Independent music organizations WIN and A2IM criticized Universal/Virgin Music Group’s $775 million acquisition of Downtown Music Holdings.
In a press release issued on Thursday (December 19), the organization claimed that the deal “creates huge consolidation in music distribution, licensing and rights management that will severely distort the global music market.”
The independent groups said they “called on the authorities to block the deal”.
global independent network (WIN), representing the worldwide independent music trade association, and A2IMA group representing the interests of independent labels in the United States said Thursday that the downtown agreement “will reduce competition and the bargaining power of independent labels throughout the music supply chain.”
They also argued that the deal would result in “less options for smaller companies to negotiate fair terms and level the playing field, leading to higher costs and fewer options.”
this The acquisition, which is subject to regulatory approval and is expected to be completed in the second half of 2025, has also drawn criticism from European independent record labels Impala This week. IMPALA accuses UMG of crimes A “turf grab” in the independent field.
Noemí Planas, CEO of WIN, said: “We are a global independent music community. UMG tries to describe it as an investment in the independent ecosystem, but no one can be fooled.
“UMG’s attempt to portray this as an investment in an independent ecosystem is not deceiving anyone.
Noemi Planas, WIN
Added Planas: “This is squeezing wealth from independents and is another step in Universal Music Group’s ongoing drive toward dominance and stifling competition. Independent music is the lifeblood of cultural innovation, and market consolidation threatens to keep music in the world Such rich and compelling diversity in scope we call on regulators to block this deal.
Dr Richard James Burgess MBE, chief executive of A2IM, said: “Universal Music Group’s acquisition of the assets of Downtown Music, following the acquisitions of InGrooves, MTheory and PIAS, continues a disturbing trend of consolidating the independent music infrastructure.
“These acquisitions risk silencing the independent voices that drive innovation and creativity in the music industry.”
Dr. Richard James Burgess, A2IM
“Increasing market concentration weakens the competitive landscape and makes it increasingly difficult for truly independent artists and companies to operate freely and fairly. These acquisitions risk squelching the independent voices that drive innovation and creativity in the music industry.
“Market consolidation on this scale is not only anti-competitive but a fundamental threat to true independence.”
Darius van Ammen “The Secret”
Darius Van Arman, CEO of Secretly Distribution and co-founder of Secretly Group, said: “When Universal, a near-monopoly, acquires one of the largest independent music ecosystems, Downtown, in the name of independence, it debases the meaning of the word.
“Market consolidation on this scale is not only anti-competitive but a fundamental threat to true independence.”
“While we support free enterprise, monopolies dominate market power and eliminate competitiveness.”
Maria Amato, Australian Independent Record Labels Association
Maria Amato, chief executive of the Australian Association of Independent Records (AIR), said: “While we support free enterprise, monopolies dominate market power and eliminate competitiveness.
“Regulations must be put in place to ensure that Universal does not dictate prices and the ability of artists and labels to negotiate fair and equitable terms. Universal is already the largest music company in the world and owns a large stake in Spotify.”
“The recent acquisitions by major companies of companies that were until recently independent are a red alert for the entire global independent music community.”
Felipe Lereina, ABMI
Felippe Llerena, president of Brazilian trade association ABMI, said: “The recent acquisition of recently independent companies by large companies is a red alert for the entire global independent music community.
“The Orchard, AWAL, Som Livre, Proper Music, Altafonte and now Downtown Music are all examples of transnational capital reshaping the industry. ABMI believes we have a responsibility to protect and promote independent ecosystems that allow artists, labels and companies To create freely and sustainably. Our fight is to appreciate music as art, culture and expression, not as a simple market product.
Cecilia Crespo, general manager of the Argentinian Association of Record Companies ASIAr, said: “Centralization not only has a negative impact on the way platforms distribute royalties (based on market share) to artists and rights holders, but also due to unregulated use from all Data and intelligence for the analysis of data and behavior of participants (artists, audiences and users).
“IMPF is saddened and concerned by the news that Downtown Music may be sold to Universal’s Virgin Music Group.”
International Monetary Fund
An IMPF spokesperson also commented on the potential sale of Downtown Music to Virgin Music Group this week: “IMPF is saddened and concerned by the news of the potential sale of Downtown Music to Universal’s Virgin Music Group.” Downtown Music Publishing and Sheer Publishing Africa are important members of the independent music publishing community and even IMPF.
“In addition, many of Downtown Music’s other businesses, particularly Songtrust, are partners with independent publishers around the world. While the value of independent music publishing continues to grow internationally, if this sale goes ahead, it will mean further growth in the market concentration, which in turn will harm the diversity of the music industry ecosystem, harm competition, and ultimately reduce choice for songwriters and publishers.
global music business
