Universal Music Groups’ New Innovative Business Plan

Universal Music Group may have its hands on the next great business idea.  With YouTube bringing you hits like Gangnam Style and Harlem Shake, UMG is now looking to capitalize on those songs.  UMG wants to begin a new label, All Def Music, to market and promote these internet sensations.

This is a brilliant move by UMG.  If you YouTube Gangnam Style, you will find many different varieties of the video all of which having millions of views.  The Harlem Shake trend had millions of teams, offices, universities, kitchens, etc. providing their own rendition of the video and putting it on YouTube for millions of people to check out.  YouTube is the number one video site that users go to, and UMG is at the forefront of turning in those views for dollars.

Many of these YouTube stars know what they are doing, putting themselves out there to gain exposure.  Hoping some talent agent who they can’t find, finds them.  UMG is trying to get into a potential gold mine and they will need to do it with the right team.  I believe they are set up for a bright future with the team they have assembled.  UMG is working with Russell Simmons, veteran hip-hop exec Steve Rifkind, and the founder of children’s YouTube Network AwesomenessTV Brian Robbins.

Many people think that to rely on YouTube sensations may be a huge risk, but UMG goes beyond just YouTube stars.  They focus on emerging artists as well.  One of their clients is Spoken Reasons, who has more than 1.3 million YouTube Subscribers.  Other more established artists they work with are British singer Alex Day and British bass-music brand UFK.

The fact that YouTube is known globally is a huge asset to UMG.  It essentially cuts down on their talent search in terms of attending shows across the country or visiting another country to see an artist play.  From one remote location on the planet, they are able to identify a potential client from millions of miles away for as long as they have uploaded their video to YouTube.

Overall, Universal Music Group has the potential to explode as a new record label.  With YouTube being a great outlet to reach musicians, the possibilities for UMG are endless.  I think the label has brought on some great leaders in Russell Simmons, Steve Rifkind, and Brian Robbins to help steer this label in the correct direction.  At any moment, the next Gangnam Style video can be upon us, and I think UMG will capitalize on it.

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Filed under Reggi Hopkins

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