I don’t really understand the Universal Music deal with TuneCore, but that’s probably because I don’t know much about the nuts and bolts of the record business. But maybe the value is in establishing a relationship, with an eye towards acquisition in the long run.

Think back to Yahoo! getting a chance to buy Google…

5 thoughts on “TuneCore/UMG

  1. Don’t think in terms of acquisition, Lucas. This is a relatively straightforward partnership: Universal gets to work with GuitarCenter, gets A&R channels previously closed to them, and a step into this new world.

    TuneCore artists get a chance to work with a major at no risk, and even to be wooed.



  2. Good to see you stop in, Peter.

    I dunno, these benefits (from UMG’s POV) make me think even more of acquisition. Developing connections with new-style music companies like TuneCore and Guitar Center is a no-brainer. They obviously can’t be Guitar Center, it’s just not their DNA, but they must be actively engaged in asking themselves how their own destiny is any different than TuneCore’s.

    Maybe the deal reflects internal politics at Universal…. As in, there’s some exec trying to influence the company’s direction…

  3. I just posted this in our own forums, so I’m cozy putting it here:

    Universal did NOT acquire us. I’m part owner of this company, I know. All that’s changed is that you will have a CHOICE to move into a major’s space.
    The TuneCore you’ve always known is here to say, as am I, Jeff and all the same principals who give you WORLDWIDE DISTRIBUTION for the cost of a pizza and a sixpack, and NEVER take your rights, masters, trademarks, or a cut of your earnings.

    Put that in the bank.


  4. Now that you mention it, not taking rights, masters, trademark, or a cut in earnings is probably a non-starter in a company that’s actively driving towards 360 deals.

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