Several other players in the independent music community called on regulators to block Universal Music Group's (UMG) takeover of Downtown Music Holdings announced this week, arguing the deal would “severely distort the global music market” and “reduce competition and independents “Negotiability”.
Virgin Music Group, which is owned by UMG, announced on Monday (December 16) that it has agreed to buy Downtown Music Holdings for $775 million in a deal that would increase the music giant's market share by absorbing Downtown's independent distributors, publishing and rights managers including FUGA, CB Baby, AdRev and Songtrust. The deal comes just two months after UMG acquired the remaining shares in the indie label group [PIAS]including its services division, Integral — a deal that was similarly criticized by independent trade groups, which asked regulators to launch an investigation into the pact.
In a joint release on Thursday (December 19), several indie music leaders said the deal, if allowed to go through, would result in “fewer options for smaller labels to negotiate fair terms and compete on a level playing field, leading to higher costs and less choice.”
“We are the global independent music community,” he said Noemí PlanasCEO of the Worldwide Independent Network (WIN), in a statement. “UMG trying to pitch this as an investment in the independent ecosystem isn't fooling anyone. This is the extraction of wealth from the independents, another step in UMG's inexorable march 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 exciting around the world. We call on regulators to block the deal.”
The CEO of A2IM also spoke against the takeover Richard James Burgesswho said: “Universal Music Group's acquisition of Downtown Music's assets continues an alarming trend of independent music infrastructure consolidation, following the acquisitions of InGrooves, MTheory and PIAS. This increasing level of market concentration is chipping away at the competitive landscape, making it increasingly difficult for truly independent artists and companies to operate freely and fairly. These acquisitions risk silencing the independent voices that drive innovation and creativity in the music industry.”
Added Darius Van ArmanCEO of Secretly Distribution and co-founder of Secretly Group, “When the near-monopoly Universal buys Downtown, one of the largest independent music ecosystems, and does it in the name of independence, it diminishes the meaning of the word. Market consolidation on this scale is not only anti-competitive, but also a fundamental threat to true independence.”
Virgin's purchase of Downtown is just the latest in a string of similar acquisitions by major companies in recent years. In 2024 alone, UMG acquired Outdustry, a label services and rights management company operating across China, India and other Asian markets. Recorded music catalog based in Thailand RS Group. Nigerian record label Mavin Global; and a minority stake in US-based Chord Music Partners, among others. Two years ago, Sony Music made a splash when it acquired AWAL and Kobalt Neighboring Rights from Kobalt Music Group, followed by more recent acquisitions of companies such as Spanish label and distributor Altafonte and Greek independent label Cobalt Music. And Warner Music Group has acquired minority stakes in European indie labels of late, including Dancing Bear Music (Croatia), NIKA (Slovenia) and Mascom (Serbia). In October it also fully acquired the Dutch label Cloud 9 Recordings.
“While we're pro-free enterprise, monopolies dominate market forces and take away the ability to compete,” he said. Maria AmatoCEO of the Australian Independent Record Labels Association (AIR), in a statement about the Downtown deal. “There needs to be regulation to ensure that Universal, which is already the world's largest music business with a large stake in Spotify, does not dictate prices and the ability of artists and labels to negotiate fair and equal terms.”
“The recent major corporate takeover of previously independent companies is a red alert for the entire global independent music community,” he added. Felipe Llerenapresident of the Brazilian trade association ABMI. “Orchard, AWAL, Som Livre, Proper Music, Altafonte and now Downtown Music are examples of how multinational capital is reshaping the industry. ABMI believes it is our duty to protect and promote an independent ecosystem where artists, labels and companies can create freely and sustainably. Our struggle is for the appreciation of music as art, culture and expression, not as a mere market product.”
In her own statement, Cecilia CrespoGM of Argentina's label association ASIAR, said: “Consolidation not only has a negative impact on the way platforms distribute rights to artists and rights holders (based on market share), but also because of the unruly use of data and intelligence from the analysis of the data and the behavior of all the actors involved (artists, audience and users)'.
On Tuesday (December 17), several other independent music players opposed the Downtown takeover, including independent label trade body IMPALA, the UK-based Association of Independent Music (AIM) and global trade body for independent music publishers IMPF.
UMG did not immediately respond Bulletin boardhis request for comment on the latest opposition statements.
