January 26, 2008

Call it what you want -- the commodification of music, alternative revenue streams, the coming of the apocalypse -- but Universal Music Group has been extending its non-recorded music revenues. Last year we heard about the deal the Pussycat Dolls inked with toymaker Hasbro. (And UMG has released music under the Bratz brand, which is a toy line by MGA Entertainment.) Late last year UMG purchased Sanctuary Music Group, which does merchandise as well as publishing and artist management.

And there's alcohol, too. Found in yesterday's SB-2 filing (used by small businesses to register securities to be sold for cash) by Drinks America Holding Ltd:

We have also entered into a joint venture (50% each) with Interscope Geffen A&M, of Universal Music Group, to commercialize and market jointly owned alcoholic and non alcoholic beverage products in collaboration with artists under contract with Interscope Geffen A&M.

Financial details of the two companies' partnership were not disclosed when it was announced in June 2007. Later in the filing, the company describes its long-term business strategy as expanding the sale and distribution of its "celebrity and icon alcoholic and non-alcoholic beverage portfolio" and cites its "limited working capital" available for building new brands (which is why a joint-venture is good).

An article last year at The Street said the deal would "give artists an equity stake in new products that are jointly developed."

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Posted by Glenn at 8:15 AM | |