Warner Music to prioritize Web3
Warner Music Group (WMG), a major US music entertainment company, announced on the 29th that it will cut about 4% of its global staff. On the other hand, it is said that there is a high possibility of maintaining employees who work on Web3.
WMG CEO Robert Kinsel said in a letter to employees that “WMG is embarking on a new phase of growth at the intersection of creativity and technology,” Variety reports. In line with that direction, company executives have decided to cut about 270 employees, or about 4%, according to the company.
At the same time, we plan to reallocate funds to new skills and new technology experiments that are needed to develop artists and songwriters.
He added that there are now “rapid changes in the economy and ecosystem” that present opportunities for innovation and business growth. The restructuring plan will be discussed in more detail at the next all-hands meeting.
A source at WMG said some of its future business priorities include working on Web3 and experimenting with AI. A company spokesperson also said it was “highly likely” not to lay off employees working in these areas.
What is Web3
The current centralized web is defined as Web2, and refers to an attempt to realize a non-centralized network using blockchain. A typical feature is the use case of decentralized networks such as blockchain, such as access to dApps using virtual currency wallets.
Efforts so far
Warner Music Group (WMG) is already doing a lot of work in the Web3 space.
In December 2022, we announced that we would invest in and partner with digital fashion company DressX. Digital fashion will be available for the artist’s fans to collect and enjoy on SNS platforms such as Instagram, and will be released in 3D and AR (augmented reality) formats.
connection: US Warner Music invests in DressX to launch digital fashion
In addition, we have entered into a multi-year partnership with “LGND.io”, which develops Polygon (MATIC) and NFT (non-fungible token) music platforms. It has also partnered with major NFT marketplace OpenSea.
connection: Warner Music to launch music platform in partnership with Polygon
connection: Warner Music Group, a major US entertainment company, partners with OpenSea
Status of Disney and Google
Amid rising interest rates and worsening economic conditions, tech companies and entertainment and media companies are cutting workers one after another. Regarding the Web3 business, each policy is indicated by whether to maintain or review.
For example, Walt Disney disbanded its Metaverse division of about 50 people as part of a broader restructuring. It has also obtained patents related to the Metaverse, but until now, it is said that no concrete plans for the Metaverse have been finalized.
connection: US Disney dismantles Metaverse division as part of business restructuring = report
Meanwhile, Google laid off 12,000 employees in January, but kept the Web3 team headcount.
Google’s cloud computing division, Google Cloud, provides “Blockchain Node Engine (BNE)”, a fully operational, maintenance and management hosting service for Web3 nodes. We also have a strategic partnership.
connection: Google Cloud to introduce Solana’s node operation agency service