WARNER MUSIC GROUP AND UDIO COLLABORATE TO BUILD A NEW LICENSED MUSIC CREATION SERVICE
Rhea-AI Summary
Warner Music Group (NASDAQ: WMG) and Udio announced a settlement that resolves their copyright infringement litigation and establishes a licensing framework to build Udio's licensed AI music creation service, targeted to launch in 2026.
The agreement covers WMG's recorded music and publishing businesses, commits to authorized use of music, and aims to create new revenue streams while ensuring artists and songwriters are credited and paid. Udio will transition from its current closed system to fully licensed applications and roll out expanded protections ahead of launch.
Positive
- Copyright litigation with WMG resolved, clearing legal uncertainty
- Licensed AI music creation platform scheduled to launch in 2026
- Agreement covers recorded music and publishing, enabling new artist/songwriter revenue
Negative
- None.
News Market Reaction
On the day this news was published, WMG gained 1.67%, reflecting a mild positive market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $261M to the company's valuation, bringing the market cap to $15.90B at that time.
Data tracked by StockTitan Argus on the day of publication.
Through this collaboration, Udio will develop a next-generation music creation, listening, and discovery platform powered by generative AI models trained on licensed and authorized music. The agreement—which spans WMG's recorded music and music publishing businesses—creates new revenue streams for artists and songwriters, while ensuring their work remains protected.
"Collaborating with WMG marks a significant milestone in our mission to redefine how AI and the music industry evolve together," said Andrew Sanchez, Co-Founder and CEO of Udio. "This partnership is a crucial step towards realizing a future in which technology amplifies creativity and unlocks new opportunities for artists and songwriters. Our new platform will enable experiences where fans can create alongside their favorite artists and make extraordinary music in an environment that offers artists control and connection. We're absolutely thrilled to be working with WMG in creating this new future."
Robert Kyncl, CEO, WMG said: "We're unwaveringly committed to the protection of the rights of our artists and songwriters, and Udio has taken meaningful steps to ensure that the music on its service will be authorized and licensed. This collaboration aligns with our broader efforts to responsibly unlock AI's potential - fueling new creative and commercial possibilities while continuing to deliver innovative experiences for fans."
Udio's reimagined subscription service will introduce a suite of creative experiences that enable users to make remixes, covers, and new songs using the voices of artists and compositions of songwriters who choose to participate, while ensuring artists and songwriters are credited and paid. Ahead of the launch, Udio will also be rolling out expanded protections and other measures designed to safeguard the rights of artists and songwriters.
This new offering represents a significant evolution for Udio, shifting the company's focus to a platform built in collaboration with artists and songwriters. To support a smooth transition, Udio will continue providing access to its current, closed-system as Udio transitions into serving fully-licensed applications in 2026.
About Warner Music Group
Warner Music Group (WMG) brings together artists, songwriters, entrepreneurs, and technology that are moving entertainment culture across the globe. Operating in more than 70 countries through a network of affiliates and licensees, WMG's Recorded Music division includes renowned labels such as 10K Projects, 300 Entertainment, Asylum, Atlantic, Big Beat, EastWest, Elektra, Erato, First Night, Fueled By Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Spinnin', Warner Records, Warner Classics, and Warner Music Nashville. WMG's music publishing arm, Warner Chappell Music, has a catalog of over one million copyrights spanning every musical genre, from the standards of the Great American Songbook to the biggest hits of the 21st century. Warner Music Group is also home to ADA, which supports the independent community, as well as artist services division WMX. Follow WMG on Instagram, X, TikTok, LinkedIn, and Facebook.
About Udio
Udio builds extraordinary AI experiences to empower musical artists and super fans. Pairing industry-leading AI technology with groundbreaking partnerships across the music industry, Udio's mission is to champion musicians and expand how fans engage with their favorite music and artists. Udio is backed by leading lights from tech and music, including a16z, Redpoint, Hanwha, will.i.am, Steve Stoute, Kevin Wall, and many others. For more information, please visit udio.com.
Media Contacts:
For Warner Music Group
Majeda Hussein
majeda.hussein@wmg.com
For Stability
press@stability.ai
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SOURCE Warner Music Group Corp.
FAQ
What did WMG and Udio announce on November 19, 2025 regarding their litigation?
When will Udio's licensed AI music creation service with WMG launch (WMG)?
Does the WMG and Udio agreement cover publishing rights as well as recorded music (WMG)?
How will artists and songwriters be treated under the WMG-Udio deal (WMG)?
Will Udio continue its existing service while transitioning to the licensed platform?
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