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Source- Warner Music’s website India, alongside China, is one of the top two global expansion markets for Warner Music Group, valued at $16 billion, and represents the next billion-user market, CEO Robert Kyncl told ET.
The New York-headquartered company, with over $6 billion in annual revenue, is actively seeking acquisition opportunities in India. Kyncl emphasised Warner’s goal to expand its presence in the region, encouraging the local team to accelerate deal flow.
India ranks fifth in global GDP but only 14th in the music market, showing a gap with significant growth potential, Kyncl said. He believes that as GDP rises, advertising revenue and music subscriptions will grow, and India’s music industry could eventually rank alongside its GDP.
India’s rich diversity in languages and genres also presents Warner Music with unique opportunities to explore and promote regional music on a global scale.
“India is like a continent, with diverse genres and regional music that can matter even more globally,” Kyncl added.
With India’s expanding internet user base and smartphone adoption, access to global music charts and exposure for regional music will broaden, he noted.
The company is eyeing assets in the Intellectual Property, services, and tools that enhance the services to music artists, he said. Warner Music Group entered India’s music label market in 2020, a space dominated by companies like T-Series and Sony Music. To expand its presence, Warner has pursued strategic acquisitions, including a 26% stake in Global Music Junction in April 2024, a majority stake in Chennai-based Divo in February 2023, and the artist management firm E-Positive in October 2023.
“We’re already doing great in India, but it can be a much bigger part of our story,” Kyncl said.
Warner Music’s expansion approach balances organic and inorganic growth, with a particular focus on organic initiatives to drive substantial growth while adhering to strategic and economic confines.
Kyncl, familiar with the Indian market from his tenure as YouTube’s chief business officer, noted that the Indian media and entertainment landscape has evolved significantly over the last 15 years and will continue to grow, driven by internet penetration and smartphone adoption.
“Music aligns perfectly with the internet, and nothing travels faster globally than music online. In India, the growth in internet access since Jio’s launch presents a massive opportunity for artists to reach broader audiences,” he explained.
Although India’s music industry is currently ad-driven, subscription models are expected to grow, creating a more balanced revenue stream, the Warner Music CEO noted. Kyncl also highlighted Warner Music’s ongoing digital transformation, aligning with the global shift to digital and preparing for an AI-augmented future in music production.
“So, I think it will be a powerful tool for creativity. We just don’t want it to be a substitute for creativity,” he noted.
Warner Music’s recent organisational restructuring is designed to flatten management and provide greater autonomy to regional teams, including India, to better tailor strategies for diverse markets.
- Published On Oct 28, 2024 at 10:51 AM IST
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