Warner and My Diploma Thesis II

August 8, 2007

Few months ago, Warner mentioned their new strategy and I was making fun, that I had this strategy as result of my diploma thesis years ago. In the F3Q07 Earnings Call Mr. Bonfran gave more detailed informations to their strategy.

“At Warner Music, everything begins with a selection of talented artists who we nurture and develop to maximize their career potential. In the past, our investment in recording artists had a sufficient return from the recorded music business alone. Today that is not the case and our return needs to be enhanced through a broader partnership with artists.
As you know, our two main businesses today are recorded music and music publishing, which are only a subset of the broader music business. While the overall music business, including management, touring, sponsorship, merchandising, et cetera is growing, the recorded music business at present is not, while the music publishing business remains stable. The A&R and marketing investment that we make in recording artists fuel the growing segment in which we are not materially participating. Accordingly, as we transform to a music-based content company, our goal is to redefine our role in the music value chain.”
(…)
“To further execute our strategy of broadening our partnership in artist revenue streams, Warner Music and Chris Lighty, founder and CEO of the artist management company Violator Management, announced the formation of a new joint venture, Brand Asset Group. Brand Asset Group will aggressively manage artist brands from all genres and capitalize on the value of those brands through corporate sponsorships, strategic and integrated marketing campaigns and comprehensive brand extensions. This company is securing high-profile sponsorships with companies like Coca-Cola and Pepsi for musical artists similar to what other companies arrange for major sports figures.”

Well, he is right!

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One Response to “Warner and My Diploma Thesis II”


  1. […] Follows Warner and Universal Back to the Artists. September 1st, 2007 I wrote about Warner here already, now Sony BMG and Universal do it too. The majors position for a broader “360 […]


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