Warner Music Group (WMG) Announces Partnership With Tik Tok
Warner Music Group WMG and TikTok have revealed a groundbreaking and unprecedented partnership aimed at benefiting WMG's artists and songwriters as well as TikTok's vast user base worldwide. This multi-year agreement grants TikTok, TikTok Music, CapCut and TikTok's Commercial Music Library licenses to the repertoire of Warner Recorded Music and Warner Chappell Music.
The expanded partnership between WMG and TikTok aims to foster collaboration and innovation. It will offer new revenue streams, marketing avenues and insights for WMG's artists and songwriters, while further engaging TikTok's vast music-loving audience.
Under the agreement, both companies will explore innovative ways to utilize TikTok's revenue generation and promotional capabilities as well as gain valuable insights. Additionally, the collaboration will involve the development of alternative economic models.
Furthermore, the two companies have reached a licensing agreement for TikTok Music, the premium subscription streaming service that recently debuted in Indonesia and Brazil, with intentions to expand into other markets.
This deal enables WMG artists and songwriters to take advantage of TikTok's distinct promotional features and connect with the expanding community of users on CapCut, TikTok's video-editing app.
The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings is pegged at 21 cents per share, which has remained unchanged in the last 30 days. The estimate for revenues is pegged at $1.48 billion, indicating year-over-year growth of 3.54%.
Such partnerships are expected to have aided the company’s share-price movement in the rest of 2023. Shares of the company have declined 14.9% year to date against the Zacks Consumer Discretionary sector’s rise of 13.7% in the same period.
Warner Music Group Corp. Price and Consensus
Warner Music Group Corp. price-consensus-chart | Warner Music Group Corp. Quote
Other Partnerships to Boost WMG’s Top-Line Performance
Major companies have recently partnered with Warner Music Group. WMG has collaborated with Canva, Singapore Tourism Board (STB) and music industry veteran and entrepreneur, Marc Byers.
Warner Music Group and Merlin have recently partnered with Canva. This collaboration marks a groundbreaking move, as it allows paid and education customers in numerous countries to enjoy unprecedented access to music clips from some of the biggest artists worldwide. For the first time, Canva users can incorporate commercially released music clips from these industry-leading collections directly into their designs, making it the first visual communication platform to offer this feature.
STB has teamed up with Warner Music Singapore and the popular English alt-pop duo HONNE to produce an exciting video series called inside-out in Singapore. This unique project utilizes the captivating force of music to present a fresh and inspiring outlook on Singapore. Through the collaboration, the video series aims to showcase the city from a new perspective, offering viewers a delightful and immersive experience of the destination.
Warner Records has entered into a worldwide joint venture with Protect the Culture, a newly established label founded by Marc Byers. As part of this partnership, Byers will take on the role of an A&R consultant for Warner Records, with a particular focus on the vibrant African music scene. He will closely collaborate with the president of A&R, Steve Carless and EVP/head of A&R, Karen Kwak.
Zacks Rank & Key Picks
Currently, Warner Music Group carries a Zacks Rank #3 (Hold).
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Shares of News Corporation have risen 13.1% year to date. The Zacks Consensus Estimate for NWSA’s 2023 revenues is pegged at $10 billion, indicating a year-over-year decline of 3.69%. The consensus mark for earnings is pegged at 9 cents per share, which has remained unchanged over the past 30 days.
Shares of DraftKings have soared 174.7% year to date. The Zacks Consensus Estimate for DKNG’s 2023 revenues is pegged at $3.25 billion, indicating year-over-year growth of 45.20%. The consensus mark is pegged at a loss of 27 cents per share, which has increased by 2 cents over the past 30 days.
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