The Saban Music Group has announced that it has reached a global distribution and marketing deal with Universal Music Group (UMG), which comes six months after billionaire Haim Saban pledged $500 million for the new label.
The agreement calls on Caroline International, which is a subsidiary of UMG’s Capitol Music Group, to distribute Saban Music Group content throughout the United States. Saban will work with UMG’s central services for all other territories.
Since its launch last July, the Saban Music Group — which is run by Gustavo Lopez — has been busy signing artists and developing content from them. Haim Saban’s $500 million pledge further included the future acquisition of recording, publishing and management entities.
That half-a-billion dollar commitment is just one of several massive capital injections for the music industry.
Caroline, which is led by President Jacqueline Saturn, provides a range of distribution and label services for not only UMG’s artists but also for artists of its label partners. The company also attempts to broaden various revenue streams for its partners.
The first fruits of the new partnership will come about on January 10. It is then that Static & Ben El will release “Further Up.” The song also features Pitbull.
All parties involved in the deal commented on it.
Sir Lucian Grainge, who is the chairman and the CEO of UMG, said, “Haim has a proven track record of creating world-class entertainment. We’re looking forward to working with his team at Saban Music to bring groundbreaking new artists and music to fans around the globe.”
Haim Saban said, “Sir Lucian has built the #1 music company in the world with an unprecedented streak of artist development. There is no better home for our artists and their music.”
Lopez added, “It’s exciting to once again work with UMG, my home for more than 20 years. We’re looking forward to working with Sir Lucian’s record-breaking and industry-leading teams.”