An aerial shot of Beijing, where Outdustry is headquartered, according to its LinkedIn profile. Photo Credit: Ran Liwen
A little over one month following the launch of Universal Music China Greater Bay Area, Virgin Music Group (VMG) has scooped up Beijing-headquartered Outdustry.
16-year-old Outdustry, which bills itself as “an artist services and rights management business for the new music industry,” took to social media to disclose the sale today; VMG confirmed the news in a formal release that was emailed to DMN.
With a focus on breaking global talent in both China and India, Outdustry says it’s “overseen marketing” for the likes of Adele, Dua Lipa, Laufey, and Diplo, to name a few. And while the “neutral independent” descriptor featured prominently on Outdustry’s website might need to be reworked in the wake of the sale, the company is touting the deal as “a win-win relationship.”
(Amid continued concerns about major-label-fueled consolidation on the indie side, it’s worth reiterating that Outdustry team members “run Merlin in China,” per the same website.)
On the organizational front, the namesake Outdustry Records is set to become “an affiliated label” of VMG, the Outdustry Songs publishing unit will proceed as an imprint of UMPG, and the sold company’s marketing services “will also continue to operate under the Outdustry brand, open for business as usual to third party clients.”
Next, Outdustry founder and CEO Ed Peto will continue leading his “team of 20 hotshot music industry professionals” while simultaneously serving as VMG’s head of international strategy in London.
“Bringing everything we’ve built at Outdustry into Virgin Music Group represents an enormous opportunity to expand our vision globally,” Peto communicated. “It’s never been a more exciting time to be working in music and I’m looking forward to working closely with the incredible team that Nat [Pastor] and JT [Myers] have assembled to create more opportunities for independent music entrepreneurs and artists all around the world.”
Needless to say, in light of today’s purchase, UMG’s global buildout ambitions definitely extend to China, the recorded music market of which, as underscored by streaming-platform earnings reports and IFPI data, is certainly continuing to grow.
Admittedly, though, limitations remain when it comes to capitalizing on this growth. There are several elements to the multifaceted sub-topic, but Live Nation head Michael Rapino touched on the subject during a Bloomberg sit down earlier this month. China is “too hard” to crack and isn’t “a good business,” per the exec, who indicated as well that “they won’t let most artists in, because they censor all the lyrics.”
(It might be a different story for some genres and artists; East Goes Global, which aims to help acts and celebrities find success in China, just recently emphasized The Chainsmokers’ touring and social media results in the nation.)
Taking a step back, Universal Music’s buyout-powered push for bolstered emerging-market results doesn’t begin and end with China, where Believe and others are likewise hunting for growth. Virgin Music Group kicked off 2024 with the purchase of Saban Music Latin, from which it signed multiple acts, for instance.