Warner Music Group’s Post

What actions are you taking now to set your business up for long-term success? In a New Year’s memo to staff, Warner Music Group chairman and CEO Robert Kyncl laid out his 10-year vision for the company, along with three key areas they need to focus on in 2024 to get there... ✅ Creating greater engagement with music, including expanding A&R efforts geographically and harnessing data to identify new opportunities. ✅ Increasing the value of artists and music by addressing streaming payments and royalty dilution, as well as looking for new ways to identify “super fans.” ✅ Changing the way teams operate, from increasing collaboration across people and teams to placing more emphasis on metrics. #businessplanning #musicindustrynews #management

Universal's Virgin Music Group, their global label initiative, has expanded its presence in China and India by acquiring Outdustry, an indie label that has a large presence in Eastern and Southern Asia, with staff, "located in Beijing, Kuala Lumpur, London, Los Angeles, Mumbai, Shanghai and Taipei." I think this article does a great job at explaining the partnership, and how both parties are going to benefit from the collaboration. What do you think of this acquisition? David Philp I think you'd find this interesting! #music #musicindustry #universalmusicgroup #outdustry

I often don't pay attention to the major labels but one of the majors, or mini-majors, I do pay attention to is Warner Music Group due to their focus and investment in developing in-house technology as they look to preparing their business for the future of the music industry. Their success or failure with actually accomplishing this with technology leading the way is their success or failure and by no means is it grantee but as a music company who leveraged vendor's technology for some of the most critical functions of their business it worth paying attention to their progress, successes and failures. The industry will continue to evolve in the digital realm and having an adaptable technology stack will be critical not only for WMG, but all involved in the business of music.

Universal Music Group (UMG) has struck a 10-year deal with HYBE, the South Korean entertainment powerhouse behind global sensation BTS. This exciting collaboration involves several key aspects. UMG will be investing in HYBE’s Weverse platform to foster a deeper connection between fans and artists, UMG will distribute HYBE’s music globally, and the two companies will join forces on marketing and promotion to propel HYBE’s artists to become more successful in North America. HYBE chairman Bang Si-Hyuk expresses his excitement about the collaboration, “We are certain that this will expand our global footprint, while benefiting our fans, artists, and labels.” It's a win-win for both companies, with UMG gaining access to a rapidly growing fanbase and HYBE leveraging UMG's global network to further solidify its artists' international presence. UMG continues to show that they are making an effort to strengthen the relationship between their artists and their fanbases. We're excited about this renewed focus on super fans and enhancing fan engagement across the music industry. Superfans play a crucial role in an artist's career, and with industry leaders like Hybe, UMG, and With the Band, there's a clear dedication to nurturing artist-fan relationships in today's music landscape. #musicindustry #musicbusiness #fandom #music #fanengagement

In a post-pandemic economy, the live-music industry has continued to display not only strong numbers in attendance, but also a continued fervor and interest from PE, showcasing a counterintuitive vitality in a cooling marketplace of rising interest rates 💹 The following report highlights an exciting acquisition of one of Europe's largest festival operators, Superstruct, by KKR (advised by Goldman Sachs) Key ideas 🌟 1. Fragmenting sectors of music consumption 2. Preference shift from "goods" to "experience"

As streaming growth is slowing, we're all talking about "monetizing the superfan". There's been enough written about it so I won't bother here. But I will say there are a mind-numbing number of startups trying to fill this void: We Are Giant, EVEN, Afterparty, Corite, Heir, KLEF, ampd.fm, DROPAUDIO, Fave, ArtistVerified, Loop, Offstage, Openstage, Rivet, Ampy, musical, MySeat Media Inc., sound.xyz, (and more still in stealth) are all building products or platforms around extracting more value from the most passionate of music fans. So it's not surprising that Warner Music Group, the most tech-literate of the three majors, is entering the space. If you're a major label you've dominated streaming, why would you ceed any ground in superfan monetization. #musicindustry #musicbusiness #musictech #musicstartups #superfans

Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind the music.  The tough news continues for the music industry as Warner Music announced that it will lay off 10% of its staff, or 600 people, in the coming weeks. The news comes in advance of the company’s earnings report tomorrow morning, and the company insists that the move is coming from a position of strength and that the savings will be reinvested in the company, following on CEO Robert Kyncl’s plans for the next 10 years.  We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024. I recognize this is unsettling news. To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication. We’re fortunate that you’ve been part of the team. We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.  As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices. We’re getting on the front foot to create a sustainable competitive advantage over the next decade. We’ll do so by increasing funding behind artists and songwriters, new skill sets, and tech, to help us deliver on our three strategic priorities:Grow the engagement with Music Increase the value of Music. Evolve how we work together.  Discovering and developing artists and songwriters is at the heart of everything we do. We’ll  turbocharge our efforts and investments, with additional focus on high growth geographies and vibrant genres, as well as using our data and insights to help original talents cut through the increasing noise, and taking a holistic global approach to maximizing the potential of their catalogs. Above all, we’re positioning ourselves to be first, to be different, and to be exceptional. I – and the entire leadership team – will be keeping you updated as we make progress. In May, we’ll hold our next All Hands meeting, which we’ll devote to our best new music, as well as our most promising projects.Thank you for your understanding, passion, and determination. We’re in an amazing industry, we’re partnered with many extraordinary artists and songwriters, and now is the time for us to pioneer the future.Warner Music 🎶 

BMG - The New Music Company’s parent company Bertelsmann has published its annual financial results for 2023 this morning, including figures for its music subsidiary. BMG’s revenues grew by 4.6% to €905m in 2023, with Bertelsmann saying that they were “positively impacted by, among other things, high investments in catalog acquisitions”. BMG’s Ebitda (earnings before interest, tax, depreciation and amortisation – its operating profit essentially) was €194m, down slightly from €195m in 2022. The report noted that BMG made 30 catalogue acquisitions in 2023 involving musicians ranging from The Hollies and Paul Simon to Jet, Snap! and Martin Solveig. The US accounted for 51.5% of BMG’s revenues last year (down slightly from 53.9% in 2022). There was a small but interesting shift in BMG’s revenue breakdown by category too. Turnover from rights and licences was 88.6% of its revenue in 2023 (down from 92.2% the previous year) while ‘own products and merchandise’ was 10.6% of its 2023 revenue (up from 7.5% in 2022). Read The Full Story Here: https://lnkd.in/da7VTR-r #BMG #MusicIndustry #Financials #musically #musicnews #readmore

The recent acquisition of a significant portion of Michael Jackson's music catalog by Sony Music Group is undoubtedly noteworthy. Jackson's musical legacy is undeniably iconic, and his catalog represents a valuable asset within the music industry. Traditionally, investing in established catalogs of renowned artists has been regarded as a wise strategy, offering stable returns that are often shielded from broader market fluctuations. However, in the current landscape, characterized by high interest rates, the appeal of such investments may be lessened. RIPE Capital focuses on emerging artists with high-performing tracks, offering double-digit returns to investors. This underscores the evolving nature of the music investment landscape, where superstar assets like Jackson's catalog coexist alongside newer opportunities that reflect shifting industry dynamics. https://lnkd.in/emAmz4Jc #musicroyalties #alternativeinvestments

“…Today (August 1 ), the company published a detailed explanation of HYBE 2.0, which it calls its new “strategic direction and business plan”. “In a letter to shareholders today, HYBE announced that “to ensure the competitiveness of our business portfolio in the medium- to long-term, we have decided to implement HYBE 2.0, a strategy that includes both business structure and governance transformation”. As part of the new HYBE 2.0 structure, it will launch a new division called HYBE MUSIC GROUP APAC, which oversees all of the company’s music label businesses based in Korea and Japan. HYBE has appointed Young Jae Shin as President of HYBE MUSIC GROUP APAC, effective, today. According to HYBE, Shin, who currently serves as President of BIGHIT MUSIC, “will advance the company’s multi-label system and ensure that HYBE’s music business is driven by a deeper understanding of our artists and fans”. “…In the US, the company says that HYBE AMERICA will launch a new label services business “that integrates the traditional management business in the US with HYBE’s expertise in operating online and offline performances, as well as distribution, promotion, and advertisement of albums”. HYBE says that this new service will provide a “comprehensive business model to support the artists’ growth beyond recording or management contracts”. The company told its shareholders today that it “identified a growing demand for change in the traditional business structure in the US market due to its fragmentation, complex contractual relationships, and simplified care for individual artists at larger labels”. Read the full article for more: #HYBE #KPop #Korea #Japan #USA #LatinAmerica #Artists #Talent #Weverse #Fandom #Fans #BTS #RecordingLabels #Global #Genres #JPop #Latin #LatinMusic #Technology #Tech #AI #ArtificialIntelligence #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz