KYNCL ON TECH & MUSIC: "TWIN ENGINES OF SUCCESS"

Warner Music Group CEO Robert Kyncl expanded on his bullish approach to technology in presenting quarterly financial results, spelling out his vision for the company’s future and emphasizing the need to get more money for music from DSPs.

“Technology can be our ‘force multiplier’—a force multiplier for the skills and capabilities of our team in service of our artists, songwriters and our catalog,” he said. “It’s not going to happen overnight, but long-term, we’re looking at music and technology as the twin engines of our success.”

Kyncl broke down the company’s approach to a four-point plan:

• Create efficiency by enhancing systems and decision-making so resources are freed up for higher ROI opportunities
• Increase effectiveness as brand managers for artists and songwriters
• Grow scale through services for a greater range and number of artists and songwriters—all on one tech stack
• Evolve the products to better monetize the artist and songwriter superfan relationship

“We’re building the leadership, the team and the culture that will bring an unprecedented level of tech expertise to the music business,” he said. “We are 100% focused on efficiency, 100% focused on effectiveness. More encouraging is that the music part of the company is embracing it. I can’t underscore more how unprecedented this is in the music industry.”

Kyncl also continued to emphasize that music is undervalued and that streaming services’ recent price increases are but a “first step” in creating “a healthier ecosystem for artists and songwriters.”

He said negotiations are underway to experiment with different streaming models, arguing that valuing every piece of content exactly the same is “not how the world works,” using cable TV and sports as examples.

“It can’t be that an Ed Sheeran stream is the same value as the sound of rain falling on a roof,” he said. “It’s time to reevaluate how we’re licensing. I’m not trying to limit the content that’s available, just change the value equation. It’s too early [to get into details], but it’s a top priority to change.”

And with any discussion of tech these days, the subject of AI has to come up. Kyncl said, “Framing it only as a threat is inaccurate. AI is just like any emerging technology; there will be challenges and opportunities. With the proper expertise, it will be a powerful tool for the music industry, and we intend to be at the forefront of how to best deploy it.”

The company’s first order of AI business is to enforce copyrights and defend the originality of artists and songwriters.