Universal Music Group has agreed to acquire majority control of Thailand’s RS Group, a stock market-listed music distributor and artist management group.
RS Group holds the second largest music catalog in Thailand, according to a press release on Friday, comprising over 10,000 master recordings, 6,000 copyright ownerships, publishing rights, and licenses spanning from 1981 to 2022.
The catalog represents more than 960 artists including Thai artists such as Dan-Beam (pop duo), James Ruangsak Loychusak (pop), Parn Thanaporn Wagprayoon (ballad diva), Stone Metal Fire (90s rock band), Ble Patumrach (country), Lydia Sarunrat Deane (R&B queen), Thanapol Intharit (rock), and Four-Mod Kamikaze (pop).
According to an investor filing from RS Group on Friday (June 30), the transaction is valued at $45.5 million (THB 1.613 billion) and is expected to close in Q3 2023. The filing adds that RS “may receive additional consideration” from UMG of up to $4.9 million (THB 173.8 million).
RS Group, founded in 1982, secures and manages broadcasting rights of international sports programs. It also produces TV series and variety programs in Thailand.
The acquisition will serve as the cornerstone of a new strategic partnership between RS Group and UMG, which will be 70% owned by UMG and 30% by RS Group.
The new partnership will offer UMG an enhanced presence in Thailand. According to the IFPI‘s Global Music Report 2022, Thailand’s recorded music sector experienced a 20% revenue growth in 2022, surpassing $100 million for the first time.
Upon the completion of the deal, UMG will become RS Group’s exclusive music service partner for new releases and music repertoire worldwide. Additionally, UMG will have exclusive rights of first refusal and matching rights to acquire new releases and repertoire.
The deal marks UMG’s latest venture in Thailand after forming a strategic deal in July 2022 with Thai record label HYPE TRAIN GROUP to introduce T-Pop to global audiences. HYPE TRAIN GROUP launched in late 2020, with Universal Music Thailand as its exclusive distributor.
At the time, Universal Music Thailand announced the exclusive global signing and launch of an “all-star” Thai girl group called LYRA.
“I am extremely excited about the expanded role that this partnership will enable UMG to play in such a fast-growing and important music market.”
Calvin Wong, Universal
Calvin Wong, Chief Executive Officer, Universal Music Southeast Asia & Senior Vice President of Asia said: “I am extremely excited about the expanded role that this partnership will enable UMG to play in such a fast-growing and important music market.”
“Thailand has huge untapped potential, with consumers who desire ever more quality music. Today’s announcement will provide UMG with the scale to make a meaningful impact within the Thai music ecosystem and to benefit from its continued growth.”
“Thailand has huge untapped potential, with consumers who desire ever more quality music. Today’s announcement will provide UMG with the scale to make a meaningful impact within the Thai music ecosystem and to benefit from its continued growth.”
Surachai Chetchotisak,RS Public Co. Ltd.
Surachai Chetchotisak, Chief Executive Officer, RS Public Co. Ltd., added: “RS Music will partner with world-class Universal Music Group (UMG) to form a joint venture to manage all RS’ music copyrights. UMG is the world’s largest music company with vision and leadership in the music industry.”
“We are glad to partner with UMG, as a mean to expand opportunities for Thai music in the international market. It will also play a significant role in driving Thai soft power and mark the first stepping stone for future projects and businesses. This joint venture will create opportunities within music industry and strengthen RS Music even further.”
