Reservoir takes a minority stake in China and India market specialist Outdustry

By Emmanuel Legrand

New York-based independent music company Reservoir has taken a minority share in Outdustry, a music rights and marketing services company which is primarily operating in China and India. The companies have also formed a joint venture to sign and develop Chinese artists and songwriters, and also acquire local music catalogues. 

   This new investment builds on a June 2020 sub-publishing agreement, in which Outdustry Songs became the exclusive sub-publisher in China for Reservoir’s catalogues. 

  Reservoir said the investment will allow Outdustry to "build on its successes in China and India and extend its strategy to other emerging music markets." Reservoir said its investment in Outdustry "will enable the companies to capture more value from high-growth territories by building on Outdustry’s unique capabilities in directly monetising complex music markets as well as its market-leading A&R and marketing work."

  Founded by Ed Peto, Outdustry has become a key partner for music companies in China. The company has direct deals at all major Chinese music services, relationships with the local talent industry, and the infrastructure to administer rights.

  Reservoir Founder and CEO Golnar Khosrowshahi said, “We are confident that expanding our partnership with Outdustry will build on our incredible success together to date and deepen our presence in emerging markets.”   

  "At Outdustry we have always prided ourselves on our independence, our artist-first approach, and our belief in a better music industry no matter where we are in the world," said Peto. "Reservoir has exemplified all these things for over a decade, making this partnership a perfect alignment, while allowing Outdustry to take the next steps on our ambitious journey."

  This is not Reservoir’s first investment in fast-growing territories and emerging markets, as the company set up a joint venture with leading MENA music publisher PopArabia, led in a dual role by PopArabia Founder and President and Reservoir EVP of International and Emerging Markets Hussain “Spek” Yoosuf.   

  “Outdustry joins PopArabia as one of our trusted partners on the ground in these emerging markets, expanding our footprint ahead of what is projected to be exponential growth,” said Spek. 

  Reservoir is planning to become  a publicly traded company listed on the Nasdaq, via an agreement with Roth CH II ($ROCC), a special purpose acquisition company (SPAC).