WMG Robert Kyncl

Photo Credit: Robert Kyncl, WMG CEO

Robert Kyncl shared WMG’s AI strategy mere hours after announcing deals with Udio and Stability, listing his non-negotiables in licensing talks.

Hours after Warner Music Group (WMG) announced a settlement and licensing deal with Udio and a similar agreement with Stability AI, WMG CEO Robert Kyncl published a blog post giving a deep-dive on the company’s AI plan and his list of non-negotiables in licensing talks with AI companies.

The blog post came just after WMG announced landmark deals with both Udio and Stability AI. The former ends the company’s copyright infringement lawsuit against the AI music company, which it brought alongside the other two major labels (Universal and Sony).

“This is the moment to shape the business models, set the guardrails, and pioneer the future for the benefit of our artists and songwriters,” Kyncl’s blog post begins. “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 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.

“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,” Kyncl continues.

“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:

  1. In a sea of AI-generated content, real artistry, identity, and vision will define stronger artistic brands.
  2. 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 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,” Kyncl explains. “Licensing is how we can safeguard our artists and songwriters, while collaborating with tech partners, to propel new fan experiences that drive additional revenue.”

Each partnership WMG forges, Kyncl says, will offer a variety of specific use cases, and each will adhere to the company’s principles. As the services grow their revenue, so too will the artist payouts, he promises.

“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,” the post concludes. “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.”