented insights to the organization, management partners and artists. Since joining Island in 2022 after a lengthy stint at Sony Music Publishing, Palazzolo and his team have excelled in using insights to support artist development. Eshak praised Palazzolo as “key to our culture of learning” at the label, adding, “he also has a real understanding of music and culture that’s indispensable to the delicate process of combining art and analytics.” Majid emphasized Palazzolo’s skill in integrating analytics into the label’s “DNA… He has an incredible ability to attune to what each department is doing and add value by way of his intensive and comprehensive research.”
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Big Machine Label Group hired Chris Koon as executive vice president of finance. Koon will report directly to BMLG president Andrew Kautz and HYBE America CFO Eric Holden. Koon has over three decades of financial experience across recorded music, distribution and publishing operations, holding financial leadership positions at Universal Music Group/Capitol CMG, managing business acquisitions and integrations. –Jessica Nicholson
Marc Eckō
Complex founder Marc Eckō is returning as chief creative and innovation officer, overseeing creative strategy and integrating technologies like artificial intelligence to boost audience engagement. Eckō founded Complex magazine in 2002, transforming how youth culture and streetwear are covered in media. Before Complex, he pioneered Eckō UNLTD., blending music and design. Complex, acquired by NTWRK in 2024 with strategic investment from UMG, Jimmy Iovine, Goldman Sachs and Main Street advisors, has expanded into e-commerce, revived its print magazine, and globally expanded ComplexCon. Additionally, Ray Elias joined as chief marketing officer, leading brand, growth and communications. Elias, with over 25 years of experience, has held pivotal roles at high-growth startups and market-leading brands, including CMO at HotelTonight and StubHub, driving significant business growth and industry disruption.
Smith Entertainment Law Group (SELG), known for its expertise in production counsel for awards shows, series, films, documentaries, and live events, named Lynn Elliot, Esq. as senior counsel. Based in NYC, Elliot brings extensive experience in film, television, music, live events, and new media, having worked on projects like Precious, Alive Inside, and The Rachel Zoe Project. Her clients include producers, writers, directors, musicians, and event promoters. Previously, she served as Associate General Counsel at Dayglo Presents, handling legal matters for ventures like Brooklyn Bowl and Relix Magazine. At SELG, Elliot will lead deal structuring, risk assessment, employment transactions, and business operations support. With a background in film, TV writing, and clinical psychology, she offers a unique blend of creative and legal insight. Kerry Smith, founder and managing partner of SELG, praised Elliot’s breadth of experience and noted “her passion for supporting creative visionaries will further elevate the comprehensive services we offer to our clients.”
Warner Music Nashville promoted Katherine Firsching to director of commercial partnerships and Blair Poirier to manager of commercial partnerships. Both will report to Kristen Williams, svp of radio and commercial partnerships. Firsching, who joined WMG in 2020 as an interactive marketing coordinator, later became manager of video strategy. Poirier joined WMG in 2022 as commercial partnerships coordinator after working at Pierce Public Relations. Williams praised Firsching’s ability to build relationships with partners and artists, highlighting her “driving spirit to learn and win,” while commending Poirier’s skills in DSP account management and her ability to manage workloads “while also building fantastic relationships with our premiere DSP accounts.” They can be reached at katherine.firsching@wmg.com and/or blair.poirier@wmg.com.
Berklee appointed Edward J. Lewis III as senior vp of institutional advancement, effective May 15, a role in which he’ll work with Berklee’s top leadership to drive global fundraising and engagement initiatives. Lewis brings over 20 years of experience in higher education and the performing arts, with expertise in fundraising and strategic planning. Previously, Lewis was president and CEO of the Caramoor Center for music and the arts, where he launched its first major gifts program and advanced diversity and inclusion efforts. As vice chancellor for advancement at the University of North Carolina School of the Arts, he led a $75 million fundraising campaign and doubled the school’s endowment. A professional violist, Lewis also held development roles at the University of Maryland. “[Lewis’] extensive leadership and fundraising expertise, coupled with his community-focused approach, will help us realize our ambitious institutional advancement priorities across our campuses,” said president Jim Lucchese.
5B Artist Management announced internal promotions and the launch of its new creative and marketing agency, Pink Motel. Brad Fuhrman has been promoted to senior vp, managing artists like Lamb of God, BABYMETAL and Stone Sour. Lindsey Medina joins as senior manager of business development, bringing experience from Danny Wimmer Presents and Live Nation. In the UK, Adam Foster has been promoted to general manager, working with acts such as Behemoth and Slaughter to Prevail. Pink Motel, led by Stephen Reeder and Audrey Flynn, will focus on music marketing, brand campaigns and digital strategy. The agency already partners with top clients including Sony, BMG and Live Nation, while Reeder and Flynn continue their roles at 5B.
Jay Ahmed has been promoted to head of promotions at London-based promo agency Your Army, where he’ll lead the DJ, UK Radio, international radio and third party playlist departments. Having joined the company seven years ago as a national radio plugger, Ahmed has played a key role in successful campaigns for artists like BICEP, Barry Can’t Swim, Sub Focus, A Little Sound, salute, LF SYSTEM and KILIMANJARO. In his new position, he will oversee all promotional operations, develop global strategies and strengthen ties with media, artist management and label partners. Ahmed expressed gratitude for the opportunity and praised the Your Army team and artist roster, stating his excitement for what lies ahead in his expanded role.
ICYMI:
Armin Zerza
EMPIRE Publishing appointed producer !llmind as senior vp of A&R. Additionally, Al “Butter” McLean was elevated to executive vp of global creative, continuing to co-lead EP with Vinny Kumar … Opry Entertainment Group named Tim Jorgensen as vp of operations for its Austin team, overseeing ACL Live, 3TEN and W Austin … Warner Music Group hired Armin Zerza as evp and chief financial officer, effective May 5, bringing extensive leadership experience from his previous role as CFO of Activision Blizzard. [Keep Reading]
Last Week’s Turntable: Orchard Veteran Breaks Out on His Own
Warner Music Group announced on Monday (April 14) that Armin Zerza will join the company as executive vice president and chief financial officer, effective May 5, reporting to CEO Robert Kyncl. Zerza, who previously served as CFO of Activision Blizzard, brings extensive global financial, commercial and operational leadership experience.
Bryan Castellani, the current executive vp and CFO, will serve until May 5 and then act as an advisor to ensure a smooth transition.
Armin Zerza
Zerza has three decades of experience across the entertainment, technology and consumer goods sectors. At Activision Blizzard, the game publisher behind Call of Duty and Tony Hawk’s Pro Skater, he held roles as CFO and chief commercial officer, playing a pivotal role in the company’s acquisition by Microsoft. Before joining Activision Blizzard in August 2015, Zerza spent over 20 years at Procter & Gamble, serving in various senior leadership roles across North America, Europe and Latin America. He managed multibillion-dollar businesses such as P&G’s European Baby Care and Latin America divisions and was part of the global M&A team.
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CEO Robert Kyncl praised Zerza’s 30 years of global experience and his track record of delivering results through innovation and financial discipline, adding, “He’ll help us evolve our long-term strategy and build WMG for the lasting benefit of our artists, songwriters, investors, employees, and partners.”
“I am thrilled to join WMG, a dynamic and innovative leader in the music industry,” said Zerza. “I believe the business has tremendous potential and look forward to working closely with Robert and the talented team at WMG to help deliver its ambitious vision for innovation, growth, and long-term value creation.”
Castellani joined WMG in August 2023 after nearly 30 years at The Walt Disney Company, rising to CFO for Disney Entertainment & ESPN. Prior to that, he held such roles as evp of finance for Disney Media, where he oversaw its distribution, ad sales and networks businesses, and previously he was evp and CFO of ESPN proper. Castellani succeeded longtime CFO Eric Levin.
“It’s been a rewarding experience to contribute to the ongoing evolution of this great company,” he said. “There’s so much we achieved at a pivotal time for the industry. I thank Robert, the Board of Directors, and everyone at WMG, especially the global finance team.”
Warner Music’s independent music distribution and artist services arm, ADA, has partnered with Three Six Zero Recordings to handle global distribution for all new releases from the label, the companies announced on Monday that (Feb. 24). Three Six Zero Recordings represents multi-platinum acts like WILLOW, Jaden and The Prodigy, as well as artists such as […]
Warner Music Group announced changes to its division overseeing Argentina and Chile on Tuesday (Feb. 11), bringing in Tomás Talarico as the new managing director of Warner Music Southern Cone (née Cono Sur), effective immediately. He succeeds Guillermo Castellani, who will stay on as a consultant during the transition. Talarico will report to Alejandro Duque, president of Warner Music Latin America.
Talarico brings extensive industry experience, having founded MOJO, an independent record label and digital distributor, in 2014. Under his leadership, MOJO expanded across Argentina, Chile and Peru, becoming a key player in the tropical and urban music markets. The company has collaborated with approximately 150 artists and labels, managing audiovisual production and music publishing. According to the hiring announcement, MOJO’s success includes more than 50 Gold and Platinum certified singles and multiple industry awards, including eight Gardel Awards and two Pulsar Awards.
Throughout his career, Talarico has played a significant role in developing emerging artists such as ECKO, Grupo Zumbale Primo, Kaleb Di Masi, Papichamp and Uriel Lozano, among others. He was also a key contributor to the collaborative project Un Poco de Ruido. He’s also a musician, having released five rock and pop albums as a guitarist and singer-songwriter.
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Before founding MOJO, Talarico was a pioneer in digital music distribution, working with companies focused on MP3 and ringtone sales. His early career included a role as a supervisor at Tower Records.
Duque praised Talarico’s entrepreneurial mindset and ability to bridge music and technology “to the service of artists,” also praising Castellani role in developing the careers of major Warner artists such as Maria Becerra and Tiago PZK.
Talarico expressed excitement about joining WMG, highlighting the opportunity to utilize the resources of an international label to support the region.
“To be able to tap into the resources of a major label to superserve the exceptional talent in this region is an incredible opportunity,” he said. “I also want to pay tribute to the remarkable Guillermo Castellani who has nurtured such a strong team and played a huge role in the wider music industry. He leaves big shoes to fill, and I’m looking forward to building on his legacy!”
Castellani reflected on his time at Warner Music, which dates back to early 2002, and lauded the support of Duque and the Warner Music Southern Cone team.
“I am grateful to the family of Warner Music Southern Cone for allowing me to enjoy my work every day: without them it would have been impossible to reach the goals we achieved,” he said. “I wish Tomás success in writing the following chapter in the Southern Cone. I am sure that he will lead Warner Music in its continuous growth so that it will remain a magnet for new music talent in this part of the world.”
Warner Music Group has expanded its corporate development team by appointing Alfonso Perez-Soto as executive vp of corporate development, focusing on recorded music, and Michael LoBiondo as senior vp of corporate development, focusing on publishing. Both will report to Michael Ryan Southern, executive vp and chief corporate development officer, who has led WMG’s global M&A activities since August.
The company said this new structure provides WMG with dedicated dealmakers for each side of the business, enabling targeted investments and acquisitions across music rights and technology. Due to this reset, the leaders of Warner Music’s Emerging Markets territories, who previously reported to Perez-Soto, will now report directly to Simon Robson, president of Europe, the Middle East and Africa, recorded music.
Perez-Soto has spent much of the last two decades at Warner Music, having joined the company in 2005 as vp of business development for Latin America and US Hispanic markets. He was bumped up to senior vp in 2012 and in 2017 originated the position of senior vp, global business development and chief commercial officer, emerging markets. A year later he was elevated once again to executive vp of Eastern Europe, Middle East and Africa, and in 2021 was promoted to president of emerging markets. In that role, he has designed and implemented a growth strategy based on M&A, geographical expansion and organic artistic success that significantly expanded Warner’s footprint in these emerging territories. Earlier in his career, Perez-Soto held stints at Telefonica, Universal Music Group and Nokia.
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LoBiondo has been serving as head of business development for Warner Chappell Music, WMG’s music publishing arm, since 2021. In this role, he’ ha’s been responsible for identifying and executing strategic acquisitions and partnerships to benefit the publisher’s frontline songwriters and its iconic song catalog. Prior to this, he held various positions at WMG, where he had a hand in numerous major initiatives, including the acquisition of Parlophone Label Group and several Series A music technology investments. Between his tenures at Warner, LoBiondo worked at the artist development company mtheory. He began his career as an analyst at Goldman Sachs.
Southern expressed confidence in Perez-Soto and LoBiondo, calling them “tenacious and curious leaders with a deep understanding of the music industry and its key players… We’ve committed to grow WMG through a mixture of organic and M&A activity. Now we’ve got a dedicated dealmaking beacon for each set of rights that’ll enable us to continue to improve our service to artists and songwriters.”
What a difference a year can make.
Warner Music Group said on Thursday that revenue from its first fiscal quarter fell 5% to $1.67 billion from a year ago, as the company suffered tough comparisons to a period last year when it still had BMG as a physical and digital distribution client and enjoyed a $30-million boon from a digital licensing renewal deal.
But the third-biggest major music company also showed that the deep staffing cuts and wind-down of certain businesses over 2024 freed up money for investment — such as the $450-million acquisition of Tempo Music‘s catalog — and growth, like Atlantic’s half-a-percentage point market share expansion.
WMG’s quarterly results — which included a nearly 40% decrease in operating income and $27 million in restructuring costs and impairment charges — depict a company deep in transformation. Chief executive Robert Kyncl is trying to increase efficiency in legacy businesses and technology, while standardizing its sprawling global network, and striking more lucrative deals with streaming platforms.
Recorded music revenue in the first fiscal quarter, which ended Dec. 31, 2024, fell 7% to $1.35 billion from last year’s quarter, as BMG’s termination of its distribution deal created a $32 million drag (evenly split between streaming and physical revenue). Last year’s quarter also included the extension of one artist’s licensing agreement worth $75 million, and the $30-million renewal of a digital partner’s license.
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WMG says if you strip those three things out, total revenue rose 3.4%.
Overall, digital revenue and streaming revenue each fell by around 2%.
Adjusted operating income before depreciation and amortization (adjusted OIBDA)–which measures the profitability of a company’s core businesses–fell 19.5% to $363 million, and adjusted OIBDA margin fell to 21.8% from 25.8% in the prior-year quarter. If you take out the negative impacts of the licensing agreement and digital partner renewal, the company said its adjusted OIBDA fell by just 0.3% and adjusted OIBDA margin decreased 0.8 percentage point.
The company said adjusted OIBDA margin was also dragged down by the 8% rise in the value of the U.S. dollar since last year’s presidential election. (Almost 60% of Warner’s income is earned in euros and other currencies that trade against the dollar, according to the company.)
“All of these impacts will stabilize over time,” Kyncl said on a call with analysts discussing the earnings. “We’re confident about the future. Our goals are clear: increase our share of the pie, meaning market share; grow the pie itself by increasing the value of music; and become more efficient, providing greater cash flow, both for re-investment and for shareholder return.”
The company’s net income was up nearly 25% to $241 million, boosted by foreign exchange hedging activity and the sale of a $29-million of an investment. Free cash flow was up 12% to $296 million.
Other highlights from the company’s earnings and conference call:
» Within Recorded Music, digital and streaming revenue both fell by 3.9% and 3.7%, which reflects a 2% decline in subscription revenue and an 8.2%-decline in ad-supported revenue. If you strip out BMG’s termination and the digital partner’s license renewal, the company says recorded music streaming revenue was up 1.5% and subscription revenue increased 5.3%, while ad-supported revenue still fell by 7.9%. Nonetheless, physical revenue rose 7.8% thanks to the strength of releases by Linkin Park, Charli XCX, Teddy Swims, Mariya Takeuchi and Benson Boone.
» Music publishing revenue rose 6.3% to $323 million from growth in digital, performance and other revenue, partially offset by lower mechanical revenue.
» Warner completed multi-year publishing and recorded music licensing deals with Amazon and Spotify over the past year, Kyncl said, though he declined to provide much detail. The deal with Spotify notably includes a new publishing agreement with a direct licensing model with Warner Chappell Music for the United States and several other countries. “There’s more work to do with others and for all of this to cycle through, but this is a really great step in the right direction.”
» Atlantic’s market share ticked half a percentage point up, a small win Kyncl attributed to the growing investments made in A&R last year. He said the investments came as a result of money left over after it made” organizational changes and investments into technology … [and] exited some non-core businesses.” Kyncl later said, “Our goal was to reinvest the majority of those savings into strategically important initiatives that will propel our business forward. This enabled us to increase our A&R investment by double-digits last year and this year.”
» Kyncl said buying Tempo is “a great example” of the company’s acquisition strategy. “As we become more efficient, we are creating a virtuous cycle that will enable greater reinvestment that delivers accelerated growth.”
Spotify and Warner Music Group have signed a new multi-year agreement covering both recorded music and music publishing, following Spotify’s similar deal with Universal Music Group earlier this year. The partnership, announced today (Feb. 6), aims to drive innovation and increase the value of music for artists, songwriters and fans.
The agreement focuses on advancing audio-visual streaming, expanding music and video catalogs, and, notably, introducing new paid subscription tiers with exclusive content bundles. It also reinforces “artist-centric” royalty models that reward artists for attracting and engaging audiences. Additionally, the new publishing deal introduces a direct licensing model with Warner Chappell Music in several countries, including the U.S.
In a statement, WMG CEO Robert Kyncl emphasized the collaboration’s role in expanding the music ecosystem and delivering value to artists and songwriters.
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“It’s a big step forward in our vision for greater alignment between rights holders and streaming services,” Kyncl said. “Together with Spotify, we look forward to increasing the value of music, as we drive growth, impact, and innovation.”
Spotify CEO Daniel Ek highlighted 2025 as a pivotal year for Spotify’s innovation, “and our partners at Warner Music Group share our commitment to rapid innovation and sustained investment in our leading music offerings. Together, we’re pushing the boundaries of what’s possible for audiences worldwide—making paid music subscriptions more appealing while supporting artists and songwriters alike.”
During Warner Music’s August 2024 earnings call, Kyncl addressed the relationship between labels and digital service providers and refuted the notion that they are entrenched adversaries. “I know that investor attention has recently been focused on the dynamics between labels and DSPs, with some speculating that we’re adversaries playing a zero-sum game,” he said. “That’s simply not the case. We’re actively engaged with our partners around ways to drive growth for all of us.”
WMG announced its new pact with Spotify moments before reporting results for is fiscal first quarter, which saw a dip in revenue that it attributed to the termination of its distribution agreement with BMG, among other factors. The label group on Thursday also announced that it had agreed to purchase a controlling stake in Tempo Music Investment, a catalog company that owns rights to songs by Wiz Khalifa, Florida Georgia Line and others, in a deal sources say is worth several hundred million dollars.