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Next Generation Record Label to Provide Soundtrack to NBA’s Top Plays
UnitedMasters and the National Basketball Association have announced a deal that will give the league authorization to use the music published by UnitedMasters artists in highlight videos across all “digital properties and (its) social community of 1.5 billion”; the songs may also be used within in-arena highlights packages. The NBA’s partnership with the music distribution service will provide fans with “a new way to discover music”, as posts on social media will document the artist’s name and song title and provide a link back to the song and artist. UnitedMasters was founded by former Interscope EVP Steve Stoute, who envisioned the platform serving as the “next iteration of what a record label should be”; one that enables artists to connect more directly with their fans while maintaining ownership of their music.
Howie Long-Short: UnitedMasters, which offers up and coming artists a platform for distribution, wants their music placed on a variety of platforms (think: video games, influencer videos) that together will meet or exceed terrestrial radio’s reach; and this deal furthers that mission (even if the NBA isn’t paying for spins). The company’s standard business model entitles artists keep 90% of the revenue generated in royalties, while the company retains 10% as a distribution fee.
UnitedMasters’ up-and-coming independent artists are big winners in this deal (again, even if they’re not being paid each time their song is played). The league’s social channels offer “a global digital stage” (see: NBA highlights receive 19 billion impressions/year) that can be used to build a fan base; and once they do, they can begin to establish lucrative brand partnerships. They’ll also be able to sell both concert tickets and merchandise directly to their new fans.
As for the league, they’ll save on major label licensing rights. It would be reasonable to assume they’re also entitled to a portion of any sales originating through their channels, though no financial details were released.
There are 2 ways to play UnitedMasters; Alphabet (GOOGL) led the company’s $70 million Series A round back in November ’17 and 20th Century Fox (FOXA) invested alongside them.
Fan Marino: While we’re discussing NBA news, Golden State introduced a new monthly ticket offering that will provide fans with entry to all home games (and the right to team giveaways) for just $100. There’s just one catch, the ticket does not actually come with a view of the court. The Warriors “In the Building Pass” simply gives the holder the right to convene in one of the arena’s bars/restaurants, overpay for a few beers and catch the game on television; which is delayed relative to the crowd cheering/booing. Howie seems to think everyone won in the NBA’s deal with UnitedMasters, but there are going to be clear losers with this arrangement and they’re going to be Warriors fans.
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JohnWallStreet, located at the intersection of sports and finance, is a destination for the educated sports fan.
While we won’t be publishing “hot takes” on LeBron’s relative greatness to Jordan, we will be offering up the most relevant sports related business news, in easily digestible bites, with commentary from both the sports money and sports fanatic perspectives.
We’ll cover publicly traded professional teams & stadiums (MSG, RCI, BATRA, MANU), television networks (DIS, FOXA, CMCSA, CBS, TWX, MSGN), apparel & footwear companies (NKE, UAA, ADDYY, FL, LULU), equipment companies (GOLF, ELY, FIT), ticketing companies (EBAY, LYV) content and facilities providers (CHDN, DVD, ISCA,TRK, LMCA). If it trades on Wall Street, and has a sports angle, it’s in our wheel house.
Howie Long-Short and Fan Marino will be providing their expert opinions on each story. They have slightly different areas of expertise. Fan Marino is a firm believer that the SEC is the premier football conference. Howie Long-Short knows it as the Securities & Exchange Commission. Fan Marino lives and dies with the college selection of 5 star, blue chip recruits. Howie Long-Short spends his days analyzing blue chip stocks. Howie Long-Short knows that Black Monday occurred on October 19th, 1987. Fan Marino swears it happens every January after Week 17. You get the point.