According to the announcement this morning (December 19), the deal will see the corporations collaborate to “improve music and commercial integrations throughout artist and fan experiences” on the platform.
UMG additionally mentioned that this “collaboration displays a shared dedication to accountable AI practices and to supporting the music and artists UMG represents”.
The deal consists of the integration of commercial options designed to “drive elevated engagement and income for artists and labels”.
Among these options is the means for artists and labels to promote digital andbodily merchandise to followers on the platform utilizing Shopify.
The means for UMG artists and labels to use Shopify for digital and bodily merchandise sales on the platform arrives amid the rising significance of D2C merch sales in the music business.
UMG’s Q3 earnings revealed a 23.1% YoY leap in income from bodily music sales, rising to €341 million (USD $398.31 million) in the quarter.
Universal’s management staff additionally revealed on the firm’s Q3 earnings name that two-thirds to 75% of vinyl sales come via UMG’s personal D2C shops.
UMG’s new deal with Roblox arrives amid a interval of “extraordinary development” for the gaming platform.
Roblox informed its shareholders in October that it exceeded 150 million Daily Active Users in Q3, up 70% YoY (see beneath).
UMG and Roblox say that they may “work carefully to streamline artist and label engagement inside the platform, offering direct artistic and operational help and entry to new Roblox instruments and beta options”.
The press launch added: “By aligning on the greatest pursuits of creators, Roblox and UMG are guaranteeing a platform atmosphere the place collaborating creators can confidently leverage their mental property alongside evolving platform improvements”.
UMG mentioned that it’ll proceed to roll out a sequence of artist activations throughout the platform over the coming months, starting with Stray Kids (JYP/Republic Records), which launches at this time.
Over the previous two years, UMG claims to have launched “a number of progressive business-first campaigns” straight on the Roblox platform.
These have included the launch of Beat Galaxy, UMG’s personal curated area for music discovery in 2023, and final 12 months noticed the launch of Boombox, with Styngr, which allowed licensed music streaming to be built-in into gaming experiences inside the platform for the first time.
Michael Nash, UMG’s EVP & Chief Digital Officer, additionally revealed at this time what he described as the “impending launch” of UMG’s flagship “Tastemaker expertise” on the platform.
Roblox has “more and more develop into a cultural hub for music fan engagement,” mentioned UMG, citing latest artist activations from the likes of Yeat (Capitol Records), Lady Gaga (Interscope), Chappell Roan (Island Records), Glass Animals (Polydor Records/Republic Records) and Sofi Tukker (Virgin Music Group).
“UMG’s strategic relationship with Roblox is constructed on shared aims of selling innovation, empowering artists and deepening fan engagement.”
Michael Nash, UMG
In making the announcement, Michael Nash, EVP & Chief Digital Officer, Universal Music Group, mentioned: “UMG’s strategic relationship with Roblox is constructed on shared aims of selling innovation, empowering artists and deepening fan engagement.
“With this new framework, we’re strengthening our commercial, artistic and operational collaboration and unlocking new opportunities for our artists and labels.
“Built on this basis and highlighted by the impending launch of UMG’s flagship ‘Tastemaker’ expertise, this settlement ensures that UMG continues to lead the business in shaping the way forward for music in immersive environments.”
“This strategic settlement represents a serious step ahead in constructing the way forward for immersive leisure, with this partnership considerably increasing the commercial and artistic opportunities for UMG artists and labels on our platform.”
Enrico D’Angelo, Roblox
Enrico D’Angelo, Chief Business Officer, Roblox mentioned: “We have labored carefully with Universal Music Group over the years to carry a few of their high artists to Roblox to have interaction with subsequent-gen followers in progressive and artistic methods.
“This strategic settlement represents a serious step ahead in constructing the way forward for immersive leisure, with this partnership considerably increasing the commercial and artistic opportunities for UMG artists and labels on our platform.”
