According to the announcement this morning (December 19), the deal will see the companies collaborate to “enhance music and commercial integrations across artist and fan experiences” on the platform.
UMG also said that this “collaboration reflects a shared commitment to responsible AI practices and to supporting the music and artists UMG represents”.
The deal includes the integration of commercial features designed to “drive increased engagement and revenue for artists and labels”.
Among those features is the ability for artists and labels to sell digital andphysical merchandise to fans on the platform using Shopify.
The ability for UMG artists and labels to use Shopify for digital and physical merchandise sales on the platform arrives amid the growing significance of D2C merch sales in the music industry.
UMG’s Q3 earnings revealed a 23.1% YoY jump in revenue from physical music sales, growing to €341 million (USD $398.31 million) in the quarter.
Universal’s leadership team also revealed on the company’s Q3 earnings call that two-thirds to 75% of vinyl sales come through UMG’s own D2C stores.
UMG’s new deal with Roblox arrives amid a period of “extraordinary growth” for the gaming platform.
Roblox told its shareholders in October that it exceeded 150 million Daily Active Users in Q3, up 70% YoY (see below).
UMG and Roblox say that they will “work closely to streamline artist and label engagement within the platform, providing direct creative and operational support and access to new Roblox tools and beta features”.
The press release added: “By aligning on the best interests of creators, Roblox and UMG are ensuring a platform environment where participating creators can confidently leverage their intellectual property alongside evolving platform innovations”.
UMG said that it will continue to roll out a series of artist activations across the platform over the coming months, beginning with Stray Kids (JYP/Republic Records), which launches today.
Over the past two years, UMG claims to have launched “several innovative industry-first campaigns” directly on the Roblox platform.
These have included the launch of Beat Galaxy, UMG’s own curated space for music discovery in 2023, and last year saw the launch of Boombox, with Styngr, which allowed licensed music streaming to be integrated into gaming experiences within the platform for the first time.
Michael Nash, UMG’s EVP & Chief Digital Officer, also revealed today what he described as the “impending launch” of UMG’s flagship “Tastemaker experience” on the platform.
Roblox has “increasingly become a cultural hub for music fan engagement,” said UMG, citing recent artist activations from the likes of Yeat (Capitol Records), Lady Gaga (Interscope), Chappell Roan (Island Records), Glass Animals (Polydor Records/Republic Records) and Sofi Tukker (Virgin Music Group).
“UMG’s strategic relationship with Roblox is built on shared objectives of promoting innovation, empowering artists and deepening fan engagement.”
Michael Nash, UMG
In making the announcement, Michael Nash, EVP & Chief Digital Officer, Universal Music Group, said: “UMG’s strategic relationship with Roblox is built on shared objectives of promoting innovation, empowering artists and deepening fan engagement.
“With this new framework, we are strengthening our commercial, creative and operational collaboration and unlocking new opportunities for our artists and labels.
“Built on this foundation and highlighted by the impending launch of UMG’s flagship ‘Tastemaker’ experience, this agreement ensures that UMG continues to lead the industry in shaping the future of music in immersive environments.”
“This strategic agreement represents a major step forward in building the future of immersive entertainment, with this partnership significantly expanding the commercial and creative opportunities for UMG artists and labels on our platform.”
Enrico D’Angelo, Roblox
Enrico D’Angelo, Chief Business Officer, Roblox said: “We have worked closely with Universal Music Group over the years to bring some of their top artists to Roblox to engage with next-gen fans in innovative and creative ways.
“This strategic agreement represents a major step forward in building the future of immersive entertainment, with this partnership significantly expanding the commercial and creative opportunities for UMG artists and labels on our platform.”
