Downtown Music, a division of Downtown Music Holdings, just secured another $500 million in credit capacity from Bank of America to expand its services to independent artists and labels.
Downtown said it initially partnered with Bank of America in 2022 US$200 million A credit facility that provides artists and rights holders with an advance payment in exchange for “a short-term share of future royalties.”
The company has now expanded its credit line with Bank of America US$500 million Increase the ability to pay advances to independent artists.
as pointed out Bloomberg On Thursday (May 9), the city center was offering advances “ranging from tens of thousands of dollars to millions of dollars.”
Today, through its operations, Downtown Music Holdings claims to be the largest independent service provider in the world.
The company transitioned from a significant owner of music rights to a focus on global services in early 2021, when it sold its catalog of 145,000 rights to approximately $400 million.
A services-focused M&A spree over the past five years is also central to its strategy of becoming a partner to rights holders rather than owning the rights themselves.
For example, in 2019, Downtown acquired AVL Digital Group and its portfolio of services for independent artists, such as distribution platform CD Baby – US$200 million trade.
More services-focused M&A activity city center This was followed by the acquisition of Amsterdam-based B2B technology and services company FUGA in 2020, and Curve Royal Systems in January last year.
Sources tell MBW the company is generating USD revenue US$900 million in this year’s revenue.
“Centre City is at the center of a major shift in the music industry, with creators and the businesses that support them fully aligned,” City Center Music chief executive Pieter van Rijn said on Thursday.
“Downtown is at the center of a major shift in the music industry, with creators and the businesses that support them fully aligned.”
Pieter van Rijn, City Center Music
He added: “Our clients rely on us to provide the resources they need to realize their work and retain ownership and control of it. Flexible financing solutions like this are another way we support artists and grow the industry as a whole. important way.
MBW reported in April that van Rijn was recently appointed CEO downtown music, reporting Andrew BergmanCEO of Downtown Music Holdings.
As part of a long-term plan to focus on services, city center It was also announced in April that it had completed its strategy to integrate its B2B business and creator-focused business into an operating company.
As part of the integration, the company operates independent publishing brands CD baby merge into its downtown music distribute.
downtown music Founded in 2022, it integrates all of DMH’s global businesses and professional services, including distribution, label and artist services, publishing management, video and user-generated rights monetization, neighboring rights, royalty accounting solutions, sync licensing and creative support services .
Today, these consolidated divisions are: downtown music press and Artist and label services (formerly Downtown Music Services), plus music publishing platform Song Trust, leakage, curveand CD baby.
Last April, Downtown Music launched a new artist and label services division born out of its DashGo distribution unit, which it acquired in 2019 as AVL Digital Group.Artist and Label Services division led by President Ben PattersonFounded DashGo in 2004.
Downtown says that across all of its services, it currently supports more than 4000000 Artists in 150 countries and 5,000 commercial clients, they have collectively created more than 1.5 trillion It will be available on major streaming platforms in 2023.
The company’s commercial customers include the well-known independent music company Beggars Group, which signed a global “delivery platform services” agreement with FUGA in 2021.
“Bank of America’s partnership with Downtown Music demonstrates their commitment to innovation and understanding of the value of the music ecosystem, and we thank them for their continued partnership.”
Andrew Bergman, Downtown Music Holdings
Commenting on the new credit facility with Bank of America, Andrew Bergman, CEO of Downtown Music’s parent company, Downtown Music Holdings, said: “Bank of America’s partnership with Downtown Music demonstrates their commitment to innovation and understanding of the value of the music ecosystem. We thank them for their continued of partnership.
“The downtown’s support of independent musicians and creators through expanded facilities is an important benefit to the entire music industry.”
Landivar, Bank of America
“Bank of America is pleased to partner with Downtown Music to expand its credit facility to support its strategic initiatives,” said Randy Hua, head of Bank of America’s entertainment industry group.
“The downtown’s support of independent musicians and creators through expanded facilities is an important benefit to the entire music industry.”
Other big names in the global music industry have also expanded credit lines with financial services providers in recent months, including Kobalt, which in March provided a $450 million revolving loan through a “syndicate” led by Truist Securities line of credit, increasing its spending power to over $1 billion.
In December, HarbourView Equity Partners, led by former Tempo Music CEO Sherrese Clarke Soares, modified a senior secured credit facility led by Fifth Third Bank to buy more music rights.HarborView’s credit facility capacity increases under revised arrangement US$100 million arrive US$300 million (from $200 million).global music business
