Independent music organizations WIN and A2IM have criticized Universal/Virgin Music Group’s $775 million acquisition of Downtown Music Holdings.
In a press release issued on Thursday (December 19), the orgs claimed that the deal “creates huge consolidation in music distribution, licensing, and rights management that would seriously distort the global music market”.
The independent organizations say that they are “calling for authorities to block the deal”.
The Worldwide Independent Network (WIN), which represents indie music trade associations worldwide, and A2IM, which represents the interests of indie labels in the US, argued on Thursday that the Downtown deal “would reduce competition and the independents’ bargaining power across the music supply chain”.
They also argued that the deal will result in “fewer options for smaller companies to negotiate fair terms and compete on equal footing, leading to higher costs and less choice”.
The acquisition, which is subject to regulatory approval and is expected to close in H2 2025, also attracted criticism from European indie label body IMPALA this week. IMPALA accused UMG of committing a “land grab” in the indie sector.
Noemí Planas, CEO of WIN, said: “We are the global independent music community. UMG trying to present this as an investment in the independent ecosystem is fooling no one.
“UMG trying to present this as an investment in the independent ecosystem is fooling no one.
Noemí Planas, WIN
Added: Planas: “This is wealth extraction from the independents, another step in UMG’s relentless path to 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 regulatory bodies to block the deal.”
A2IM CEO Dr. Richard James Burgess MBE, said: “Universal Music Group’s acquisition of Downtown Music’s assets continues a troubling trend of consolidating independent music infrastructure, following acquisitions of InGrooves, MTheory, and PIAS.
“These acquisitions risk silencing the independent voices that drive innovation and creativity in the music industry.”
Dr. Richard James Burgess, A2IM
“This increasing level of market concentration chips away at the competitive landscape, making it increasingly difficult for truly independent artists and companies to operate freely and equitably. These acquisitions risk silencing the independent voices that drive innovation and creativity in the music industry.”
“Market consolidation at this scale is not only anti-competitive, it is a fundamental threat to true independence.”
Darius Van Arman, Secretly
Darius Van Arman, Secretly Distribution CEO and Secretly Group Co-Founder, said: “When near-monopolist Universal acquires Downtown, one of the largest independent music ecosystems, and does so in the name of independence, it cheapens what the word means.
“Market consolidation at this scale is not only anti-competitive, it is a fundamental threat to true independence.”
“Whilst we are in favour of free enterprise, monopolies dominate market forces and remove the ability to compete.”
Maria Amato, Australian Independent Record Labels Association
Maria Amato, the CEO of Australian Independent Record Labels Association (AIR), said: “Whilst we are in favour of free enterprise, monopolies dominate market forces and remove the ability to compete.
“There must be regulation to ensure that Universal who is already the largest music business in the world with a large stake in Spotify does not dictate prices and the ability for artists and labels to negotiate fair and equitable terms.”
“The recent acquisition by large corporations of companies that until recently were independent is a red alert for the entire global independent music community.”
Felippe Llerena, ABMI
Felippe Llerena, President of Brazilian trade association ABMI, said: “The recent acquisition by large corporations of companies that until recently were independent is a red alert for the entire global independent music community.
“The Orchard, AWAL, Som Livre, Proper Music, Altafonte and now Downtown Music are examples of how multinational capital is reshaping the sector. ABMI believes that it is our duty to protect and promote an independent ecosystem, where artists, labels and companies can create freely and sustainably. Our fight is for the appreciation of music as art, culture and expression, not as a simple market product.”
Cecilia Crespo, General Manager of the association of Argentinian record labels ASIAr, said: “Concentration not only has a negative impact in the way platforms distribute royalties to artists and rights holders (based on market share), but also due to the unregulated use of data and intelligence from the analysis of the data and the behavior of all actors involved (artists, audiences, and users).”
“IMPF is both saddened and concerned by news of a potential sale of Downtown Music to Universal-owned Virgin Music Group.”
IMPF
An IMPF spokesperson also commented on the potential sale of Downtown Music to Virgin Music Group this week: “IMPF is both saddened and concerned by news of a potential sale of Downtown Music to Universal-owned Virgin Music Group. Downtown Music Publishing and Sheer Publishing Africa are valued members of the independent music publishing community and indeed of IMPF.
“Furthermore, many of Downtown Music’s other operations, notably Songtrust, are partners to independent publishers around the world. While independent music publishing continues to grow in value internationally, should this sale go ahead, it will mean further market concentration, which in turn will damage the diversity of the music industry ecosystem, harm competition and ultimately reduce choice for songwriters and publishers alike.”
Music Business Worldwide
