Universal Music Group has struck an agreement to acquire majority control of the second largest music catalog in Thailand, one of the fastest growing music markets in Asia.
It is buying 70% of the music catalog of RS Group, a stock market-listed music distributor and artist management group.
In its regulatory filing, RS group said that UMG is paying $45 million (THB1.61 billion) for the stake and that earn-out payments could lift this by a further $44.9 million (THB174 million). The deal is expected to close in the third quarter of the year.
The music catalog will then form the core of a new partnership between UMG and RS Group with UMG becoming RS Group’s exclusive music service partner for new releases and new music repertoire worldwide. UMG will also receive exclusive rights of first refusal and matching rights to acquire new releases and repertoire. UMG will become the second-largest player in the Thai music market.
Thailand’s recorded music sector’s revenue grew by 20% in 2022 to surpass $100 million for the first time ever according to IFPI’s Global Music Report, 2022.
The RS catalog comprises more than 10,000 master recordings and 6,000 copyright ownerships, publishing rights and licenses dating from 1981-2022 and represents the work of more than 960 artists. Notable Thai acts included in the catalogue are, Dan-Beam (pop duo), James Ruangsak Loychusak (pop), Parn Thanaporn Wagprayoon (ballard diva), Stone Metal Fire (90s rock band), Ble Patumrach (country), Lydia Sarunrat Deane (R&B queen), Thanapol Intharit (rock) and Four-Mod Kamikaze (pop).
“I am extremely excited about the expanded role that this partnership will enable UMG to play in such a fast-growing and important music market. Thailand has huge untapped potential, with consumers who desire ever more quality music,” said Calvin Wong, CEO, Universal Music Southeast Asia & senior VP of Asia. “[The] announcement will provide UMG with the scale to make a meaningful impact within the Thai music ecosystem and to benefit from its continued growth.”
“We are glad to partner with UMG, as a means to expand opportunities for Thai music in the international market. It will also play a significant role in driving Thai soft power and mark the first stepping-stone for future projects and businesses,” said Surachai Chetchotisak, CEO of RS Public Company Limited.
