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.