(Bloomberg) — Universal Music Group NA has struck a distribution deal with Hybe Co., acquiring rights to the South Korean company’s celebrity roster, which includes BTS, Lil Baby and Thomas Rhett, and building a deeper tie-up with social media app Weverse contact.
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Universal, the world’s largest music company, said on Tuesday it signed a 10-year agreement to become the exclusive distributor of Hybe artists’ music in most of the world. Additionally, Universal will invest in the fan-focused Weverse messaging app, according to the companies.
Hybe’s shares rose 9.1% in Seoul, their biggest intraday gain since August. The agreement will help both companies expand their global market share. Seoul-based Hybe has been releasing more English-language songs for K-pop groups and promoting artists including Jung Kook in the United States. In recent years, global artists including Taylor Swift have toured Asia with increasing frequency.
“We are confident this will expand our global footprint while benefiting our fans, artists and labels,” Hybe founder and chairman Bang Si-Hyuk said in a statement.
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As part of the agreement, the two companies will collaborate on artist promotion and marketing activities in North America, led by Hybe America CEO Scooter Braun.
Hybe’s US acquisitions include country record label Big Machine Records and Atlanta-based Quality Control Music rap label.
Universal will distribute physical and digital music by Hybe artists globally, except in South Korea, China and Japan, and on certain social media platforms such as TikTok, Meta and YouTube.
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Attracting their most loyal fans through social media has become a core part of how musicians promote their names and albums online. By partnering with Weverse, a subsidiary of Hybe, Universal Pictures will give its artists greater access to fans around the world, especially fans in Asia.
Weverse offers numerous fan-related services, including ticketing, live concert streaming, and merchandise sales. It has more than 10 million monthly active users.
Read more: K-pop company behind BTS wants to take its superfan app global
Hybe and Universal began collaborating in 2017 through BTS’s distribution agreement in Japan. They expanded the deal in 2021, with Universal’s Ingrooves Music division handling distribution, and Universal’s Geffen Records providing creative support and marketing.
Under the partnership, they also formed a joint venture to create a new K-pop style girl group targeting the U.S. market. Katseye will debut later this year
Universal Pictures’ Interscope has inked a three-year deal with YG Entertainment Inc. for K-pop girl band Blackpink, which has established itself with Western audiences, performing at the Coachella music festival in 2019 and made headlines last year. Hybe’s girl group Le Sserafim will perform there for two days in April.
(Updates with Hybe’s earnings and founder’s comments in third paragraph)
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