Photo Credit: Warner Music Group
WMG CEO Robert Kyncl says the label isn’t shopping for any indie distributors, instead building and expanding their own distribution capabilities.
Warner Music Group is looking into expanding their in-house distribution capabilities instead of acquiring independent distributors. That’s according to CEO Robert Kyncl at a recent Morgan Stanley mini-conference.
The news follows WMG’s pass on Believe last year to the tune of $1.8 billion. In April, WMG announced its decision to pass on Believe — who is embroiled in a $500 million lawsuit with Universal Music Group. The copyright infringement suit was confirmed in November to be moving forward, with a pre-trial conference held in January.
Universal, meanwhile, is still in the process of acquiring Downtown Music Holdings through its Virgin Music Group subsidiary. That’s opened a Pandora’s box with European music trade association Impala, who warns that further consolidation of the market only serves to expand UMG’s market share, hurting indie artists.
Back on the WMG front, given the choice to either build or buy, Kyncl says he wants to build: “I’ve looked at all distribution companies over the last 18 months — and we’re not willing to grow this at all costs. We have an incredible technology team, which has been building features already for a year and a half. So this way you get to the same outcome much more efficiently.”
WMG has undergone some significant organizational changes, with lots of job cuts and reorganization. But the label has also had some strategic new hires, including Ariel Bardin, who is tasked with improving the company’s technology and digital supply chain. Reorganization efforts have also put Kyncl in closer contact with Warner Music Latin America president Alejandro Duque and new Atlantic Music Group CEO Elliot Grainge.
That said, Kyncl wouldn’t say no to any acquisitions; WMG’s recent appointment of Michael Ryan-Southern, as EVP of corporate development, is tasked with finding potential acquisitions to boost WMG’s growth and earnings. This move demonstrates the company the company is still interested in strategic acquisitions as it moves into new areas of growth.
Content shared from www.digitalmusicnews.com.