Bose Establishes New Media Company and Record Label

Bose is venturing into the entertainment industry by launching Bose Studios, a new media company that includes the creation of a record label. This move signifies a shift in the audio-equipment maker's strategy, moving away from campaign-driven marketing towards an in-house content studio.

The core of this expansion is Bose Records, a new record label. According to Bose CMO Jim Mollica, the label's objective is to help break new or underappreciated artists. The company does not intend to compete directly with major label conglomerates. Bose will not seek to own artists' masters, take a share of their record sales or streams, nor restrict them from signing with other labels. A key benefit for Bose will be avoiding music rights payments when featuring these artists in commercials.

Beyond the record label, Bose Studios plans to commission original TV series and films, which will involve what Mollica described as "legendary Hollywood names." Additional projects include a YouTube series, podcasts, and live music events. The company is also considering the acquisition of a music media company, with some content expected to generate its own advertising revenue.

This strategic change reflects current market realities, including rising ad prices, fragmented audiences, and consumers actively avoiding advertising. Social media algorithms and AI search are also disrupting traditional brand discovery methods. Bose aims to integrate deeper into the music experience, with Mollica stating, "Ultimately Bose is not an audio-equipment business anymore. We're about deepening people's relationship with music."

Bose has previously engaged in music-focused marketing partnerships, such as collaborating with Blackpink's LISA for customized earbuds and teaming up with Grammy-nominated Twitch streamer PlaqueBoyMax for a live music creation event. According to Alexandra Annable, founder of Holl'r Music, for Bose to succeed, aligning with a specific genre could be beneficial. Steve Ackerman, a board advisor and consultant to media and entertainment businesses, emphasized the importance of prioritizing content over product promotion.

Mollica, with a background at Disney and Viacom, stated that Bose Studios is not working with advertising agencies and is instead recruiting and partnering with talent from the film, TV, podcast, and publishing industries.

According to Business Insider, some other brands, like Red Bull and Starbucks, have launched music labels in the past, though these ventures were eventually retired.