Universal Music Group: The Gatekeepers of Music - [Business Breakdowns, EP. 32]

Today we’re breaking down Universal Music Group. A discussion on UMG requires a deep dive into the history of music itself, how it was historically monetized, the shift from physical to digital, and what streaming has meant for the various pieces of the ecosystem.

Our guest is Arman Gokgol-Kline, a partner and investor at Ruane, Cunniff & Goldfarb
 
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes...

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Show Notes
[00:00:00] - Introduction
[00:03:28] - [First question] - How technology disrupted the music business and it’s evolving history
[00:12:11] - What the industry of music labels looks like from the 90s to today
[00:20:46] - How it feels as a high-tier artist to engage with a label directly today
[00:27:47] - The revenue and business model of an artist akin to Taylor Swift
[00:30:11] - The differences between UMG's main sources of revenue; music publishing and recording
[00:34:35] - General margins and trends for music publishing
[00:35:49] - Ownership and mechanics of monetizing an artist’s Intellectual Property 
[00:40:24] - How streaming revenues are divided among stakeholders
[00:45:50] - History of the bargaining power of labels and streaming platforms
[00:50:52] - Capital allocation, ROI, and acquiring IP and catalogs
[00:57:06] - Thoughts on the growth profile of the industry as an investor
[01:01:50] - Potential risks to UMG from emerging technology and new creator trends 
[01:08:17] - Reasons why an artist would pick UMG over other major labels
[01:12:09] - Diversity and how artists are sometimes treated by labels
[01:13:31] - A growing increase in music consumption across the world

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