There’s a holy trinity of new tech opportunities for music licensing in 2021: social, gaming and fitness. It’s a trio of sectors that gets mentioned in many interviews with major label executives these days, and WMG boss Steve Cooper’s appearance at the Goldman Sachs Communacopia event yesterday was no different.
However, Cooper also had some figures to share on how social, games and fitness are paying off for Warner Music Group. $235m a year (in annual run-rate terms) from “alternative offerings that create new use cases for music” according to MBW’s writeup of his appearance.
Facebook, TikTok, Peloton and Roblox (in which WMG is an investor as well as a partner) were four of the services singled out by Cooper.
“You’ve got to keep in mind that in all of these areas – metaverses and gaming, live-streaming, utilization of avatars, NFTs – are all in their infancy,” he said, referring to their licensing potential for labels.
“But many of them have a potential to become the next global platform. And in fact, many of them are already moving in that direction.”