Streaming, AI, Strategy: Warner’s New Direction

At the Bloomberg Screentime conference on October 8, Warner Music Group CEO Robert Kyncl shared a bold vision for the next chapter of the music business. He addressed artificial intelligence, streaming video, pricing models, and the evolving role of major labels. His message was direct: Warner plans to lead the industry through its next transformation.

Unlocking the Catalog: “Marvel for Music”

To start, Kyncl compared Warner’s catalog to “Marvel for music,” citing icons like Prince, Madonna, and Fleetwood Mac. He suggested that streaming video partnerships could unlock powerful storytelling opportunities. Although he didn’t confirm a rumored Netflix deal, he hinted that announcements are coming soon. This strategy shows Warner’s intent to expand beyond traditional distribution and into global entertainment.

Kyncl also focused on artificial intelligence. He drew parallels between today’s AI moment and the rise of user-generated content on YouTube 15–17 years ago. “I think of AI as that on steroids,” he said, emphasizing the need for proper licensing. Warner’s approach follows “3 L’s”: license, legislate, and litigate. He added, “We maintain that if you want to train on our content, you have to license it.” Kyncl believes that branded music from major stars will gain value as AI-generated tracks flood the market.

Streaming Prices Rise—and So Does Market Share

In addition, Kyncl highlighted a shift in streaming economics. After 15 years of flat pricing, platforms like Spotify have started raising subscription rates. “The really big change for music is that after many years of growth only through subscriber growth, now we’re also going through pricing increases,” he noted. With Goldman Sachs predicting over a billion paying subscribers by 2030, he described music as “a healthy industry.”

Looking ahead, Kyncl predicted that major labels will evolve into full-service companies. He pointed out that in East Asia, labels already offer management and live promotion. “In a world where anyone can publish… no one can be heard, because the noise level is so high,” he said. For him, larger, integrated companies are essential to help artists break through.

In summary, Warner’s strategy blends innovation with scale. By embracing AI, expanding services, and exploring new media, Kyncl believes labels can thrive in a crowded, tech-driven marketplace.