Quantcast

WSJ ON DOWNTOWN DEAL AND THE FUTURE OF MUSIC SERVICES

An article (behind a paywall) in the 4/29 edition of the Wall Street Journal explores Downtown's sale of its owned copyrights (for a cool $400m, according to WSJ's source) and the company's pivot to a service model. 

As the story's author, Anne Steele, points out, Downtown's move demonstrates the expansive impact of streaming just as the gold rush in copyright sales has. In particular, the growth of independent music has opened a potentially massive lane.

What's more, the argument goes, the escalating value of music assets means there's more opportunity for new acts to flourish without selling everything too early—and those acts need assistance.

"The motivation to sell your rights at the onset of your career is falling out of fashion," reads a quote from Downtown boss Justin Kalifowitz. "While it's true that the top of the pyramid, the top 1% of creators, are selling their copyrights, the general theme of the music business today is 'how do I own and control my music?'"

The WSJ piece notes that Downtown, which engaged Raine Group LLC last year to help guide its strategy, is betting on a services division that grew 30% in 2020, well beyond the growth of its IP holdings.

MAYBE, JUST MAYBE: THE MUSIC NEVER STOPPED
Easing back out there (6/15a)
1 TRENDING TOPIC: “LEVITATING” TO #1
How'd they do that? (6/15a)
SIGNS OF HITS LIST
We're reading the tea leaves. (6/15a)
REOPENING DELAY CRIPPLES LIVE BIZ
"Variant" is a scary word right now. (6/15a)
MUSIC’S HOTTEST FIRMS: GRUBMAN SHIRE MEISELAS & SACKS
Is there a lawyer in the house? (6/15a)
RHYTHM, BLUES AND THE FUTURE
The musical tapestry we know as R&B.
WHO'S NEXT?
Predicting the next big catalog deal.
JUST THE VAX, MA'AM
Once we all get vaccinated, how long before we can party?
WORLDWIDE GROOVE
How is globalization bringing far-flung territories into the musical mainstream?
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)