Bose is becoming a media company

Bose wants a bigger chunk of the music business.

The audio-equipment maker has created Bose Studios, an in-house content studio designed to help it shift from campaign-driven marketing, the company exclusively told CMO Insider.

One key differentiator is the launch of a new record label, Bose Records. Bose CMO Jim Mollica said in an interview that the plan isn't to go toe-to-toe with the "Big Three" label conglomerates, but rather to help break underappreciated or new artists and — crucially — not have to pay for music rights when they feature in Bose commercials. (Mollica said Bose wouldn't look to own the artists' masters, the company wouldn't take a share of their record sales or streams, and that they would be free to sign with other labels.)

Other big projects include commissioning original TV series and films "attached to some legendary Hollywood names," Mollica said. Bose is also planning a YouTube series, podcasts, and live music events — and could perhaps even buy a music media company. Some of those properties will generate their own ad revenue.

The launch of Bose Studios reflects a reality most CMOs face. Ad prices are higher, even though audiences are more fragmented and, in the case of TV, smaller. Consumers are actively avoiding advertising. Social media algorithms and the rise of AI search are disrupting the old ways that brands were discovered. Brands need to entertain to cut through.

"Our category, music, has a bunch of rituals baked into it," Mollica said. "If we have the opportunity, not to sell products, but become part of that ritual, then ultimately Bose is not an audio-equipment business anymore. We're about deepening people's relationship with music."

Much of Bose's prior marketing already focused on forging partnerships with music artists. Last year, for example, it teamed up with Blackpink's LISA to create customized earbuds, which it launched at a pop-up store in Los Angeles. This past February, it collaborated with the Grammy-nominated Twitch streamer PlaqueBoyMax, who created music on the spot during a livestream that aired during the NBA's All-Star weekend.

The record label and film productions signal Bose's expanded ambitions. Other brands, including Red Bull and Starbucks, have launched music labels in the past, though they were eventually retired.

Alexandra Annable, founder of Holl'r Music, an artist management and booking agency, said competition is fiercer than ever for emerging artists. For Bose to succeed, it might want to consider aligning itself with a specific genre, she added, pointing to Wingstop, which created its UK Freestyle Series for emerging drill, rap, and hip-hop artists.

"I think the only way brands can effectively engage with music fans is to create unique, content-led experiences, but these must be really authentic and culturally relevant," Annable said.

Steve Ackerman, a board advisor and consultant to media and entertainment businesses, said Bose Studios needs to ensure the content comes before promoting its products.

"The graveyard of branded content is littered with brands that have gone down this route and not understood what it means to be a content creator," Ackerman said. "They often defaulted to advertising agencies that don't understand how to engage with audiences; they just understand how to create content that gets in the way of the thing that audiences want to engage with."

Mollica, who previously worked at Disney and Viacom, said he understands the assignment. He said Bose Studios is not working with ad agencies and is recruiting and partnering with talent across the film, TV, podcast, and publishing industries.

"This isn't product placement; this isn't a long, 30-minute commercial," Mollica said. "These things are truly about how we are taking this authentic love of music and elevating the content that's out there today for true music fans to experience more."