Blog: Warner Music Group

The flood of new music created using artificial intelligence (AI) will further erode major label market share, and some label executives’ recent comments about the value of human-made music seem to put those fears in plain sight.

Throughout the last decade more than $10 billion has been invested into music catalogues. UMG bookended the merger and acquisition (M&A) boom with the Tencent-led $3 billion stake in its business, but was exceptional in that the majority of the investment was otherwise going into the independent sector (especially independent publishers).

Taylor Swift has done it again, striking a deal with UMG that includes a commitment from the world’s largest label group to share proceeds from Spotify stock sales with artists, even if they are not recouped (ie haven’t generated enough revenue to have paid off the balance on their advance so not yet eligible to earn royalty income).

Warner Music Group has announced they will be acquiring Dutch Dance Label Spinnin Records for $100m. Whilst the label boasts some of the most popular names in Dance Music, such as Martin Garrix and Tiesto, much like the record Neymar transfer we discussed earlier this year , this is as much an investment in digital real-estate as it is for Spinnin’s copyright and management functions.