Business Overview and Segments
Warner Music Group is one of the big three music record labels and became a public company as recently as May 2020. It’s a simple business, they sign up artists to deals for their music, and then sell and license the music out to others, which these days is primarily to music streaming services. Their artist catalogue includes; Led Zepplin, The Eagles, ABBA, Madonna, Fleetwood Mac, and Metallica. In recent years they’ve managed to get artists like; Beyonce, Bruno Mars, Coldplay, Cardi B, Ed Sheeran, Gorillaz, Kelly Clarkson, Michael Buble, Red Hot Chilli Peppers, Skrillex, 5SOS, and Wu-Tang Clan.
Patent – they own the rights to the music of these artists for specific contract periods.
Key Facts and Figures
| Risk of Bankruptcy | Low |
| Last Year’s Growth | 12% (Moderate) |
| ROIC (Company Quality) | 6% (Low-Moderate) |
| Free Cash Flow Margin (Company Strength) | 9% (Moderate) |
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