Warner Music Group CEO Robert Kyncl has detailed the company’s approach to generative AI in a new blog post published Wednesday (Nov. 19). The missive arrived just hours after WMG announced a settlement and licensing deal with Udio, effectively ending its part in a blockbuster copyright infringement lawsuit against the AI music company, which it brought alongside the other two majors.
In Kyncl’s address, he stressed that while it’s “early days” for AI, “this is the moment to shape the business models, set the guardrails and pioneer the future for the benefit of artists and songwriters.” The CEO also revealed his thought process when going into meetings with AI companies, saying that his three non-negotiables include “partners who commit to licensed models”; economic terms that benefit and “reflect the value of music”; and giving the company’s signees a choice to “opt-in” to any use of their names, images, likenesses or voices in new AI-generated songs.
Kyncl also stated his belief that AI tools will further democratize music creation, adding that to stand out “in a sea of AI-generated content, real artistry identity and vision” is needed. He additionally stressed that the music industry should focus on engaging fans and getting them to lean in, saying, “the more interactivity users have with the music they love, the more value is created.”
Read the full blog post below.
AI is still in its early days. Investment is surging, talent is pouring in, and a crop of new, ambitious startups are working with music again for the first time in more than a decade. This is the moment to shape the business models, set the guardrails, and pioneer the future for the benefit of our artists and songwriters.
We’re approaching this new era with one priority above all else: protecting and empowering the artists and songwriters who are our reason for being. Every decision we make, every partnership we forge, every principle we establish is designed to ensure that they benefit from AI’s possibilities.
Every AI deal we make is guided by three non-negotiable principles:
1. We will only make agreements with partners who commit to licensed models;
2. The economic terms must properly reflect the value of music;
3. And, most importantly, artists and songwriters will have a choice to opt-in to any use of their name, image, likeness, or voice in new AI-generated songs.
WHY THIS MOMENT MATTERS
Over the last 25 years, we’ve experienced the democratization of music distribution. Many predicted it would lead to the demise of our industry, but the skeptics were proven wrong.
The barriers to entry have fallen, the world has gotten smaller, and artists are global from day one. Fans love having unlimited personalized access, streaming is driving unprecedented growth, and music is more valuable than ever.
Now, we are entering the next phase of innovation. The democratization of music creation.
We believe Generative AI will lead to a new explosion in creative and commercial opportunities, and that authentic talent will be even more in demand for two reasons
- In a sea of AI-generated content, real artistry, identity, and vision will define stronger artistic brands.
- The ability for fans to utilize AI will unlock even greater value. As history shows, the more interactivity users have with the music they love, the more value is created.
OUR APPROACH
Our approach is clear: legislate, litigate, license. We lobby for legislation that sets clear guidelines. We deploy litigation to halt bad actors. And we use licensing as the most powerful way to shape the future. Licensing is how we can safeguard our artists and songwriters, while collaborating with tech partners, to propel new fan experiences that drive additional revenue.
The partnerships we forge will offer a variety of specific use cases. Each of them adheres to our principles, winning important protections for artists and songwriters, while ensuring that they share in every dollar that’s earned. And as the services grow their revenue, so will the pay outs.
This space is moving lightning fast. Past lessons teach us that delaying only lets others define our future. The music business learned that during the file-sharing era. And the film & TV industries are still regretting not embracing streaming sooner. So for artists and songwriters to win, the music industry needs to be a leading force in the formative stages of AI, not a passive participant. We will steer the course in this new era to deliver greater value for our artists, songwriters, and their music.
This is only the beginning.
Robert Kyncl
