UMG Identifies Nigeria And South Africa As ‘High-Potential’ Markets

In a bold push to dominate emerging music markets, Universal Music Group (UMG) continues its aggressive expansion strategy, focusing on high-growth regions considered as high-potential markets like Nigeria and South Africa. The global music giant’s intent was laid bare at its Capital Markets Day (CMD) presentation last week, where UMG CEO and Chairman, Sir Lucian Grainge, spotlighted these African powerhouses as part of a broader global strategy to scale operations in regions primed for a streaming boom.

UMG’s recent acquisition of the entire music catalogue from Thailand’s RS Group underscores its commitment to snapping up key assets in these emerging territories. After initially purchasing 70% of RS Group’s catalogue last year for around USD $45 million, UMG has now completed the acquisition with a final 30%, bringing the total to an estimated $65-$70 million. And this is just the tip of the iceberg.

Grainge revealed UMG’s “triple-prong” approach in these markets: local A&R talent scouting, entrepreneurial services via Virgin Music Group, and strategic M&A activity. The goal? Leverage regional growth opportunities, especially as streaming revenues are expected to surge across territories like Nigeria, South Africa, India, and Vietnam.

For the African market, UMG’s vision is already in motion. Having acquired a majority stake in Nigeria’s Mavin Records in 2023, the company is now laying the groundwork for further investments across the continent. As Grainge highlighted, these efforts are aimed at smaller, but highly promising companies—enterprises that have so far had full autonomy, but now stand to benefit from UMG’s global infrastructure and expertise.

As UMG shifts its acquisition strategy towards emerging markets, including the likes of Argentina, Vietnam, Indonesia, and others, Africa’s leading music industries—Nigeria and South Africa—are poised to play a central role in the label’s next wave of global growth. With the world’s second-largest continent experiencing rapid digital adoption, especially in music streaming, UMG is well-positioned to capitalise on Africa’s burgeoning potential.