New York – October 16th, 2019 – Donald Malter, commenting yesterday described the latest investments in mainstream music by such Tech Giants TenCent and Chinese Ecom giants Alibaba Group as extremely exciting.
TenCent have recently struck an agreement with Vivendi to purchase 10% of Universal Music, the Worlds largest Music Organisation with a further option to acquire a further 10% whilst Alibaba group have just “inked” an agreement to acquire a $700 million stake in NetEase.
“What these Companies bring to the table, as well as much welcomed liquidity, is knowledge of operating in markets hitherto relatively untouched by conventional Western Music Companies,” Donald Malter said and went on to add, “The use of technology adds a whole new dimension to production of new music nowadays.”
With global forecasts of the growth in the Chinese market alone set to outstrip the USA by a figure of 5 times as much in the foreseeable future this has brought about a much needed change in outlook from western music companies. Hence the common sense approaches in partnering with organisations that already have an existing major presence within these markets.
“The strategic cooperation of such organisations like TenCent with their micro video platform TikTok keeps Universal (if not others as well) abreast of some of the latest technologies available and also how to take advantage fully of new opportunities as and when they arrive,” says Donald Malter.
The world of Entertainments and Music is changing at such a rapid rate that it is vital for all participants in the Industry to keep abreast of all developments.
Donald Malter over the past 35 years has worked for, Elektra Records (Warners), Zomba Music (SONY), Verve (Universal Music Group), BMG Chrysalis (BMG Music) as well as numerous other clients. He is an “in demand” Consultant specialising in introducing Private Equity Investment into Entertainment Projects.