Independent organizations criticize acquisition
Independent music organizations WIN and A2IM have voiced their objections to Universal/Virgin Music Group’s $775 million acquisition of Downtown Music Holdings.
In a press release issued on Thursday (December 19), the organizations stated that the deal “creates enormous consolidation in music distribution, licensing and rights management that will significantly distort the global music market.”
The independent organizations are “calling on the authorities to block the deal.”
Concerns over market competition
World Independent Network (WIN), which represents indie music trade associations globally, and A2IM, which advocates for indie labels in the US, expressed that the Downtown acquisition would “reduce the competition and bargaining power of independent companies in the music supply chain.”
They also contended that this acquisition would result in “fewer opportunities for smaller companies to negotiate fair terms and compete on a level playing field, resulting in higher costs and less choice.”
The acquisition, which awaits regulatory approval and is anticipated to close in the second half of 2025, has drawn criticism from Europe’s indie label body, IMPALA, which accused UMG this week of engaging in a “land grab” within the indie sector.
Voices from industry leaders
Noemi Planas, CEO of WIN, commented: “We are a global independent music community. UMG attempting to present this as an investment in an independent ecosystem is not fooling anyone.
“UMG’s attempt to present this as an investment in an independent ecosystem is not fooling anyone.
Noemi Planas, VICTORY
Planas added: “This is extracting wealth from the independents, another step in UMG’s relentless path to dominance and suppression of competition. Independent music is a source of cultural innovation, and market consolidation threatens the diversity that enriches music worldwide. We call on regulators to block the deal.”
A2IM CEO Dr. Richard James Burgess MBE stated: “Universal Music Group’s acquisition of Downtown Music’s assets continues a worrying trend of consolidation within independent music infrastructure following the 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
Darius Van Arman, CEO of Secretly Distribution and co-founder of Secretly Group, expressed: “When near-monopoly Universal acquires Downtown, one of the largest independent music ecosystems, and does so in the name of independence, it devalues the meaning of the word.
“Market consolidation on this scale is not only anti-competitive, but also poses a fundamental threat to true independence.”
Darius Van Arman, Secretly
Maria Amato, CEO of the Australian Independent Recording Industry Association (AIR), remarked: “While we support free enterprise, monopolies dominate market forces and make it impossible to compete.
“There needs to be regulation to ensure that Universal, already the largest music business globally with a significant stake in Spotify, does not dictate prices, allowing artists and labels to negotiate fair and equitable terms.”
Maria Amato, AIR
Felippe Llerena, president of Brazilian trade association ABMI, stated: “The recent acquisition by major corporations of companies that were once independent is a wake-up call for the entire global independent music community.
“The Orchard, AWAL, Som Livre, Proper Music, Altafonte, and now Downtown Music exemplify how multinational capital is reshaping the sector. ABMI believes it is our duty to safeguard and promote an independent ecosystem where artists, labels, and companies can thrive creatively and sustainably. Our fight is for music to be acknowledged as art, culture, and self-expression, not merely as a market product.”
Cecilia Crespo, director general of the Argentine recording industry association ASIAr, noted: “Concentration not only negatively impacts how platforms distribute royalties between artists and rights holders (based on market share), but also due to the unregulated use of data and intelligence gleaned from the analysis of behaviors of all stakeholders (artists, audience, and users).”
“IMPF is both saddened and concerned by the news of the potential sale of Downtown Music to Universal’s Virgin Music Group.”
IMPF
A spokesperson for IMPF commented on the potential acquisition of Downtown Music by Virgin Music Group this week, stating: “IMPF is both saddened and concerned by the news of the potential sale of Downtown Music to Universal-owned Virgin Music Group. Downtown Music Publishing and Sheer Publishing Africa are respected members of the independent music publishing community and IMPF.
“Moreover, many other Downtown Music divisions, particularly Songtrust, collaborate with independent publishers globally. While the value of independent music publishing continues to climb internationally, if this sale proceeds, it will lead to further market concentration, ultimately harming the diversity of the music industry ecosystem, undermining competition, and reducing options for both songwriters and publishers.”
