WMG CEO Sees Opportunities Post-Pandemic

Warner Music Group sees its physical, merchandise and live performance businesses that took a hit in the COVID-19 pandemic “springing back,” WMG told an investor event. CEO Stephen Cooper sees opportunities from many areas. On whether he sees disintermediation in the music business in the way direct-to-consumer streaming services are proliferating in the over-the-top video market, Cooper said Thursday the concept is “always on our radar screen” and “doesn’t present a substantial risk.” The music model is different from the long-form video model because it requires “ubiquity,” he said. Warner’s artists “want their music to be everywhere,” he said. Cooper cited a “backlash” in the past few years when some streaming services tried exclusivity. "It just backfired because artists want their music to be accessible to everyone,” he said. The long-form video model, by contrast, is about exclusivity. Disney expanding from content to distribution and Netflix growing from distribution to content are examples of "far more vertical integration than I believe one will ever see in music.”