Music Industry Groups Slam UMG's Downtown Music Acquisition as Dangerous Consolidation Move
IMPALA, IMPF, and AIM have raised significant concerns over Universal Music Group's $775 million acquisition of Downtown Music through Virgin Music Group, highlighting potential threats to the independent music sector and market competition.
The deal, announced recently and expected to complete by mid-2025, represents a continuing pattern of major label consolidation, following UMG's recent acquisition of [PIAS] earlier in 2024.
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Key concerns raised by industry organizations:
IMPALA (Independent Music Companies Association):
- Describes the acquisition as "another land grab" by UMG
- Calls for thorough investigations by competition authorities
- Questions UMG's ability to increase market share given its already dominant position
IMPF (Independent Music Publishers International Forum):
- Expresses concern over the loss of independent music publishing entities
- Warns about reduced choice for songwriters and publishers
- Highlights potential damage to music industry ecosystem diversity
AIM (Association of Independent Music):
- Identifies the sale as part of "a continuing trend towards over-consolidation"
- Emphasizes concerns about FUGA's acquisition, a key independent sector service
- Stresses the importance of maintaining fair negotiating power for artists and labels
The organizations emphasize that this consolidation could significantly impact independent routes to market and reduce competition in the global music industry. They are particularly concerned about the combined effect of recent acquisitions, including both Downtown Music and [PIAS], on the independent music sector's future viability.
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