What is Universal Music Group? History, Artists and More

There’s more to becoming a successful musician than just talent.

To gain the exposure that every musician aspires for, artists go through several challenges.

From building the right team to finding the right projects and inspiration, the process can be emotionally and mentally draining.

This is probably why most talented artists quit midway, and this also highlights the importance of adequate representation.

So what is Universal Music? What does it offer? Keep on reading to learn more.

What is Universal Music?

Universal Music Group or UMG is currently the world’s biggest music corporation.

It’s a Dutch-American organization with operational headquarters set in the US, and corporate headquarters set in the Netherlands, catering to the needs of multiple amateur and professional artists.

UMG is considered one of the biggest three record labels, with the other two being Warner Music Group and Sony Music.

It’s one of the most innovative music companies in the world, always searching for new artists in unexplored genres, refining their skills and providing them with the needed momentum.

This corporation is currently affiliated with more than 400 international platforms to help distribute and manage the work of the artists it represents.

For years, UMG has been actively shaping the music culture, by bringing specific names under the spotlight.

As a result, it’s safe to say that it’s one of the strongest driving forces in the music industry.

The corporation is run by a community of industry experts and entrepreneurs who specialize in producing, publishing, and managing audio content.

These experts scout for the most remarkable talents, even the ones that are difficult to spot and identify.

Then they provide the needed guidance to polish these talents and create a successful money-generating audio product.

At the same time, this company will approach already established songwriters and singers to offer them special deals to promote and distribute their music across several venues and platforms.

How Did Universal Music Evolve?

Universal Music was first launched under the American branch of Decca Records in 1934, a British record label that was established in 1929.

Later on, the company borrowed its name from Universal Pictures and continued to work under this name for decades, as part of MCA.

In 1996, the company was renamed as Universal Studios, and the music section was renamed Universal Music Group.

MCA continued to be the name of a record label within the UMG.

In 2004, UMG merged with NBC to form NBCUniversal, which also involves other entities like Universal Pictures.

In 2007, UMG purchased what later became Bravado, the entertainment section of UMG.

EMI sold all its recorded music to UMG in 2011, becoming one of the strongest names in the music industry.

This sale resulted in some controversy that pushed the EU to run an investigation to assess whether it would shut out competitors or not.

In 2012, the sale of EMI was approved in the US and the EU, under the condition that the newly merged company would share some of its power with other companies to eliminate the risk of monopoly.

What Are Universal Music Biggest Achievements?

In addition to acquiring some of the world’s most successful record labels, UMG has been working on expanding its work scope to add more divisions and actively change the world of music by creating audio and video productions that would appeal to all music lovers.

Here are some of the company’s biggest achievements.

• In 2008, UMG agreed to make its musical catalog available to Spotify, which was then considered a new streaming service. This allowed featured artists to reach international audiences quickly and efficiently.
• In 2013, it became the first record and music production company in the US to own the rights to all of the top 10 songs on the Billboard Charts.
• UMG received an award for its commitment to diversity by including several artists in its catalog.
• The company expanded into TV and film production in 2014 by purchasing Eagle Rock Entertainment. The company’s first production was a documentary called “Amy,” which won the Oscar for Best Documentary.
• In 2017, the company signed an exclusive deal with the Chinese social media and gaming firm, Tencent. During the same year, the company launched the Accelerator Engagement Network, which is an online initiative to help aspiring artists and music-based startups across the globe.
• It became the first record and music production company to sign a deal to license its recorded music for use and publication in videos and social experiences across Instagram, Facebook, and Oculus.
• By the end of 2017, Universal Music Group signed a multi-year license agreement with YouTube.
• In 2017, the song “Despacito” became the company’s most successful track of all time, breaking several Guinness World Records.
• In 2018, the Japanese division of Universal Music signed a deal with Disney Music Group to distribute its releases internationally.
• During the same year, UMG signed a deal with The Rolling Stones to handle all their past, current, and future audio and visual catalogs, in addition to their archive and brand management.
• By the end of 2018, UMG started an expansion in Africa to cater to the needs of the French-speaking markets.
• Queen’s “Bohemian Rhapsody”, which UMG owns the right to share and publish, became the most-streamed song on online platforms from the pre-streaming era. It also became the most-streamed classic rock song of all time.
• In 2020, UMG and YouTube collaborated to increase the video quality of more than 1000 music videos, releasing them in high definition.

Which Top Artists Currently Work with UMG?

As the most successful global representation, several artists choose to work with UMG to handle their future releases and put their names under the spotlight.

• Taylor Swift signed a deal with UMG to handle all her future releases, with a special clause in her contract that states that she has the sole ownership of her master recordings. The deal also stated that in case UMG sells its stake in Spotify, the proceeds will be divided among the artists, including Swift.
• Elton John signed a deal with Universal Music in 2018 to handle all the aspects of his music career with a contract that would allow the renowned musician to focus on creating his music peacefully. This included handling his catalogs and worldwide tours.
• One of the most influential rappers, Kendrick Lamar signed a deal with UMG in 2020. Currently referred to as “The New King of Hip Hop”, Lamar released his last album with TDE ending a two-decade partnership with the record label to cooperate with UMG.
• Bon Jovi moved to Universal Music, after ending his deal with Mercury Records. The band which has been touring the world and creating inspirational music for three decades is currently being managed by the group.
• Curtis “50 Cent” Jackson is currently running his multi-billion business with UMG. This includes producing new songs, as well as taking part in movies and videos.
• Demi Lovato, the famous singer and actress, is currently working with UMG to manage all future artistic projects.
• Lorde was one of the youngest artists who cooperated with Universal Music Group. She signed for UMG when she was a teenager and went on to produce several successful albums.
• The multi-Grammy Awards winner, Eminem signed for Universal Music Group. His deal was rather exclusive to include a worldwide administration and management of all his artistic endeavors.
• Drake signed a multi-million deal with Universal Music Group to manage all his audio and visual recordings, publishings, and merchandise.
• BTS, the famous South Korean boy band, is one of the latest additions to the Universal Music Group family.

What Are the Pros and Cons of Signing for Universal Music?

Signing for a big record label comes with a lot of benefits for both aspiring and established artists. However, some drawbacks need to be taken into consideration.

Pros

• A big record label like Universal Music has a dedicated team of experts who knows the secrets of the music industry. These experts are trained to deal with all the unplanned events that might take place.
• For an aspiring artist, UMG can seek successful collaborations with other talents in the industry to provide the artist with the needed push if they’re unable to reach their goals.
• UMG offers a large network of connections for current and future artistic projects, allowing the artist to expand on their production and explore new genres.
• With a devoted team of advisors, artists can focus on creating their music, instead of worrying about the managerial aspect of sharing and distributing it.
• The company can devote larger promotional budgets nationally and internationally, guaranteeing that the artist’s work will be easy to explore on multiple online and offline platforms.
• A big label like UMG can do business in bulk, eventually creating more music over a short period.
• The artist will receive the needed influence when it’s being managed by a big company.

Cons

• Unless the artist is very well-established, the contract terms will always favor the company.
• In some cases, the artist won’t have much control over the music they create.
• Limited personal attention will be given to aspiring artists, who actually need it the most.

With all these pros and cons, signing a deal with Universal Music is still considered to be one of the goals that many artists aspire for.