Jim Heindlmeyer: Well, we’re only one quarter until the end of the year. So obviously, as we get closer to the end of the year, we have more confidence in where we will end the year. And I think that that’s something that we will continue. As we get close to the end of the year, we will always have better visibility and higher confidence in where we will end the year. I think that with respect to Q3, we really just saw a very strong performance, whether it’s in the Digital revenue type or in Synchronization, where we had very strong revenue related to advertising. And that’s not something that we look at as being pulled forward from Q4. So we remain confident in how we will do in Q4, and we were able to raise our guidance to reflect the outperformance in Q3.
Alex Fuhrman: Okay. That’s really helpful. Thank you. And then, Golnar, there’s been a lot of headlines recently about the use of music on social media and TikTok, in particular. Has there been any change to how your music is used or paid for on social media? And do you see maybe opportunities for the industry to better monetize that channel over time?
Golnar Khosrowshahi: Good morning, Alex. I think social media, fill in the blank, as far as the platform goes has been an area where we have historically partnered with the NMPA and ensured the use — that the use of music is legally licensed and fairly compensated for. We stand with the NMPA and in this latest action with — Universal’s latest action with TikTok. And we stand with our songwriters, obviously, and rights holders. It’s always going to be an issue in the sense that these are platforms where the content is being distributed some — a lot of times, many times before the legal licensing actually is put in place. And that is a battle that we will continue to fight such that we can get to a place where we’re actually compensated and the music is legally licensed.
And we have quite a bit of history showing that, that can happen and that these platforms can continue to thrive using the music that is both through user-generated content as well as other kinds of content that results in additional revenue for us.
Alex Fuhrman: Okay. That’s really helpful, Golnar. Appreciate that insight.
Golnar Khosrowshahi: Thank you, Alex.
Operator: Thank you. And our next question coming from the line of Dan Day with B. Riley Securities. Your line is open.
Dan Day: Yeah. Good morning guys. Thanks for taking the question. Just a couple for me. The bigger DSP, Spotify, a couple of others, they put through a lot of rate hikes throughout 2023. I appreciate the color on the CRB tailwinds. Just whether you think these were fully reflected in the December quarter, the rate hikes I’m referring to? Or do you think there’s still some tailwinds as these price hikes get pushed out to more and more subscribers?
Jim Heindlmeyer: How are you doing Dan? It’s Jim here. So I think with respect to the — there’s kind of two parts to your question. On the price increases, we’re obviously very happy with what’s happened over the past year with those price increases, and we are looking forward to maybe a more regular cadence of price increases. Having gone 10, 12 years with no price increase, we are certainly looking forward to more regular improvements there. With the rates, as I mentioned earlier, I think that we are still seeing some tailwinds in the quarter as we are currently being accounted under the CRB IV rates and comparing that to the prior year, where we were really estimating under the CRB III rates. And so while there’s a little bit of tailwind there in this quarter, we think that those tailwinds will be fully reflected when we get the final CRB III true-ups, which we are looking forward to in the coming months as the DSPs work with the MLC to push that money through.
Dan Day: Okay. Great. Another question for me, kind of higher level one. Just wondering how you’re either currently using or thinking about using any of these generative AI tools maybe to enhance the productivity of your roster of songwriters, anything you’re investing behind there? And just really anything else you think worth mentioning about generative AI and its current or potential future impact on the songwriting industry would be great.
Golnar Khosrowshahi: Sure. I think there are a lot of tools that enhance efficiencies insofar as production goes, and we are seeing these develop in the studio. And we have songwriters who are already using these tools, not in a way that is threatening to the existence of the songwriter and of themselves. And I think there’s a little bit of noise and misinterpretation around that side of things in that there are a lot of positive outcomes that are — that we are seeing as a result of these tools. We are obviously very well informed about the developments, legal developments insofar as how these tools are using existing IP. And that is an area that we will champion the rights of our songwriters as well as ourselves to ensure that IP is not being used to develop new IP that is based on that existing product.
And compensation for that and recognition of that is obviously very important for us. And then internally in the business, we are using all kinds of AI tools in — through our marketing department, through our deal team, et cetera, and we are seeing some greater efficiencies there.
Dan Day: All right. Great. Appreciate it and I’ll turn it over.
Golnar Khosrowshahi: Thanks, Dan.
Jim Heindlmeyer: Thanks, Dan.
Operator: Thank you. I’m not showing any further questions in the queue at this time. I will now turn the call back over to Golnar Khosrowshahi for any closing remarks.
