Updated: Feb 19, 2019
Written By - Staff
We are sure that you’ve heard the news by now, that Universal Music Group has purchased the remainder of INgrooves music distribution service.
UMG had previously purchased a 25% stake from INgrooves, positioning itself to compete with two other major labels, Warner Music and Sony Music Group’s respectfully.
INgrooves is a digital music distributor. Founded in the City of San Francisco in 2002. Since that time, the company had been steadily building its platform.
With the purchase of INGrooves, UMG will be in position to receive access to each artist currently distributing through INGrooves.
Furthermore, with the acquisition of INGrooves, UMG will have less work to do when the time comes to sign new artists, collect valuable streaming and metadata, and furnish clearance for songs in their music library.
The downside to the UMG purchase of IN-Grooves is that each artist currently distributing through the INGrooves platform will no longer be able to claim true independent status.
With UMG belonging to one of the “big 3” (Warner Music Group, Sony Music Group, Universal Music Group) and absorbing INGrooves business model into their current platform, UMG finally has a fully extended arm in the global distribution market.
The current music industry landscape has yet again shifted.
“This acquisition by UMG represents the very best possible outcome for Ingrooves, our employees, and our artist and label partners.” - Bob Roback, CEO of Ingrooves
Companies like INGrooves have decided to sale its clients interest to third-party cor-porations like UMG in exchange for financial leverage.
Unfortunately, with each merger and ac-quisition, it is the artist whom is “left out to dry”. The matter is made worse when the artist is not aware of his or her rights and is caught in a legal shuffle.
Bob Roback, CEO of Ingrooves, said, “This acquisition by UMG represents the very best possible outcome for Ingrooves, our em-ployees, and our artist and label partners.”
With INGrooves and UMG in position to open a lot more doors for the artists they represent, we are anxiously awaiting to see how they wield their newly found strength.
So far, 2019 is shaping up to be some kind of year and we’re not even out of the first quarter yet.
This is definitely a merger that you want to keep your eyes on.
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