Downtown Music Holdings Makes A Shift

Realignment

DOWNTOWN MUSIC HOLDINGS (DOWNTOWN) has announced its re-aligning its divisions, distribution, rights management, and promotions. Apart from this re-alignment is the divestment of its portfolio of 145,000 owned music copyrights to CONCORD MUSIC GROUP (NET NEWS 4/26).

Across DOWNTOWN’s operating brands, the company currently manages more than 23 million music assets on behalf of more than ONE million creators and 2,500 enterprise clients, making it the largest pure-play service provider in the global music industry. Collectively, DOWNTOWN is projecting to generate over $600M from its music services businesses in 2021.

“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," said DOWNTOWN Founder and CEO JUSTIN KALIFOWITZ. "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. 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.”

The newly established DOWNTOWN MUSIC SERVICES will combine the services of two of DOWNTOWN’s divisions, DOWNTOWN MUSIC PUBLISHING and DASHGO. This new division will offer bespoke distribution, copyright management, creative marketing and financing solutions for premier songwriters and artists.

DOWNTOWN MUSIC SERVICES will be led by MIKE SMITH, 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 COO, with continued oversight over distribution, marketing and promotion.

"What drives me forward is empowering artists and songwriters to take control of their destiny," said SMITH. "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."

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.”

LISBETH R. BARRON and her firm BARRON INTERNATIONAL GROUP acted as the exclusive financial advisor to CONCORD on the transaction. In the last four years, BARRON INTERNATIONAL GROUP has worked with CONCORD on over a half dozen transactions including the key components of its theatrical division and CONCORD’s purchase of IMAGEM in 2017.

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