Universal Music Group (UMG) has expanded into China’s Greater Bay Area with the launch of a dedicated label division, Universal Music China Greater Bay Area (UMCGBA).
UMG says the move makes it the “first” major music company to establish a label in this region, headquartered in the city of Shenzhen, also dubbed as “China’s Silicon Valley.” The new division will operate under Universal Music Greater China (UMGC), which now has offices in Beijing, Hong Kong, Shanghai, Shenzhen, and Taiwan.
The Greater Bay Area, covering nine cities in Guangdong province and the special administrative regions of Hong Kong and Macau, boasts the world’s largest urban population. Contributing over 11% to China’s GDP in 2023 and boasting a population of over 86 million, the GBA represents a crucial market for the music industry. Notably, the region accounts for nearly a quarter of China’s music performance revenue.
The new division will be led by Gary Chan, who currently serves as Managing Director of Universal Music Hong Kong and Senior Vice-President of UMGC. He joined UMG in November 2023 after an over three-decade career in the music and entertainment industry, with roles at IFPI Hong Kong, WarnerMusic Hong Kong, EMIMusic Hong Kong, and Media Asia Group Holdings.
“The launch of UMCGBA represents a strategic expansion, leveraging the vast market potential and unique cultural atmosphere of the Greater Bay Area.”
Timothy Xu, Universal Music Greater China
UMCGBA will form a local team dedicated to marketing, A&R, and artist management. Beyond talent discovery and development, the new label division also aims to engage with the broader entertainment landscape, offering new and immersive experiences for global audiences.
Timothy Xu, Chairman and CEO of Universal Music Greater China, said, “The launch of UMCGBA represents a strategic expansion, leveraging the vast market potential and unique cultural atmosphere of the Greater Bay Area.”
“We eagerly anticipate welcoming the outstanding talents from this region to join us in driving forward, the next era of Chinese pop music. In this pursuit, we are setting our sights on transforming the GBA into a trendsetting hub that epitomizes creativity, vitality, and connectivity, crafting fresh musical expressions and innovative entertainment experiences.”
Adam Granite, Executive Vice-President, Market Development of Universal Music Group, added: “Our commitment to the Greater Bay Area is part of UMG’s global strategy to invest in localand regional music scenes, particularly in rapidly growing markets like China.”
“By deepening our roots in local cultures and enhancing support for local artists, we aim to elevate the Chinese music landscape and introduce its unique sounds on the world stage.”
The move marks UMG’s latest strategic move in Greater China after partnering with TF Entertainment, a powerhouse in China’s pop music scene or C-Pop, in April to elevate C-Pop’s presence globally and propel TF acts like TFBOYS and Teens In Times (时代少年团, TNT) to international audiences.
In January, UMGC signed a multi-year licensing agreement with Chinese streaming giant Tencent Music Entertainment to provide the latter with access to UMG’s music catalog for QQ Music, Kugou Music, Kuwo Music, and WeSing.
UMG’s continued expansion comes as the company targets a 7%-plus CAGR in overall revenues between FY2023 and FY2028, and for subscription streaming revenue to grow at a CAGR of somewhere between 8% to 10% at constant currency in the same period. In FY2023, UMG’s overall revenues jumped11.1% YoY at constant currency to EUR €11.108 billion (USD $12.34 billion).
