2023殊 pregnancy Agreement with Spotify
Warner Music Group (WMG) and Spotifyogene have announced a multi-year agreement that resolves disputes between the two platforms over the "bundling" option. This option allows rights-holders to purchase rights without incurring high royalties, while offering audiobooks and music in bundles for lower subscription fees. The deal also aims to terminate inconsistencies between rights holders and streaming services regarding royalty structures.
BMW Music and Spotify’s deal is similar, expanding synergies with Warner Chappell Music in additional markets, including the United States. While exact royalties are not disclosed, the agreement enhances licensee experiences, adds to catalog depth, and introduces paid subscription tiers, aligning with existing "artist centric" royalty models focused on protecting and rewarding artists by offering exclusive rights to attract and engage audiences.
At the earnings call, IWAC Artistic’s CEO Robert Kyncl highlighted a new licensing deal with Amazon Music. Kyncl emphasized that this deal continues to build on WMG’s existing alignment around "artist centric" royalty models, ensuring further collaboration and accelerating the transition toward greater interoperability and innovation.
The earnings report for both companies saw a 5% decline in total revenue and a 40% drop in operating income. Warner Music’s revenue decreased by 4.7% (adjusted) and revenue growth rates were impacted by a licensing agreement extension and the termination of the distribution agreement with BMG.amed, leading to lower recorded music revenue and specific impacts on physical and streaming revenue.
Warner Music’s digital revenue declined by 2.0% (adjusted) while streaming revenue declined by 1.9%. However, the company adjusted for the $16 million decrease in recorded music physical revenue and $30 million from a digital license renewal, resulting in a net increase of 1.5% in recorded music streaming revenue. Music publishing streaming revenue rose 6.2%, driven in part by projections.
Spotify’s CEO, Daniel Ek, mentioned that their 2025 growth trajectory is accelerated. The company commits to rapid innovation and sustained investment in its leading music offerings, aligning with "artist centric" royalty models that reward and protect artists. They express optimism about the future of music-sharing and its potential to drive bedding changes ad nauseam.
Warner Music’s analyst provided insights, noting that music is increasingly central to both regional and global territories like the U.S., with streaming platforms leveraging technology to grow. This alignment will strengthen as artists place ad revenue directly with promoters, expanding creative freedom.
_invision song
