[PIAS]
LONDON – Independent labels trade body IMPALA is calling on regulators to investigate Universal Music Group’s acquisition of [PIAS] over concerns that the deal restricts competition in the global record business and “narrows options for artists and labels.”
[PIAS] co-founders Kenny Gates and Michel Lambot announced earlier this week that they were selling their remaining shares in the indie label group to Universal Music Group (UMG), which already owns a 49% stake in the company, for an undisclosed sum.
The deal gives UMG full ownership of [PIAS]’s services division [Integral], which provides physical and digital distribution services to more than 100 indie label partners including ATO, Beggars Group and Secretly Group and will henceforth merge with Virgin Music Group.
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Also falling under UMG’s control because of the share sale is the [PIAS] Label Group, home to indie imprints Play It Again Sam, harmonia mundi, Spinefarm, Source and partner labels such as ATO, Heavenly, Mute and Transgressive. Despite the change in ownership, [PIAS] says its label group business will remain completely autonomous.
In response, IMPALA and several of its associate national trade groups are calling on competition regulators to launch an investigation into what it described as “unchecked concentration in the music market [which] continues to be a serious problem.”
“The bottom line is UMG’s acquisition of [PIAS] will increase the power of [UMG] across Europe and beyond, including the U.K. and the USA, and IMPALA expects regulators in these jurisdictions to take action,” said the Brussels-based organization, which represents over 6,000 indie music companies in Europe, in a press release on Friday (Oct. 18).
Helen Smith, IMPALA’s executive chair, said she “expects” regulators to review the [PIAS] acquisition “and answer the question the industry is asking about how it is possible for UMG to gain more market share after it was already considered too big?”
“A share deal is one thing, this is something else,” said Smith, who is calling for competition officials to assess how the deal impacts physical and digital music markets, including distribution services, “as well as the impact on competitors, digital services, artists and fans.”
Geert de Blaere, the chair of Belgian association BIMA, said that while the Belgian market owes a debt of gratitude to [PIAS] for showing entrepreneurs what is possible, the impact of the company’s takeover by UMG “will be structural, significant and long lasting” for the independent music business.
“This is completely different to a share deal as UMG takes over the market share of [PIAS]. Scale and stability in the whole independent sector will be lost. Incremental shifts in the market across the majors leverages disproportionate influence in the hands of a few companies. Each time that happens the result is more control over how the market develops,” said de Blaere in a statement.
Supporting calls for an investigation, IMPALA chair Dario Draštata said the deal strengthens UMG in terms of market share, “eliminates a principal competitor” and “narrows options for artists and labels.”
Representatives for UMG and [PIAS] did not respond to requests for comment when contacted by Billboard.
The acquisition of [PIAS] by the world’s biggest music company further grows the dominant market share enjoyed by UMG and follows the expiration of a 10-year ban on the music giant acquiring certain music companies or catalogs in Europe.
Those restrictions were placed on UMG in 2012 by the European Commission as one of the conditions of the company’s $1.9 billion takeover of EMI going ahead. As part of that process, the European Union’s executive branch forced UMG to divest the Parlophone Label Group, which was bought by Warner Music Group (WMG) for around $750 million, as well as the offloading of numerous EMI entities in Europe, and the Chrysalis, Mute, Sanctuary and Co-op Music labels.
To receive regulatory approval to buy EMI, UMG committed to not re-acquire any of the assets sold, or re-sign any artists signed with labels it had divested for a period of 10 years. Just a few months after that decade-long ban expired in September 2022, Universal acquired a 49% minority stake in [PIAS], which owns some of those previously off-limits catalogs, including Co-op Music.
On Tuesday (Oct. 15), UMG announced it had grown its minority interest to full ownership, following Gates and Lambot’s decision to sell their controlling stake.
The acquisition of [PIAS] by UMG is part of a growing trend of major labels looking to the independent sector to increase their market share, either by enhancing their distribution offerings for indie artists and labels or by investing in, or buying, independent music companies.
In 2019, UMG acquired independent distribution and marketing company Ingrooves Music Group. One year later, Sony Music bought J. Erving‘s digital distribution and label services company Human Re Sources from Q&A, followed in 2021 by its purchase of artist services company AWAL and Kobalt Neighbouring Rights from Kobalt Music Group.
Major indie label acquisitions over the past decade include WMG buying Netherlands-based Spinnin’ Records in 2017 and Sony Music’s purchase of U.K. dance label Ministry of Sound in 2016.
On a smaller scale, WMG has been steadily growing its recorded music interests in Central and Eastern Europe, buying minority stakes in Croatia’s Dancing Bear Music, Slovenian independent label NIKA and Serbia’s Mascom. And this week, WMG Benelux announced the acquisition of Dutch label Cloud 9 Recordings.
Referencing the major labels’ pursuit of key independent labels, Draštata, who is also president of Balkan indie label trade association RUNDA, said the practice was becoming an “issue across Europe.”
“The loss of such big players for the independent sector compounds the competitive impact and the risk is that this trend will continue,” said Draštata in a statement. “We have been signalling the problem of creeping dominance for many years and it’s time for a new competition approach to address this question.”
The founders of indie label group [PIAS] have announced they are selling the remaining shares they hold in the company to Universal Music Group (UMG), making the music giant the firm’s majority shareholder.
In an announcement on Tuesday (Oct. 15), Kenny Gates said he and his [PIAS] co-founder Michel Lambot were selling their shares to UMG, which acquired a 49% stake in the company in 2022, to “allow us to offer a truly global distribution and services platform to the independent music community.”
Financial terms were not revealed for the deal, which expands upon a strategic global partnership between the two companies that began in 2021. When UMG acquired the 49% stake in [PIAS] for an undisclosed sum the following year, Gates and Lambot retained majority control of the company.
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Ownership of [PIAS] now appears to be fully in the hands of UMG, although representatives of the European indie label group and UMG declined to expand upon the information contained in Tuesday’s press release.
Details that have been confirmed as part of the new arrangement include the merger of Virgin Music Group and [PIAS]’s services division [Integral], which provides physical and digital distribution services to more than 100 indie label partners including ATO, Beggars Group and Secretly Group.
The newly combined teams will provide “independent entrepreneurs with world class services and access to a bespoke, stand-alone international distribution network,” said [PIAS]. Reps for the firm and UMG declined to comment when asked if the merger would result in any job losses.
The [PIAS] Label Group, which includes the indie labels Play It Again Sam, harmonia mundi, Spinefarm, Source and partner imprints such as ATO, Heavenly, Mute and Transgressive, will remain completely autonomous, said the company. Artists signed to or distributed by those labels include Nick Cave & The Bad Seeds, Kneecap, Sofiane Pamart, Sleep Token, Arlo Parks and Black Pumas.
“I am selling my shares not my soul,” said Gates, who will remain CEO of [PIAS] and sit on the Virgin Music Group main board and advisory group, in a statement.
“Since agreeing [to] a strategic alliance with UMG in 2021 we have found them to be supportive and engaged partners who have added real value to our offering,” continued Gates, describing the decision to relinquish the founders’ remaining shareholdings in [PIAS] as a “pragmatic one.”
The company’s existing leadership team will continue to steer day-to-day operations “and nothing will change culturally or commercially for our existing clients and partners,” said Gates, who co-founded [PIAS] with Lambot in Brussels, Belgium, in 1983.
Lambot said that despite initially having “some concerns” about partnering with UMG in 2021, the experience has surpassed his expectations.
“Our relationship to date has been fruitful, convivial and everything we hoped it would it be,” he said. “This new phase, which will see us working even closer together promises to be an exciting new era for [PIAS], our staff, our partners and the artists we represent.”
“I’ve known Kenny and Michel for decades, beginning in the 80s when we were all signing bands from emerging scenes in Europe,” added Lucian Grainge, chairman/CEO of UMG, in a statement.
“Since that time, Kenny and Michel have built [PIAS] into a company that stands for authenticity and the best in independent music,” Grainge added. “And it is those qualities that are not only important to me personally but that also make [PIAS] a perfect fit for UMG’s entrepreneurial and creative culture.”
“We are delighted by all that’s been accomplished over the past three years together, and we look forward to working with Kenny and Michel and their entire team, including their family of artists and labels, to further build [PIAS]’s legacy,” said UMG executive vp/CFO/president of operations Boyd Muir. “Their experience and insights have significantly helped to grow this dynamic area of our business. Completing the acquisition of [PIAS] Label Group and [Integral] reinforces our best-in-class label services operations and enhances our ability to support the independent artist and label community globally.”
Nick Cave & the Bad Seeds will wield their dark art in arenas across the U.K. and Europe later this year in support of Wild God, the band’s 18th studio album.
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The alternative rock outfit will kick-off their months-long Continental European jaunt Sept. 24 at Rudolf Weber-Arena in Oberhausen, Germany, with a string of U.K. dates set for November. As it stands, the action will wrap up Nov. 17 at Accor Arena in Paris, France.
Cave and Co. will use a previously-announced tour of Australia this April and May as a launch-pad for the northern run.
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“I never think about how a record is going to go live, it never, ever occurs to me,” explains Cave in a statement. “The lyric writing process is way too hard to take ideas like that into consideration. But, when I listen to Wild God now, I think we can really do something epic with these songs live. We’re really excited about that – the record just feels like it was made for the stage.”
Wild God will drop Aug. 30 through Cave’s own label Bad Seed, via a new, exclusive worldwide licensing agreement with Play It Again Sam, an imprint of the independent [PIAS] label group.
Earlier, the ARIA Hall of Fame-inducted bandleader said of Wild God, “there’s no f—ing around with this record. When it hits, it hits. It lifts you. It moves you. I love that about it.”
Led by Cave, the current Bad Seeds lineup consists of Thomas Wydler, Martyn Casey, Jim Sclavunos, George Vjestica and longtime collaborator Warren Ellis, who produces the forthcoming album with Cave.
Wild God stretches across 10 tracks and was cut at Miraval Studios in Provence, France and Soundtree Studios in London, England, featuring contributions from Radiohead’s Colin Greenwood (bass) and Luis Almau (nylon string guitar, acoustic guitar).
It’s the followup to Ghosteen, the critically-lauded two-disc longplay from 2019, which explored Cave’s exposure to grief and pain, following the sudden death of his son Arthur in 2015.
Check out Nick Cave & The Bad Seeds’ 2024 U.K. and Europe tour dates here and below.
Sept. 24 — Rudolf Weber-ARENA, Oberhausen, GermanySept. 26 — Ziggo Dome, Amsterdam, NetherlandsSept. 29 — Uber Arena, Berlin, GermanyOct. 2 — Oslo Spektrum, Oslo, NorwayOct.3 — Hovet, Stockholm, SwedenOct. 5 — Royal Arena, Copenhagen, DenmarkOct. 8 — Barclays Arena, Hamburg, GermanyOct. 10 — Atlas Arena, Lodz, PolandOct. 11 — TAURON Arena, Krakow, PolandOct. 13 — Papp László Sportaréna, Budapest, HungaryOct. 15 — Arena Zagreb, Zagreb, CroatiaOct. 17 — O2 arena, Prague, CzechiaOct. 18 — Olympiahalle, Munich, GermanyOct. 20 — Milan Forum, Milan, ItalyOct. 22 — Hallenstadion, Zurich, SwitzerlandOct. 24 — Palau Sant Jordi, Barcelona, SpainOct. 25 — WiZink Center, Madrid, SpainOct. 27 — MEO Arena, Lisbon, PortugalOct. 30 — Sportpaleis, Antwerp, BelgiumNov. 2 — First direct arena, Leeds, U.K.Nov. 3 — OVO Hydro, Glasgow, U.K.Nov. 5 — AO Arena, Manchester, U.K.Nov. 6 — Utilita Arena, Cardiff, U.K.Nov. 8 — The O2, London, U.K.Nov. 12 — 3Arena, Dublin, IrelandNov. 15 — Resorts World Arena, Birmingham, U.K.Nov. 17 — Accor Arena, Paris, France
Nick Cave & the Bad Seeds will unleash Wild God later this year, the alternative rock outfit’s 18th studio album. Led by the title track, Wild God is the followup to Ghosteen, the critically-lauded two-disc longplay from 2019, which explored Cave’s exposure to grief and pain, following the sudden death of his son Arthur in 2015.
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That record went on to crack the top 10 on national charts in Australia (at No. 2) and the U.K. (No. 4) and impacted the Billboard 200 (at No. 108), and was shortlisted for several major music awards, including the Australian Music Prize and the U.K.’s Ivor Novello Awards. The album will drop Aug. 30 through Cave’s own label Bad Seed, via a new, exclusive worldwide licensing agreement with Play It Again Sam, an imprint of the independent [PIAS] label group.
“The new album is incredible,” enthuses Kenny Gates, co-founder and CEO of [PIAS], “in my opinion his best ever, and we will go over the barricades to deliver the global success it deserves.”
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Led by the ARIA Hall of Fame-inducted Cave, the current Bad Seeds lineup consists of Thomas Wydler, Martyn Casey, Jim Sclavunos, George Vjestica and longtime collaborator Warren Ellis, who produces the album with Cave.
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Mixed by David Fridmann, Cave began work on the album on New Year’s Day 2023, news of which he shared on his blog The Red Hand Files. “My plan for this year is to make a new record with the Bad Seeds,” he wrote at the time. “This is both good news and bad news. Good news because who doesn’t want a new Bad Seeds record? Bad news because I’ve got to write the bloody thing.”Spanning 10 track, the forthcoming LP was cut at Miraval Studios in Provence, France and Soundtree Studios in London, England, and features contributions from Radiohead’s Colin Greenwood (bass) and Luis Almau (nylon string guitar, acoustic guitar).
Greenwood will accompany the multihyphenate Cave on a solo tour of Australia, set to kick off April 25 with the first of a three-night stand at the MCEC Plenary Melbourne. Cave is expected to perform songs from his extensive catalog on the trek, presented by Billions.“I hope the album has the effect on listeners that it’s had on me,” Cave says of the new album. “It bursts out of the speaker, and I get swept up with it. It’s a complicated record, but it’s also deeply and joyously infectious. There is never a master plan when we make a record. The records rather reflect back the emotional state of the writers and musicians who played them. Listening to this, I don’t know, it seems we’re happy.”Wild God track listing: 1. Song of the Lake2. Wild God3. Frogs4. Joy5. Final Rescue Attempt6. Conversion7. Cinnamon Horses8. Long Dark Night9. O Wow O Wow (How Wonderful She Is)10. As the Waters Cover the Sea
International independent pioneers Michel Lambot and Kenny Gates received IMPALA’s Outstanding Contribution award to commemorate the 40th anniversary of the [PIAS] group. The award was announced on Tuesday (July 4).
Over the last four decades, [PIAS] has grown from a vinyl record importer on behalf of UK independent record labels into a key European and global recording, marketing and distribution outlet. [PIAS] currently has 19 offices and 280 employees active globally.
Lambot and Gatesalso founded IMPALA in 2000 to develop a single voice for the independent music sector in Europe. They were instrumental in creating Merlin as well as Worldwide Independent Network (WIN), with a view to supporting and expanding the independent music ecosystem internationally.
Lambot and Gates were presented with their awards by Helen Smith, executive chair of IMPALA, at their BXL CENTRAL – CHEZ [PIAS] record shop and office located on Rue Saint Laurent in Brussels.
“Michel and Kenny’s story is an inspiration to all emerging independents starting out in the sector,” Smith said in a statement. “The contribution of [PIAS] to the European music sector is totally unique. [Their] amazing 40th-anniversary re-releases speak for the artists and great music, and IMPALA, Merlin and WIN speak for their approach on collaboration making everyone stronger.”
“Back some 25 years ago, we had the idea to combine forces of a handful of independent companies to increase our market leverage and playing field,” Lambot said in a statement. “That sounded crazy and naive: trying to unify independent companies owned and run by people fiercely independent was antinomic… And now getting an award by IMPALA which has become a kind of institution makes me feel so proud and so happy. The recognition by our peers of what we did all these years and are still doing, Kenny and myself, as [PIAS] on one hand, and for the independent world on the other hand, is very moving”.
Gates, who serves as CEO of [PIAS] added: “Our goal at [PIAS] has always been to expand our dreams by creating a company of holistic values that reflects a pan-European diversity. It’s been an incredible journey of constant adaptation, and we couldn’t receive this award without thanking all our staff and friends.”
IMPALA’s Outstanding Contribution Award is designed to put a spotlight on European independent music and those who drive it, as well as initiatives that deserve particular recognition. Previous recipients include Tony Duckworth, Didier Gosset, FONO, Kees Van Weijen, Keith Harris OBE, Tom Deakin, Love Record Stores, Music Declares Emergency, Markus Tobiassen and newspaper Dagens Næringsliv, Jonas Sjöström, Plus 1 Refugees welcome!, Alison Wenham, Label Love, Eurosonic Noorderslag, Sabine Verheyen MEP, Armada Music/Armin van Buuren, Martin Mills OBE, Mary Moneyball MEP, Charles Caldas and Mario Pacheco.
Lambot and Gates previously received the Indie Champion award at the AIM Music Awards 2022 in London.
Late British media journalist Juliana Koranteng previously invited Lambot and Gates to share their story on her 20MinutesWith podcast. In this episode, the two executives talked about their ambitions, successes and challenges in growing the [PIAS] network over the years. (Sadly, it turned out to the last episode Koranteng recorded. The journalist died in February at age 64.)
IMPALA was established in 2000 and now represents nearly 6,000 independent music companies. The organization’s mission is to grow the independent music sector sustainably, return more value to artists, promote diversity and entrepreneurship, improve political access, inspire change and increase access to finance.
Universal Music Group (UMG) has struck a deal to acquire a 49% shareholding in PIAS Group, the leading European independent music company.
Financial terms of the arrangement, announced early Wednesday (Nov. 30), were not disclosed.
By taking a minority stake in PIAS Group, UMG, the world’s leading major music company, expands on its strategic global alliance struck with the indie powerhouse in June 2021.
PIAS, or Play It Again Sam, was founded in Belgium 1982 by Kenny Gates and Michel Lambot, both career-long advocates for the independent music sector.
Gates and Lambot will retain majority control of the company, a joint statement reads, and UMG will have no seats on the company’s board.
Headquartered in London and Brussels, PIAS is said to be one of the largest independent and privately-owned music companies in the world.
The group includes the PIAS Label Group, which oversees the business’ various record label interests, and Integral Distributions Services, which provides support to its own, in-house labels and upwards of 100 independent label partners, including ATO, Beggars Group, Bella Union, Chrysalis, Domino, Epitaph, LSO, Mute, Ninja Tune, Partisan, Secretly Group, Transgressive and Warp.
Today, PIAS boasts 16 offices around the world with 300 employees.
“The boldly independent and music-centric culture that Kenny and Michel have built over the last four decades has provided a vital creative network to so many artists,” comments UMG chairman and CEO Lucian Grainge, in a statement.
“While much of the past was focused on ‘majors versus indies,’ it’s clear that today, the important divide in our industry is about those committed to artist development versus those committed to quantity over quality. “
He continues, “We share Kenny and Michel’s passion for developing artists and moving culture, and we recognize that a healthy music ecosystem needs companies like PIAS who are committed to amplifying the best voices in independent music.”
As PIAS celebrates its 40th anniversary, Gates and Lambot insist the new arrangement will enable its artists, clients and team to flourish.
Says Lambot, one of the founders of the pan-European independent music companies’ trade body Impala, “we are still as ambitious as we were when we started out about growing our global presence and providing a world class service to the independent music community.”
Gates adds, “These days we are competing with finance and tech giants and a partner like Universal Music Group provides the additional support for us to compete and grow. Universal made it clear that they like us, they trust us and they need us, because they can’t do what we do and they value it highly.”
This move, Gates continues, “makes us stronger and secures the future of our brand, our staff and our partners while maintaining control of our destiny.”
Created in a Brussels cellar four decades ago by Gates and Lambot, PIAS began life as a distributor of independent labels. Four years, the pair launched publishing company Strictly Confidential, and PIAS continued to grow its footprint, including the opening of offices Paris and London (in 1994), Hamburg (1995), Madrid (2000), New York and Stockholm (2013), and Sydney (2017) through the acquisition of Inertia.
Universal Music Group (UMG) has purchased a 49% stake in the indie label group [PIAS], expanding on a strategic global partnership that began last year. As part of the deal, [PIAS] founders Kenny Gates and Michel Lambot will retain control of the company, “remain fully independent” and UMG will have no seats on the indie’s board.
In March 2021, [PIAS] rebranded its distribution and services arm to [Integral], bringing on a new managing director to expand its business globally. Three months later, [PIAS] entered into an agreement with UMG that gave the major label group access to the [Integral] platform, which also handles distribution services for more than 100 indie label partners including ATO, Beggars Group and Secretly Group. The newly announced minority investment is said to be an extension of that initial deal.
“We have enjoyed an excellent relationship with the Universal Music Group team since we announced our strategic global alliance with them last year,” said Lambot — who co-founded [PIAS] in Brussels, Belgium, in 1983 alongside Gates — in a statement. “Kenny and I are celebrating our company’s 40th anniversary this year and we are still as ambitious as we were when we started out about growing our global presence and providing a world class service to the independent music community.”
“These days we are competing with finance and tech giants and a partner like Universal Music Group provides the additional support for us to compete and grow,” Gates said in his own statement. “Universal made it clear that they like us, they trust us and they need us, because they can’t do what we do and they value it highly. For Michel and I this is our life’s work and an ongoing journey and I am excited about the prospect of this new chapter in the life of [PIAS]. This move makes us stronger and secures the future of our brand, our staff and our partners while maintaining control of our destiny.”
The expansion of the deal comes at a time when many major labels — Capitol Music Group, Republic, 300, Interscope and more — are increasingly launching or enhancing their distribution offerings for independent artists and labels. This deal with [PIAS] presumably expands UMG’s access to independent distribution moving forward.
“The boldly independent and music-centric culture that Kenny and Michel have built over the last four decades has provided a vital creative network to so many artists,” UMG chairman/CEO Lucian Grainge said in a statement. “While much of the past was focused on ‘majors versus indies,’ it’s clear that today, the important divide in our industry is about those committed to artist development versus those committed to quantity over quality. We share Kenny and Michel’s passion for developing artists and moving culture, and we recognize that a healthy music ecosystem needs companies like [PIAS] who are committed to amplifying the best voices in independent music.”
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