Impartial music organizations WIN and A2IM have criticized Common/Virgin Music Group’s $775 million acquisition of Downtown Music Holdings.
In a press launch issued on Thursday (December 19), the orgs claimed that the deal “creates enormous consolidation in music distribution, licensing, and rights administration that will severely distort the worldwide music market”.
The impartial organizations say that they’re “calling for authorities to dam the deal”.
The Worldwide Impartial Community (WIN), which represents indie music commerce associations worldwide, and A2IM, which represents the pursuits of indie labels within the US, argued on Thursday that the Downtown deal “would cut back competitors and the independents’ bargaining energy throughout the music provide chain”.
Additionally they argued that the deal will end in “fewer choices for smaller corporations to barter honest phrases and compete on equal footing, resulting in increased prices and fewer selection”.
The acquisition, which is topic to regulatory approval and is predicted to shut in H2 2025, additionally attracted criticism from European indie label physique IMPALA this week. IMPALA accused UMG of committing a “land seize” within the indie sector.
Noemí Planas, CEO of WIN, mentioned: “We’re the worldwide impartial music neighborhood. UMG attempting to current this as an funding within the impartial ecosystem is fooling nobody.
“UMG attempting to current this as an funding within the impartial ecosystem is fooling nobody.
Noemí Planas, WIN
Added: Planas: “That is wealth extraction from the independents, one other step in UMG’s relentless path to dominance and stifling competitors. Impartial music is the lifeblood of cultural innovation and market consolidation threatens the range that makes music so wealthy and compelling around the globe. We name on regulatory our bodies to dam the deal.”
A2IM CEO Dr. Richard James Burgess MBE, mentioned: “Common Music Group’s acquisition of Downtown Music’s belongings continues a troubling development of consolidating impartial music infrastructure, following acquisitions of InGrooves, MTheory, and PIAS.
“These acquisitions danger silencing the impartial voices that drive innovation and creativity within the music business.”
Dr. Richard James Burgess, A2IM
“This growing stage of market focus chips away on the aggressive panorama, making it more and more tough for really impartial artists and firms to function freely and equitably. These acquisitions danger silencing the impartial voices that drive innovation and creativity within the music business.”
“Market consolidation at this scale is just not solely anti-competitive, it’s a elementary risk to true independence.”
Darius Van Arman, Secretly
Darius Van Arman, Secretly Distribution CEO and Secretly Group Co-Founder, mentioned: “When near-monopolist Common acquires Downtown, one of many largest impartial music ecosystems, and does so within the identify of independence, it cheapens what the phrase means.
“Market consolidation at this scale is just not solely anti-competitive, it’s a elementary risk to true independence.”
“While we’re in favour of free enterprise, monopolies dominate market forces and take away the flexibility to compete.”
Maria Amato, Australian Impartial Report Labels Affiliation
Maria Amato, the CEO of Australian Impartial Report Labels Affiliation (AIR), mentioned: “While we’re in favour of free enterprise, monopolies dominate market forces and take away the flexibility to compete.
“There should be regulation to make sure that Common who’s already the most important music enterprise on the earth with a big stake in Spotify doesn’t dictate costs and the flexibility for artists and labels to barter honest and equitable phrases.”
“The current acquisition by massive companies of corporations that till just lately had been impartial is a pink alert for the complete world impartial music neighborhood.”
Felippe Llerena, ABMI
Felippe Llerena, President of Brazilian commerce affiliation ABMI, mentioned: “The current acquisition by massive companies of corporations that till just lately had been impartial is a pink alert for the complete world impartial music neighborhood.
“The Orchard, AWAL, Som Livre, Correct Music, Altafonte and now Downtown Music are examples of how multinational capital is reshaping the sector. ABMI believes that it’s our responsibility to guard and promote an impartial ecosystem, the place artists, labels and firms can create freely and sustainably. Our combat is for the appreciation of music as artwork, tradition and expression, not as a easy market product.”
Cecilia Crespo, Common Supervisor of the affiliation of Argentinian file labels ASIAr, mentioned: “Focus not solely has a detrimental impression in the best way platforms distribute royalties to artists and rights holders (primarily based on market share), but in addition because of the unregulated use of information and intelligence from the evaluation of the info and the conduct of all actors concerned (artists, audiences, and customers).”
“IMPF is each saddened and anxious by information of a possible sale of Downtown Music to Common-owned Virgin Music Group.”
IMPF
An IMPF spokesperson additionally commented on the potential sale of Downtown Music to Virgin Music Group this week: “IMPF is each saddened and anxious by information of a possible sale of Downtown Music to Common-owned Virgin Music Group. Downtown Music Publishing and Sheer Publishing Africa are valued members of the impartial music publishing neighborhood and certainly of IMPF.
“Moreover, lots of Downtown Music’s different operations, notably Songtrust, are companions to impartial publishers around the globe. Whereas impartial music publishing continues to develop in worth internationally, ought to this sale go forward, it is going to imply additional market focus, which in flip will harm the range of the music business ecosystem, hurt competitors and in the end scale back selection for songwriters and publishers alike.”
Music Enterprise Worldwide
