Should you surf Sony Music’s website this week, you may notice a video interview with the firm’s Chairman, Rob Stringer, conducted by Music Business Worldwide’s Tim Ingham.
The discussion was primarily filmed for an audience of (non-music) global Sony employees, as an introduction to the music industry and Sony Music Group’s (SMG) place within it. For obvious reasons, it doesn’t delve quite as deep into the minutiae of the biz as you’d expect from a typical MBW interview.
Nevertheless, Stringer’s answers contain nuggets of interesting insight about today’s industry and SMG itself.
They span topics including Sony’s unique position in the global entertainment landscape, the catalog M&A gold rush, and the threats and opportunities presented by artificial intelligence.
Recorded within Sony Music UK‘s slick King’s Cross headquarters in London, here are five key takeaways from the Q&A…
1. Being part of Sony Corp – not being a standalone public company – is a “competitive advantage”, says Stringer
While Universal Music Group and Warner Music Group operate as publicly traded standalone music companies, Sony Music Group benefits from being part of the wider Sony Corporation ecosystem – something Stringer views as a clear advantage in today’s entertainment landscape.
“We are different because our main two competitors are listed companies that are owned by independent shareholders, and we are part of a bigger corporation. Which, to my mind, is a competitive advantage because we do use the synergy with our other sister divisions to tell a story about something wider than just being a music company,” Stringer explains.
“We are different because our main two competitors are listed companies that are owned by independent shareholders, and we are part of a bigger corporation. Which, to my mind, is a competitive advantage.”
Rob Stringer
This ‘One Sony’ philosophy has evolved over time, with collaborations now spanning across various divisions.
Recent examples include Sony Music Group partnering with Sony Pictures on documentaries, developing a Lionel Messi cartoon series with Sony Television, and capitalizing on the global popularity of anime through Sony Music Japan.
2. The Orchard acquisition was a strategic masterstroke that positioned Sony ahead of industry trends
Sony Music acquired The Orchard in two stages, buying half of the independent services company in 2012, before splashing $200 million on the remainder in 2015 – a price that looks like an absolute bargain in hindsight.
“When we bought 50% of an independent distribution company over 10 years ago, M&A in that area was not prevalent,” says Stringer. “So I think we were ahead of the game.”
“The Orchard is not just a subsidiary of what we do; it’s front and center of what we do as a music company around the world.”
This forward-thinking approach positioned Sony at the vanguard of what would become a major trend in the music business: the growth of global services units within major music companies aimed at independent artists and labels. The Orchard has been particularly key in accelerating Sony’s business in Latin America.
“We think [The Orchard] is not [just] a subsidiary of what we do; it’s front and center of what we do as a music company around the world,” emphasizes Stringer, adding: “Some of the world’s biggest artists have come to us through that system. It’s been extremely powerful for us.”
3. Entrepreneurs are the lifeblood of Sony Music’s expansion strategy
Stringer’s leadership at Sony Music Group has been characterized by a strong emphasis on partnering with entrepreneurs rather than exclusively acquiring and absorbing businesses.
Recent examples include deals struck with Bad Bunny’s Rimas Entertainment, Drake’s OVO, and indie stalwart Fat Possum.
This philosophy extends beyond The Orchard into a broader vision for how Sony grows globally.
“I believe that in the music business right now, you have the most entrepreneurs at any point, maybe since the beginning of the music industry,” Stringer explains. “I feel very comfortable working with people who have a vision and bring in a different value system to maybe what we have in the center of the company.”
“I believe in taking a gamble on people who can bring in something new to us.”
This entrepreneur-focused strategy was epitomized by Sony’s 2023 investment in Rimas, the Puerto Rico-based label that has become a worldwide powerhouse in the reggaeton scene and beyond.
“We got in early [on working with Rimas], through The Orchard. But the fact is that Noah [Assad] has total creative control. He’s running a business that we’re learning from,” explains Stringer.
Stringer adds: “I believe in taking a gamble on people who can bring in something new to us.”
4. Sony’s catalog acquisitions strategy builds on decades-long relationships with iconic artists
In recent years, Sony has invested billions in acquiring music catalogs from legendary artists, including Bruce Springsteen, Bob Dylan, Queen, and Pink Floyd. It also acquired a 50% stake in Michael Jackson’s rights via the late megastar’s estate.
“I think it’s obvious for a company like us that is rooted in some of the greatest artists and music of all time, that we would feel comfortable dealing with people’s catalogs,” Stringer explains. “We’ve tended to buy into catalogs that we have experience with.”
This emphasis on existing relationships is evident in Sony’s acquisition choices.
“We’ve tended to buy into catalogs that we have experience with.”
Explains Stringer: “Pink Floyd we’ve [distributed] in North America for 50 years; we now [own the recorded music for] the world. Queen, we have [long represented] the publishing, we now have the recordings and name and likeness. Michael Jackson, we’ve had a relationship for 50 years on the recording front and we’ve been his publisher for his songs for many years. Bob Dylan, Bruce Springsteen – cornerstones of our company for decades and decades.”
Stringer believes these iconic catalogs hold tremendous value in today’s fragmented media landscape. “I don’t believe the power of artists that built up their careers over 20, 30, 40, 50 years can be anything but more powerful [in the future],” he says.
Yet Stringer balances this catalog strategy with Sony’s commitment to emerging artists: “I will always believe that you have fantastic iconic artists, but you’ve [also] got to find brand-new artists… who are going to shape the generations of music to come.”
5. Stringer balances vigilant protection of artists with measured optimism about AI’s future potential
While Sony Music has been at the forefront of challenging unauthorized AI use – having recently requested the removal of more than 75,000 AI-generated deepfakes of its artists including Harry Styles, Queen, and Beyoncé – Stringer maintains a nuanced perspective on AI’s future role in the industry.
“At Sony, we’ve got to be very [clear] that we cannot be fearful of technology. That would be a very weird thing for a company of Sony’s history and Sony’s scale to do,” says Stringer, noting his belief that AI offers “a tremendous capability of taking music to people around the world in the next 10 years in a completely different, new way”.
This balanced outlook aligns with Sony’s broader corporate position, which actively defends artists’ rights while acknowledging AI’s potential under proper frameworks.
Stringer draws parallels to the early days of sampling in hip-hop, suggesting that AI could eventually follow a similar path – but only with robust compensation and licensing structures in place.
“We cannot be fearful of technology. That would be a weird thing for a company of Sony’s history and Sony’s scale to do.”
He is, however, unequivocal about the importance of fair compensation. “We’d like to come to an agreement with the AI platforms that, when music is used as a palette of paints to create a picture, the artists that created those palettes are rewarded fairly,” says Stringer.
This position reflects Sony’s broader strategy: actively engaging in licensing negotiations with AI developers while simultaneously participating in copyright infringement lawsuits against AI companies like Suno and Udio for unauthorized use of its catalog.
Elsewhere, Sony has demonstrated selective engagement with AI through projects like its 2023 collaboration with David Gilmour of Pink Floyd on a global AI remix project. Sony has since invested in the AI company at the center of that collaboration, Vermillio.
Discussing his optimism for a sensible licensing framework to be agreed with leading AI companies, Stringer adds: “We certainly worked it out very quickly with the streaming platforms – Spotify, Apple, Amazon, and YouTube – over a period of less than half a decade. That needs to be hopefully repeated in AI.”
This balanced approach – protecting copyright while exploring innovation – suggests that Sony recognizes both AI’s perils and possibilities, provided that creators remain in control.
You can watch Rob Stringer’s full interview with Tim Ingham through here.Music Business Worldwide
