Warner Music Group (WMG) and Twitch recently announced a first-of-its-kind relationship to launch recording artist channels and create a standalone music space featuring premium music-centric programming on Twitch. The deal demonstrates that the legacy music labels such as WMG are as important as ever. In fact, they might play a more vital role as star makers in an increasingly cluttered digital world.
Why Digital Is a Two-Edged Sword
In the digital age, anyone who has a TikTok or YouTube account can publish music. And in that regard, digital is liberating: you don’t need a deal with a record label to share your music to the world. But how do you find an audience after you upload your music when everyone around you is competing for eyeballs and ears, too? A Scooter Braun discovering a Justin Bieber on YouTube happens rarely. Music labels possess the muscle and money to amplify your name. If they do their jobs right, they solve the distribution and promotion problem for up-and-coming artists.
Why the Twitch/WMG Deal Matters
The Twitch/WMG deal will tap into the power of Twitch as a distribution platform for WMG artists. WMG acts Saweetie, Bella Poarch, and Sueco will receive artist channels on the platform, with more to come. Twitch may also become an important intermediary between artists and some of the brands that have marketing relationships with Twitch, ranging from Chipotle to the NFL.
The relationship will also give WMG a way to scout emerging talent on one of the most culturally relevant platforms in the world. For example, WMG and Twitch have already announced programming that includes a freestyle throwdown for Twitch rappers and a segment, “The One,” in which guest artists will “meet up-and-coming Twitch musicians that they have inspired.”
A closer relationship with Twitch should also give WMG an important listening tool to monitor the tastes of the all-important Gen Z/Millennial audience that Twitch attracts.
This Twitch/WMG deal is about two powerful brands understanding how to become more influential during the rise of the creator economy.