In this article:
- Warner Music and BlackRock are going to invest three-quarters of $1 billion in female and diverse recording artists through Influence Media.
- Influence Media has already spent $300 million on burgeoning artists who have worked with music giants.
- Warner Media is spending on diversity, while other labels pour money into the acquisition of back catalogs.
Warner Music is betting on the next generation of artists.
The record label and investment firm BlackRock announced that the two companies are investing $750 million in the promotion of female and diverse musicians. Warner Music and BlackRock are working with music investment and management business Influence Media to achieve their diversity efforts.
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The fund has already doled out $300 million in the catalogs of women and diverse artists who have worked with the likes of Justin Bieber, Dua Lipa, J Balvin, Cardi B, and other big-name artists. up-and-coming names include Tainy, the Stereotypes, Jessie Reyez, and Skyler Stonestreet. The funded artists collectively have more than 20 billion streams, and will retain the rights to their catalogs. They’ll also play a part in the marketing and promotion of their music, with the fund’s help. Influence Media doesn’t just support women and diverse talents, but it’s also helmed by two women, Lylette Pizarro and Lynn Hazan.
Warner Music’s decision comes as labels invest in the back catalogs of older, often white, male musicians. In December 2020, Universal Media spent an estimated $300 million to acquire Bob Dylan’s catalog of more than 600 songs. Sony’s December 2021 bought Bruce Springsteen’s music for an estimated $500 million. The acquisition of Springsteen’s library, which includes classic songs like “Born to Run” and “Hungry Heart” is suspected to be the largest ever.
Warner Music made its investment announcement at the end of Black History Month and right before the beginning of Women’s History Month. In a press release, the label’s Managing Director of Warner Music South Africa and SVP, Strategy, Sub-Saharan Africa & Special Projects Temi Adeniji said: “Together we’ll bring new opportunities to some of the most talented artists and songwriters of this generation.” Warner Music isn’t the only company putting money into diversity, equity, and inclusion (DEI) efforts. One October 2021 report found that 79% of companies have planned on allocating more budget and resources to DEI initiatives in 2022.
The label’s decision demonstrates the company’s attempt to attract a more diverse demographic. Warner Music is wagering that the next generation will want to listen to music made by people who represent them.