The Wolves Die Young

I recall reading somewhere that this song was based on the Emperor's New Clothes by Hans Christian Andersen. In the story, the emperor believed he was wearing magnificent looking robes, but in reality he was completely naked. However, none of his aides dared to point it out to the emperor, because the tailor who "made" the robes for the emperor claimed that whoever couldn't see the robes were considered incompetent at their jobs. Hence, no-one dared to point out the fact that the emperor was naked to avoid being fired from their jobs. However, some young kids who didn't know the significance of the "robes" pointed out that the emperor was completely naked, and had been all this time.

Similarly, in this song, the young children (the "wolves") point out that the tyrant queen in the song is actually naked. However, the queen is scared of this, since she knows of a prophecy which states that the "wolves" (the young children) who cannot see the robes will end up dethroning the queen. Hence, when the children point out that the queen is naked, she demands for the wolves to be executed (This is the day when the wolves die young/They'll never see a new midnight sun) to avoid them fulfilling the prophecy and taking over her throne (I'm going to make sure the prophecy is undone).

So as you can see, although the song sounds really bright and cheery, it's actually anything but.

As well as the classic tale by H. C. Andersen this song seems to have many references to the Game of Thrones book series (a Song of Ice and Fire) by George R. R. Martin (and the TV adaptation of the books on HBO).

In the first verse it's getting colder and winter claims the land. "Winter is coming" is the motto of the Stark family (Wardens of the North) and the central theme of the whole series. The Stark family crest is a direwolf and the Starks are often referred to as the Wolves. The midnight sun is a clear reference to arctic summer in the north, when the sun stays above the horizon even at night. So, the wolves in the song will not live to see another summer.

"The Queen" in the song is an obvious reference to Cersei Lannister, who has heard a prophecy that she will one day be dethroned by the Starks. Fearing this, Cersei conspires to have the Starks killed or otherwise neutralized, but a couple of the Stark children manage to escape. So to make sure the prophecy is undone, queen Cersei has to find out where the "young Wolves" have run and see to that they die young and not pose a threat.

In the books and the TV series queen Cersei falls from grace and is paraded through the streets naked and in shame. After that, she truly becomes a vengeful tyrant, who makes the innocent and meek bend the knee and pray forgiveness for her humiliation.