Warner Music Group buys digital media firm Uproxx, in a bid to tap into youth culture
Warner Music Group has bought Culver City digital media company Uproxx in a bid to better reach young people online, the record label said Thursday.
Warner Music, known for such artists as Ed Sheeran and Bruno Mars, did not disclose financial terms of the transaction. But a person involved in the deal, who was not authorize to comment, said the New York company paid “less than $100 million” for Uproxx, which says it has an audience of about 40 million people.
Uproxx — known for its network of news, culture and entertainment sites catering to young-adults — makes money with “branded content,” including sponsored videos and articles that take the place of traditional advertising. Uproxx Chief Executive Benjamin Blank and co-founder Jarret Myer will continue to run the operation, Warner said.
Owning Uproxx will give Warner access to troves of data to help it better understand how audiences respond to its music and videos, and what goes viral on social media sites such as Facebook and Twitter. Warner also plans to use its roster of artists and Uproxx’s robust video production studio to create content for the web, such as short documentaries and video series.
“We aim to tell engaging and original stories that influence culture,” Max Lousada, Warner’s chief executive of Global Recorded Music, said in a statement.
The deal comes as record labels increasingly look to the online media space to expand their businesses and stay relevant to young, social media-obsessed listeners who get their music through streaming services such as Spotify and Apple Music.
Uproxx is the latest digital media acquisition for Warner Music, owned by billionaire Len Blavatnik’s Access Industries. The company last year purchased concert recommendation app Songkick, which has 15 million monthly users. The label also recently launched Firepit, a production studio in Britain. The Uproxx acquisition does not include the young male-focused website BroBible.
Warner’s digital expansion underscores how the booming streaming music market has revived the recorded music business, generating a remarkable recovery for an industry that was wrecked by illegal downloads at the turn of the century. Global music revenues grew 8% to $17.3 billion in 2017, according to industry group IFPI. Warner Music Group reports earnings for its fiscal third quarter next week.
This week French media conglomerate Vivendi said it was looking to sell up to 50% of its Universal Music Group to capitalize on the growth of the business.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
