Music conglomerate Virgin Music Group counters AIM/IMPALA's assertions of recklessness regarding their acquisition of Downtown, offering a rebuttal.
In a significant move, Virgin Music Group is in the process of acquiring Downtown Music, a move that promises to bring resources, transparency, and innovation to its partners. The co-CEOs of Virgin Music Group, Nat Pastor and JT Myers, have emphasised their belief that the union provides the means for their partners to compete and thrive in a dynamic global market.
However, the acquisition has sparked some controversy. Allegations have been made that Universal Music Group (UMG), parent company of Virgin Music Group, would misuse confidential royalty data from Downtown's Curve business. However, no evidence has been provided to support this claim. The co-CEOs of Virgin Music Group consider such allegations extraordinarily irresponsible, as they could potentially damage the reputations of Virgin and Downtown.
Despite the controversy, the co-CEOs of Virgin Music Group remain optimistic about engaging in a good-faith dialogue with independent trade associations following the completion of the Downtown acquisition. They have expressed their willingness to facilitate better dialogue and cooperation between UMG and the independent community.
The independent sector continues to grow and diversify, and the co-CEOs of Virgin Music Group are proud to work with many of the world's most successful and fiercely independent labels. They believe that the partnership provides resources that help their partners compete and thrive.
Virgin Music Group disagrees with AIM about the 'Artist-Centric' framework, but they have met with AIM's leadership to discuss potential areas of collaboration. The leadership of Virgin Music Group has suggested ways they could help AIM advance its policy goals.
The independent music community is represented by organisations such as AIM and IMPALA, and they play important roles in advocating for the interests of independent labels. Gee Davy, CEO of AIM, was interviewed by Music Week on September 16, and Nat Pastor and JT Myers, co-CEOs of Virgin Music Group, called on the organisations UMG and AIM to build a more productive dialogue about their collaboration.
Kenny Gates, in his own Music Week interview, made comments about PIAS' sale of shares to Universal Music Group. Some organisations have misrepresented the market share of UMG in the music industry, but the co-CEOs of Virgin Music Group believe they are judged by their results, and their customers vote with their feet.
Virgin Music Group hopes to engage in a productive dialogue with independent trade associations following the completion of the Downtown acquisition, and they believe they are well-positioned to facilitate better dialogue and cooperation between UMG and the independent community.
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