Earlier today, we learned that Concord has acquired 145,000 copyrights from New York-headquartered Downtown Music Holdings, in a deal MBW understands cost around $400 million.
After the announcement, one huge question remained: What’s next for Downtown?
Now, the company has revealed its next play.
Going forward, Downtown will focus exclusively on the music services sector – i.e. being a partner to copyright holders large and small, rather than owning copyrights itself – in a plan that it says will support “the extraordinary growth of the independent music economy”.
This is no small ambition: Downtown projects it will generate over $600 million from its music services businesses, across both records and publishing, in 2021 alone.
The first phase in this plan sees Downtown Music Publishing merge with the artist/label distribution and marketing capabilities of DashGo.
Together, the merged companies will form a new division called Downtown Music Services.
Downtown Music Services will be led by Mike Smith, the respected industry veteran who joined Downtown last year as Global President of the company’s music publishing business.
DashGo Founder and President Ben Patterson will assume the role of Chief Operating Officer at Downtown Music Services, with continued oversight over distribution, marketing and promotion.
Downtown’s decision to focus exclusively on music services follows several significant investments by the company into the creator and label services sector in recent years.
“Divesting our owned IP enables us to advance our position as the world’s leading music service provider, empower a rapidly expanding global creative class and, ultimately, is the most expedient way to help realize our vision of a more equitable music industry.”
In 2020, the company also launched Downtown Neighbouring Rights, a stand-alone business unit dedicated specifically to performance royalties; it represents clients such as Justin Bieber and the Estate of Ella Fitzgerald.
Additionally, Downtown’s music publishing administration platform, Songtrust, now represents more than 3 million songs and over 350,000 songwriters.
Across Downtown’s operating brands, the company says it manages over 23 million music assets on behalf of more than 1 million creators and 2,500 enterprise clients.
This, it claims, makes Downtown the largest “pure-play service provider” in the global music industry.
Downtown Founder and CEO Justin Kalifowitz, said: “Our strategic review confirmed a clear opportunity in the market for a truly neutral provider to meet the changing needs of creators and their partners.
“This is further evidenced by the strong performance and scale of Downtown’s service platforms and the global trends driving growth in the music industry.
Added Kalifowitz: “The idea of serving creators has been core to Downtown’s ethos since our founding in 2007.
“Divesting our owned IP enables us to advance our position as the world’s leading music service provider, empower a rapidly expanding global creative class and, ultimately, is the most expedient way to help realize our vision of a more equitable music industry.”
“What drives me forward is empowering artists and songwriters to take control of their destiny.”
Mike Smith
Mike Smith said: “What drives me forward is empowering artists and songwriters to take control of their destiny.
“With the establishment of this new business unit, Downtown is enabling creatives to maintain ownership whilst still getting the access, resources and support of a global music company.
“Ben and I are both excited by the truly unique offering that combines our services, knowledge and expertise.
“Continuing to leverage technology from across Downtown, combined with our unique business model will provide a significant advantage to all of our clients for years to come.”
Ben Patterson
Patterson added: “Offering our artists and labels access to the global creative marketing, copyright management and sync services of Downtown in addition to our existing white glove distribution, promotion and financing capabilities creates a one-of-a-kind home for modern creators and their teams.
“Continuing to leverage technology from across Downtown, combined with our unique business model will provide a significant advantage to all of our clients for years to come.”Music Business Worldwide
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