Universal Music Group head Lucian Grainge. Photo Credit: UMG
Time to kick IP monetization up a notch? Universal Music Group and Patrick Whitesell’s WTSL have officially launched a joint venture designed to unlock “new commercial pathways.”
The major and the Silver Lake-backed investment firm unveiled that JV today, with plans in place to spearhead growth “outside traditional recorded music and music publishing.” Though time will tell exactly what this entails, the companies intend to zero in on film, TV, fashion, consumer products, brands, and more.
Hardly confined to once-off initiatives, the multifaceted efforts will prioritize “owned, repeatable, and equity-driven ventures rooted in creative identity,” the involved parties spelled out.
The same parties also touched on the reach of the major’s current roster and catalog. Not expressly mentioned in the announcement, however, are the sizable sums that UMG and a number of others have dropped on music IP in recent years.
Needless to say, these buyers are eager to recoup their investments. And to put it mildly, today’s diversification push appears comparatively well-positioned to fuel fresh revenue streams and enhance the underlying music’s value without alienating diehard supporters.
“This is about building the future of artist IP with the scale and ambition it deserves,” added the WME co-founder Whitesell. “Universal Music Group represents the most powerful collection of music and artists anywhere in the world. Together, we’ll explore new ways to extend that cultural force into every dimension of entertainment and consumer life—creating lasting business value while keeping music at the center.”
In remarks of his own, Universal Music head Lucian Grainge – whose company previously partnered with Authentic Brands Group – touted the tie-up’s perceived monetization potential.
“We exist at the center of a vibrant ecosystem of partners from the worlds of technology, brands, retailers and media who recognize the power of our artists to shape culture globally,” weighed in Grainge.
“With this new venture we will be able to leverage Patrick’s deep experience in successfully creating non-traditional business models with world-class IP to accelerate the expansion and monetization of our ecosystem to the benefit of our artists and partners,” he proceeded.
The Financial Times stopped short of attaching a firm valuation to the agreement – while highlighting Grainge’s goal of replicating projects such as ABBA Voyage.
On this front, Universal Music certainly isn’t alone in working to chart non-streaming monetization paths.
Looking to build on ABBA Voyage’s success, Pophouse Entertainment is teeing up a KISS avatar band – and, in coordination with the aforementioned Authentic Brands Group, possibly different hologram experiences yet.
Meanwhile, Primary Wave, which has scooped up NIL rights in many of its IP investments, is likewise pulling out all the monetization stops. Just in passing, those moves encompass Whitney Houston slot machines, a Bob Marley immersive experience in Vegas, and even a rumored Notorious B.I.G. Broadway production.
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