Warner Music CEO, Robert Kyncl, is charting a transformative course for the music industry, designating 2024 as “the year of the next ten” in a memo to his staff. Reflecting on the industry’s profound evolution over the past decade, Kyncl sees the present moment as one of strength, positioning the company to shape a successful future.
In his strategic outlook for 2024, Kyncl articulates three paramount priorities: fostering heightened engagement with music, increasing its overall value, and evolving the collaborative dynamics within the organization. These directives aim to propel Warner Music into a winning decade amid a rapidly changing landscape.
The engagement focus involves optimizing functions such as A&R, marketing, catalog management, distribution, and administration. Kyncl envisions a geographic concentration in A&R, best-in-class marketing solutions, and comprehensive catalog management. Additionally, he underscores the importance of distribution and administrative infrastructure operating at peak efficiency and scale.
The evolution of teamwork is another key aspect, with an emphasis on expertise, transparency, flexibility, and increased collaboration across departments. Kyncl recognizes the significance of a united and adaptive team in navigating the complexities of the modern music industry.
Notably, the memo delves into the hot-button issue of increasing the value of music, echoing a central theme from 2023. Kyncl calls for a strategic alignment in streaming service relationships to better recognize and reward the contributions of artists, songwriters, and catalogs. This involves addressing the proliferation of low-value and functional tracks, hinting at potential alterations to the streaming business model.
Beyond streaming, Kyncl highlights the untapped potential in cultivating direct relationships between artists and superfans. Acknowledging the desire for deeper connections, he sees this as a relatively unexplored and under-monetized area.
In essence, Kyncl’s vision for 2024 blends optimization of existing processes, strategic alignment in streaming relationships, and the exploration of new revenue streams. It signals a proactive approach by Warner Music to not only adapt to the evolving music landscape but also to actively shape its trajectory for the next decade.