Transcript
Introduction
Patrick
Today we're breaking down Universal Music Group. It's one of the largest music businesses in the world. UMG is home to many of the world's greatest artists, including Taylor Swift, U2, and the Beatles Catalog. The discussion on UMG requires a deep dive into the history of music itself, how it was historically monetized, the shift from physical to digital and what streaming has meant for various pieces of the ecosystem. Our guest, Arman Gokgol-Kline, a partner and investor at Ruane, Cunniff & Goldfarb, walks us through that evolution of the music industry before we dive in on UMG. In our discussion, we first break down the industry pre and post-Napster, looking at the ways music was sold historically and that led to both record profits and a consumer revolution. We then assessed streamings impact on the industry and how contrary to what you might think, labels may be more important in a marketplace where it's easier than ever for creators to record and release music. Finally, we finished with UMG's place in the ecosystem, the primary drivers of the business, how they're able to attract the world's superstars and how they think about deploying dollars to acquire new artists and timeless catalogs. Please enjoy this fantastic breakdown of Universal Music Group.