Happy Monday Dear Readers!
Today ADAM 4 Artists received notification, via email, of Virgin Music’s pending acquisition of Downtown Music. Virgin Music is a division of the mega conglomerate, Universal Music Group.
For those that are unaware, Songtrust is a global music publishing administration platform that helps songwriters, producers, and rights holders manage royalties, register copyrights, and collect publishing income worldwide.
This announcement is a very interesting one, as it has several, potential, long-term ramifications. For now, we’ve attached a copy of the email we received today, below. Thanks!
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Dear Valued Songtrust Client,
Today, we announced the acquisition of Downtown Music by Virgin Music Group.
While this agreement is inclusive of all Downtown Music companies (FUGA, Downtown Artist & Label Services, Downtown Music Publishing, CD Baby and more), this is an exciting new era for Songtrust as we have the opportunity to be Virgin's first publishing operation.
Virgin is Universal Music Group’s global independent music division, and we are proud to have their support. They are embracing our model and our commitment to expanding the opportunities available to our clients and independent catalogs, rights owners, and songwriters.
Songtrust will continue to support you through our robust publishing administration operations and services you are used to. I am very proud of the culture we have built with our clients and it is a top priority to only develop our support further.
As a client, you’ll continue to have access to the same services, resources, and people you do now. In fact, we know being resourced and supported by Virgin Music Group will only expand and enhance our global offering for Songtrust clients.
Both Songtrust and Virgin are committed to protecting songwriters and rights owners. Together, we share the vision of an industry built on the needs of songwriters, one that pays copyright owners and values the craft of the song. Together, we will continue to advocate on your behalf.
The transaction isn’t expected to close for several months, so there will be no changes to how we operate for some time. We will keep you updated as this process moves forward.
This is a significant event in the music industry. As we look forward to the new opportunities and resources this partnership will bring our clients, the Songtrust team will be available to support you at every stage.
My sincere best,
Emily Stephenson
Songtrust President
Amit Bansal
Commented 7 hours ago
Somethings seem to be quite incorrect in this article, or?
Songtrust is not acquiring Downtown Music. Songtrust is owned by Downtown Music Holdings.
Downtown music is not a division of Virgin. Virgin will acquire Downtown which is the deal announced.
Its not divesting. Virgin (part of UMG, the major label) is acquiring.
ADAM 4 Artists
Replied 6 hours ago
You are absolutely correct. I will make the necessary adjustments.
E Masango
Commented 16 hours ago
Solid info. If we continue to educate and empower creators, it seems everyone will have to make fair deals.
ADAM 4 Artists
Replied 16 hours ago
I couldn’t agree more. More players in this space will lead to greater competition, which will ultimately give creators more options, and improve the industry overall. Announcements like this validate our model.
E Masango
Replied 16 hours ago
💯 we are merely catching a wave. Yet we must admit, it does seem remarkably and rightfully full circle ⭕🤩
Amit Bansal
Replied 7 hours ago
Its not more players, its an acquisition and will reduce competition. Thus as usual, this looks like a sell out of what seems to be a well-respected independent business, to a giant corp which will screw this up over time.
ADAM 4 Artists
Replied 6 hours ago
To clarify, when I say “more”, I mean startups. Yes, mergers and acquisitions create conglomerates and de-consolidation, but those companies will face intense competition from startups that will leverage new tech to disrupt.