Artificial Intelligence is everywhere in the music industry — from the song recomendations on Spotify to TK TK TK.
Warner Music Group bulked up their investment in artificial intelligence with its mid-August acquisition of IMGN, a content creation platform that works with social media influencers on brand partnerships. IMGN’s proprietary AI technology will primarily be “providing insight into social media trends,” according to a statement from Warner. The sale — estimated at around $100 million, according to Techcrunch — is in line with several acquisitions by Warner in the last few years. Looks like you can make millions AND memes — take that J. Cole!
Why would one of the Big Three recording companies be stockpiling data analytics firms (and meme factories) like it was gearing up for the music tech Cold War? As music consumption has shifted onto a diverse, and constantly changing, landscape of platforms, Warner has decided that in order for it to market records effectively that it must invest in understanding customer taste. Rather than rely on data from individual platforms like Spotify, TikTok, or Facebook, Warner can collect and analyze consumer data in-house to better determine what people want to hear and see.
IMGN are responsible for popular Instagram meme account Daquan and the ASMR TikTok channel So Satisfying, claiming more than 3 billion monthly views and 40 million content subscribers across their channels. The firm sees itself as “Makers Of Youth Culture” and primarily caters to Gen Z audiences, with 13- to 24-year-olds accounting for 85% of their audience. The habits and interests of that audience is then used to build customer profiles and predict upcoming trends.
Warner Music went public in May, with a $1.8 billion IPO, as music sales have soared in recent years thanks to the rise of streaming services.