Universal Music Group (UMG) has expanded its relationship with HYBE to include exclusive digital and physical distribution rights to the company's artists for the next 10 years. UMG will also continue to work with HYBE's Weverse to integrate more UMG signers into the superfan platform.
Braun scooter, CEO of HYBE America, will assume new responsibilities under the new agreement. The founder of SB Projects and former manager of Ariana Grande, Demi Lovato and J Balvin will now oversee all promotional and marketing partnerships between HYBE and UMG in North America.
Notably, this exclusive distribution deal excludes social media sites YouTube, Meta and TikTok, allowing HYBE artists to remain on the short-form video app despite UMG's current licensing dispute with TikTok.
The announcement builds on the already established relationship between HYBE and UMG that began in 2017 with a partnership that gave UMG distribution rights to HYBE's BTS In Japan. In late 2021, HYBE extended the deal to grant UMG's Geffen Records distribution rights for BTS in the United States and other territories, moving their US distribution from Sony Music's Columbia Records.
Geffen and HYBE also partnered through a joint venture to create the Netflix and YouTube streaming documentary series The debut: Dream Academy in which the two music companies collaborate to form an American girl group using HYBE's K-pop methodology.
Last year, BMG also transferred some of its distribution to Universal Music. In October, the company announced that it will transfer its physical distribution to UMG's Merchant Services division, starting in the second quarter of 2024. It will be fully transferred by the end of 2024.
“A partnership of this magnitude only comes together when both sides are equally committed to continuous development,” he says Bang Si-Hyuk, President of HYBE. “UMG is an iconic music label and together with HYBE, the possibilities are endless. We are confident that this will expand our global footprint while benefiting our fans, artists and record companies.”
“Chairman Bang, Scooter Braun and Jiwon Park have brought an innovative and progressive vision to the industry that highlights the global power of music,” he adds. Lucian Grainge, Chairman and CEO of Universal Music Group. “With the opportunities to engage superfans through the innovative Weverse model, we are excited to develop and expand our business partnership on the platform as we evolve together driving the evolution of the music industry.”
“This incredible partnership between our companies will ensure mutual benefits and partnerships for fans, bands, artists and labels around the world,” says Braun, CEO of HYBE America. “The opportunity created here not only allows us to help our current roster, but to develop opportunities for independent artists and labels worldwide. I have known and respected Sir Lucian Grainge for many years, and together with Chairman Bang and CEO of HYBE Jiwon Parkwe look forward to the undeniable opportunities that will arise from this partnership as we develop the future of the music industry together.”
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