Virgin Music Group (VMG) has acquired Beijing-based Outdustry, a music services and rights management company, while appointing its founder Ed Peto as head of international strategy. This strategic acquisition strengthens VMG's presence in the growing Chinese music market.

Key points of the acquisition:

• Outdustry Records becomes an affiliated label of VMG
• Outdustry Songs publishing unit becomes an imprint of UMPG
• Marketing services continue under the Outdustry brand
• Ed Peto maintains leadership of his 20-person team while taking on new VMG role in London

Outdustry's track record includes marketing for major artists like Adele, Dua Lipa, Laufey, and Diplo in both Chinese and Indian markets. The company also runs Merlin operations in China.

This acquisition reflects Universal Music Group's broader strategy to expand in emerging markets, particularly China, where the recorded music market continues to show significant growth. However, challenges remain in the Chinese market, including content censorship and restricted artist access, as noted by Live Nation CEO Michael Rapino.

The move follows VMG's recent expansion efforts, including their acquisition of Saban Music Latin in early 2024, demonstrating their commitment to global market development.

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