Without Naming Spotify, Warner Music CEO Calls for Streaming Services to Raise Prices

Jem Aswad Senior Music Editor Oleg Stavitsky is co-founder and CEO of Endel, a sound wellness company that utilizes generative AI and science-backed research. Today, when the music industry cautiously expresses enthusiasm for AI, it focuses primarily on AI as a new tool that producers and artists can use in the studio. The rest of generative AI’s capabilities are seen as a threat, or as RIAA President Mitch Glazer put it in a recent op-ed, as “empty knock offs and chatbot impersonations,” from which true, human-made music must be protected.  Meanwhile, The U.S. Copyright Office has put forward new requirements when registering copyright for AI-generated content: they will consider the extent to which the human had creative control over the work’s expression and “actually formed” the traditional elements of authorship. Both perspectives draw a hard line between human creativity and AI activity, rather than looking at ways the two can collaborate and co-create. 

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.

Jem Aswad Senior Music Editor Warner Music Group will eliminate 270 positions as part of a wider evolution of the company, new CEO Robert Kyncl announced to the company’s staff in an email obtained by K In order “to take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve,” according to the memo. It was not immediately clear which positions or divisions will be affected. Warner is the world’s third-largest music company and includes the labels Atlantic, Warner, 300-Elektra, Parlophone, the reissue division Rhino and others, as well as Warner Chappell Music publishing. Kyncl was announced as the new CEO last September and in February took over for Steve Cooper, who left the company after 11 years. Kyncl, who for years had bridged the tech and entertainment worlds in major roles at Netflix — including overseeing the company’s shift to streaming — and YouTube, in which he was pivotal in repairing the streaming giant’s formerly contentious relationships with music companies. His unexpected move into the top position at Warner ushers in a new kind of tech-forward leadership at major labels.

Jem Aswad Senior Music Editor Warner Chappell Music has renewed its global publishing deal with producer Marco “MAG” Borrero. A frequent Bad Bunny collaborator, MAG produced 15 of the 23 tracks on the blockbuster album “Un Verano Sin Ti,” which led to his 2022 Variety Hitmakers honor and his No. 1 position on Billboard’s Year-End Hot Latin Song Producers chart. “Un Verano Sin Ti” became the first all-Spanish album to top the year-end Billboard 200 chart as well as earn a nomination for Album of the Year Grammy award. The Brooklyn-born, Puerto Rican-Dominican producer was mentored by Max Martin — the most successful songwriter-producer of the past 25 years — and over the course of his career has also collaborated with Rauw Alejandro, Arcángel, Bebe Rexha, Imagine Dragons, Selena Gomez, and Demi Lovato.

Jem Aswad Senior Music Editor Sony Music has dissolved the long-running Arista Nashville imprint, a rep for the company confirms to Variety. The news was first reported in Country Aircheck‘s newsletter. Most of the artists will be absorbed into Sony Music Nashville, with Nate Smith is going to RCA Nashville and Old Dominion and Megan Moroney moving over to Columbia Nashville. Brooks & Dunn is the most famous artist on the label, having been one of its cornerstone acts since 1991, but the duo is not a going concern on the recording front. Apart from a retrospective/duets project three years ago, they have not issued an album of new material since 2007.

Jem Aswad Senior Music Editor In February of last year, as controversy broiled around Joe Rogan’s racially charged language and COVID-related misinformation on multiple editions of his Spotify podcast, the streaming giant’s CEO attempted to defuse the situation by apologizing to his aggrieved staff and pledging $100 million “for the licensing, development, and marketing of music (artists and songwriters) and audio content from historically marginalized groups.” Nearly 14 months later, that $100 million “Creator Equity Fund” has spent less than 10% of its funding on that work,” according to a report in Bloomberg. The initiative was behind schedule in hiring an eight-person staff to oversee the project and “has suffered from shifting priorities,” the report said, citing unnamed people familiar with the effort. At the beginning of this year, the fund had not completed its 2023 budget and had not determined its priority projects, according to a memo the publication said it had obtained, and another fund intended to promote diversity in podcasts suffered after that business was hit by layoffs last year, a union representing workers said.

Row8 offers rentals of new and back catalog films via distribution deals with the major studios. The service allows customers to cancel rentals within the first 30 minutes of watching and exchange for another title, and offers “scene alert,” which alerts parents to potentially inappropriate scenes before they display.

Jem Aswad Senior Music Editor Global recorded-music revenue growth slowed down dramatically in 2022 but still was up 9% according to the year-end report from the International Federation of the Phonographic Industry’s released Tuesday. While 2021 saw an 18.5% growth, largely due to an increase in streaming numbers as the world waited at home for the pandemic to lift, a growth in global streaming numbers powered the past year’s lift, which showed total trade revenues for year at $26.2 billion. Subscription audio streaming revenues increased by 10.3% to $12.7 billion, and there were 589 million users of paid subscription accounts at the end of 2022, according to the report.  Total streaming (including both paid subscription and advertising-supported) grew by 11.5% to reach $17.5 billion, or 67% of total global recorded music revenues, according to the IFPI, which represents more than 8,000 record company members worldwide.

DEALSConcord Music Publishing has signed Australian band Coterie to a worldwide publishing deal. “There is a deep connection and understanding that flows through their songs”, says Jaime Gough, MD at Concord Music Publishing ANZ.

Elsa Keslassy International Correspondent Warner Bros. Discovery and Amazon Prime Video have set the launch date and pricing for their ‘Warner Pass’ offer in France to March 16. Priced at €9.99 per month, the offer will be available exclusively on Amazon Prime Video Channels in France, and will boast all of HBO programs, along with 12 channels, including Warner TV, Eurosport, Discovery Channel, Cartoon Network and CNN, as well as their associated on-demand services. Subscribers will benefit from a 30-day free trial until April 3. “The launch of Warner Pass exclusively as a Prime Video channel in France is the next step in our journey to become the destination for customers in France to find the best in storytelling, premium entertainment and sports,” said Brigitte Ricou-Bellan, Prime Video French Country Director.

Jem Aswad Senior Music Editor Amazon Music has announced the launch of two new weekly flagship music series: the hip-hop-focused “Rotation Roundtable” and the Latin/pop culture show “La Semanal Live.” “Rotation Roundtable,” premiering March 15, comprises a hybrid Twitch livestream and 90-minute podcast experience inspired by Amazon Music’s “Rap Rotation” and “R&B Rotation” playlists. It is hosted by journalist and executive producer Speedy Morman, Power 105.1 host/ producer Nyla Symone, “On the Radar” creator Gabe P and veteran journalist Rob Markman. Each episode will feature a “Big Questions” segment meant to incite discourse about current events in hip-hop. The show will also consist of “Hot Takes,” guest interviews, and a debate segment fueled by chat participation.

Snoop Dogg has brought the Death Row Records catalog back to streaming services.The ‘Gin And Juice’ rapper had promised to bring the iconic rap catalog back to traditional streaming services and apps last month. And on Thursday (March 9), Snoop stuck to his word, announcing the release of the catalog on his Twitter.“Yessir.

Returned Disney CEO Bob Iger acknowledged that fans had a right to be irked as theme park ticket prices crept higher under the previous regime, and said it wasn’t the best way to manage the brand.

Jem Aswad Senior Music Editor SoundCloud has named Eliah Seton chief executive officer, effective immediately. He succeeds Michael Weissman, who joined the streamer in 2017, has served as CEO since 2021 and is departing for a new opportunity. Seton joined SoundCloud in 2021 as president, overseeing the Creator and Roster operating divisions as well as strategy, M&A, content partnerships, business development, and distribution and artist partnerships. In that role, he has been instrumental in refocusing the business on deepening the relationship between its artists and fans through new economic models, products and tools. The company also announced that Fred Wilson, founder of Union Square Ventures and member of SoundCloud’s board since 2011, has been appointed as the new chairman of the board. Wilson succeeds SoundCloud Founder Alexander Ljung who served as CEO from 2007-2017 and chairman from 2017-2022. Ljung will assume a new role as chairman emeritus of the SoundCloud board, continue to serve as a board member and will also remain closely engaged and available to the company’s management team and employees going forward.

Jem Aswad Senior Music Editor Today we release recorded music revenue data for 2022 showing a seventh straight year of continued growth – powered by a robust 8% increase in paid subscription streaming revenues which now make up two thirds of the market. In raw numbers, paid subscriptions hit 92 million for the first time ever, continuing a decade long run of double-digit growth. That’s practically double the 47 million paid subscribers on the books just four years ago in 2018. In the last ten years, streaming has gone from 15% to 84% of U.S. recorded music revenues, a virtual overnight transformation of our industry unmatched by any other media or art form. Other formats also saw significant growth. Streaming all together – paid subscriptions plus ad-supported services, digital and customized radio, and music used in social media platforms, digital fitness apps and others – grew 7% to a record high $13.3 billion last year, while vinyl’s incredible surge continued with revenues up 17% and, for the first time since 1987, more records sold than CDs.  (Read the full report.)

Jem Aswad Senior Music Editor The U.S. recorded-music industry reached an all-time high of $15.9 billion in 2022, marking the industry’s seventh consecutive year of growth. While overall streaming growth has been leveling off in recent years, with 92 million paid U.S. subscriptions, it’s clearly continuing to grow and fuel the market while the steady resurgence of vinyl continues. Collectively accounting for 84% of total revenues, streaming continued to be the largest driver with paid subscriptions, ad-supported services, digital and customized radio, social media platforms, digital fitness apps and others, according to the report. Paid subscriptions were up 7% to a record high revenue of $13.3 billion. Revenues grew 8% to $10.2 billion, passing the $10 billion mark for the first time.

Spotify CFO Paul Vogel said the company’s decision several weeks ago to cut 6% of its global workforce was a “a real positive” in terms of the company being willing to take a hard look at its operations and “evolve.”

Jennifer Maas TV Business Writer Never fear, genre fans: Warner Bros. Discovery is intent on mining as much of its tentpole Warner Bros. IP as possible in the near future, whether that be through its upcoming revamped DC Universe, the newly announced “The Lord of the Rings” movies, or more projects based on J.K. Rowling’s “Harry Potter” franchise amid the success of video game “Hogwarts Legacy.” “DC is an enormous opportunity and two important building blocks are in place now with the leadership team, Peter [Safran] and James [Gunn], and James has been breathing comics for as long as he’s been alive, essentially,” Warner Bros. Discovery CFO Gunnar Wiedenfels said during a panel at Morgan Stanley’s investor conference Wednesday. “A great creative leader here. And the second building block that is in place is the one-company approach, because I think you can only manage a franchise if everything is coordinated and the team is working together extremely well. There’s an enormous level of collaboration and joint decision making around what should work hand in hand across the franchise.”

Jem Aswad Senior Music Editor Spotify announced Wednesday that its all-time payouts to music-rights holders are approaching $40 billion. The company said it pays out nearly 70% of every dollar it generates from music back to the industry, the announcement continues. It generates its music revenue from two sources: subscription fees from its Premium platform paying subscribers, and fees from advertisings on music on its Free tier. These rights holders include record labels, publishers, independent distributors, performance rights organizations and collecting societies, the announcement detailed. It is important to note that the payments go to rights holders first — which is rarely the artist or songwriter —which then take their fee or percentage and pay the creators their share.

Comcast President Mike Cavanagh said the media giant would of course consider alternative proposals for its stake in Hulu but they’d have to top its longstanding agreement to sell its remaining stake in the streamer to Disney next year.