UMG inks deal with Malaysia retail chain
Music Valley home entertainment catalog acquiredLONDON -- Universal Music Group has signed a deal with Music Valley, Malaysia's largest music retail chain, to acquire the domestic catalog of its music subsidiary MVM Home Entertainment. The deal also covers all artist agreements; terms were not disclosed.
The agreement was announced Monday by Pua Joo Siong, managing director of MVM Home Entertainment, and Sandy Monteiro, managing director of Universal Music Malaysia and senior vp of Universal Music South East Asia.
The agreement is effective Jan. 1 and covers MVM Home Entertainment's entire domestic music catalog, including all digital and public performance rights.
Music Valley's management team will continue to run the catalog and manage its roster of artists. Its key domestic artists are the Kristal band and singer Saleem, and its catalog includes hits by artists including Exist, Ahmad Nawab, Nassier Wahab, Ramlah Ram and Mega.
Since 2004, Music Valley, which claims a 5% share of Malaysia's music market, has been acquiring domestic catalogs, plus music and film rights, from various production houses and independent labels as part of the company's growth strategy.
A UMG statement says the Music Valley acquisition increases its overall market share, strengthening its position as the No. 1 record company in the country.
Sandy Monteiro said in a statement: "The acquisition of Music Valley's catalog is a strategic move which fast-tracks our involvement with domestic repertoire and strengthens our leading position in Malaysia's music market. Domestic repertoire sales have been resilient despite the overall downturn in the market, and the catalog, which has remained largely unexploited in the digital sphere, provides a significant engine of growth for us moving forward."
Pua Joo Siong added: "This deal is more like a partnership to better exploit Music Valley's catalog rather than an outright sale. We believe Universal Music is an excellent business partner and we look forward to working closely with them to ensure that this is a win-win deal for both companies and all our artists."