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Why the Major Labels Pivoted from Investing in Tech Startups to Old-School Music Companies


Here's why major labels are investing in music companies vs. tech startups and what that says about the music business post-pandemic.

In a few short years, the major labels have gone from investing in and partnering with speculative tech startups to pouring money into regionally focused music companies across Asia, Africa and Latin America. On Thursday (Oct. 31), UMG CEO Lucian Grainge dedicated much of his earnings call opening statements to the company’s efforts to expand into potentially lucrative markets that merited little attention before legal streaming services replaced digital piracy. Independent distributors such as UnitedMasters, Stem, Symphonic Distribution and Create Music Group have given artists a viable alternative to major label-owned systems.

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