More players in the independent music industry are calling on regulators to block Universal Music Group’s (UMG) acquisition of Downtown Music Holdings, announced this week, arguing that the deal “will seriously distort the global music market” and “reduce competition and opportunities for independent musicians.” Benefit”. ‘Bargaining power. “
UMG’s Virgin Music Group announced on Monday (December 16) that it has agreed to acquire Downtown Music Holdings for $775 million, a deal that will strengthen the music giant by absorbing Downtown’s stable of independent publishers market share. The deal comes two months after UMG acquired the remaining stake in the independent label [PIAS]including its services unit Integral – the agreement has also been criticized by independent trade groups, who have asked regulators to investigate the agreement.
In a joint release on Thursday (December 19), several independent music leaders said that if the deal is allowed to go through, it will lead to “less options for small companies to negotiate fair terms and level the playing field, leading to higher costs and cost reduction”. choose. ”
“We are a global independent music community,” said Noemi PlanasCEO of the Worldwide Independent Network (WIN) said in a statement. “UMG’s attempt to portray this as an investment in the independent ecosystem is fooling no one. This is squeezing wealth out of independents and is another step in UMG’s ongoing drive toward dominance and stifling competition. Independent music is the lifeblood of cultural innovation. , and market consolidation threatens the diversity that makes music so rich and compelling around the world, we call on regulators to block this deal.
A2IM CEO also publicly opposed the acquisition Richard James Burgess”, he said: “Universal Music Group’s acquisition of the assets of Downtown Music continues a disturbing trend of consolidating the independent music infrastructure, following the acquisitions of InGrooves, MTheory and PIAS. Increased market concentration has weakened the competitive landscape, making it increasingly difficult for truly independent artists and companies to operate freely and fairly. These acquisitions threaten to stifle the independent voices that drive innovation and creativity in the music industry.
additional Darius Van AmanCEO of Secretly Distribution and co-founder of Secretly Group said: “When the near-monopoly Universal acquires one of the largest independent music ecosystems, Downtown, it cheapens the meaning of the word. Market consolidation on this scale is not only anti-competitive and a fundamental threat to true independence.
Virgin’s acquisition of Downtown is just the latest in a series of similar acquisitions by major brands over the past few years. In 2024 alone, UMG acquired Outdustry, a label services and rights management company operating in China, India and other Asian markets; Thai recorded music catalog RS Group; Nigerian record label Mavin Global; and US-based Chord Minority stake in Music Partners, among others. Sony Music made a splash two years ago when it acquired AWAL and Kobalt Neighboring Rights from Kobalt Music Group, followed by acquisitions of Spanish label and publisher Altafonte and Greek independent label Cobalt Music, among others. Warner Music Group recently acquired minority stakes in European independent labels, including Dancing Bear Music (Croatia), NIKA (Slovenia) and Mascom (Serbia); it also fully acquired Dutch label Cloud in October 9 Recordings.
“While we support free enterprise, monopolies dominate market power and eliminate the ability to compete,” said Maria AmatoThe chief executive of the Australian Association of Independent Records (AIR) said in a statement about the city center deal. “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 of recently independent companies by large companies is a red alert for the entire global independent music community,” added Felipe LereinaChairman of the Brazilian Trade Association ABMI. “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.
In her own statement, Cecilia CrespoThe general manager of the Argentinian record label association 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 the unregulated use of data and intelligence from Analysis of data and behavior of all participants (artists, viewers and users).
Several other independent music players came out against the Downtown takeover on Tuesday (December 17), including independent record label trade body IMPALA, the UK-based Association of Independent Music (AIM) and global independent music publishers trade body IMPF.
UMG did not immediately respond advertising billboardRequested for comment on the latest statement of objections.
