Downtown is changing its business model to focus exclusively on music services.

The company is re-aligning its portfolio of distribution, rights management and promotional divisions, merging Downtown Music Publishing with distribution/marketing unit DashGo to form Downtown Music Services.

Mike Smith, who joined Downtown last year as Global President of the company’s music-publishing business, will lead Downtown Music Services. DashGo Founder and President Ben Patterson will assume the role of Chief Operating Officer with continued oversight of distribution, marketing and promotion.

The move follows Downtown’s sale of its portfolio of 145,000 copyrights to Concord Music Group.

“Divesting our owned IP enables us to advance our position as the world’s leading music-services 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,” Downtown Founder and CEO Justin Kalifowitz said.

Downtown Music Services will offer bespoke distribution, copyright management, creative marketing and financing solutions for songwriters and artists.

“With the establishment of this new business unit, Downtown is enabling creatives to maintain ownership while still getting the access, resources and support of a global music company,” Smith said.

Across Downtown’s operating brands, the company manages more than 23m music assets on behalf of more than 1m creators and 2,500 clients. Downtown predicts it will generate more than $600m from its music-services business in 2021.

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.”