Warner Music Group made a splash yesterday with its acquisition of European distributor Zebralution Music.
Now the independent sector is taking stock of the latest acquisition involving major labels: European trade body IMPALA has formulated its response to the deal.
Warner Music has also recently acquired Revelator, while large independent businesses including Downtown and PIAS have been sold to Universal Music Group in the last few years.
“IMPALA has always said that big markets need big companies, and we hope this acquisition boosts competition among the majors,” said a statement from IMPALA following the Zebralution acquisition. “At the same time the consolidation trend continues and that dilutes the independent sector.
“The deal underlines the incredible achievements of Zebralution, a direct member of IMPALA since it was divested from Warner as part of its agreement with IMPALA back when Warner bought Parlophone after UMG was forced to sell two thirds of EMI to get EC clearance. That, in itself, is a success.
“However, the independent music sector has lost another part of its infrastructure, and Europe, a part of its diversity. While labels and artists who consciously chose an independent distributor, now find themselves within a major’s network. This reinforces the need for a strategic European approach for culture that recognises the importance of independent infrastructure and ensures that cultural diversity is central to the development of EU policy.”
We must keep cultural diversity and smaller players at the heart of Europe’s approach and facilitate our growth and competitiveness
IMPALA
In its statement at the time of the acquisition, Warner Music said that artists using Zebralution can remain independent.
Niels Walboomers, president, Warner Music Central Europe, said: "Konrad [von Löhneysen] and Sascha [Lazimbat] have built one of the most trusted homes for independent music in Europe, and a team that labels genuinely believe in. Zebralution's deep regional expertise, combined with our technology and global reach, gives its partners world-class capabilities without asking them to give up their independence."
IMPALA reiterated its call for a level playing field in terms of remuneration and promotional tools for all artists.
“We point to our recommendations to the whole market in our digital music ecosystem,” said the trade body. “These are essential for a thriving market. We look forward to continuing our industry wide collaboration on streaming integrity and also call for action on other aspects, such as diversity and making foundational changes in line with IMPALA’s Digital Music Plan.
Noting that Zebralution was originally divested from Warner to boost competition more than a decade ago, IMPALA has also called on EU policymakers to protect cultural diversity.
“As we have consistently said in other cases, it is difficult to reconcile the fact that a business divested to boost competition by strengthening the independent sector should be reacquired down the line,” said IMPALA in a statement. “Targeted finance options are also essential to help build the next Zebralution. We must keep cultural diversity and smaller players at the heart of Europe’s approach and facilitate our growth and competitiveness. IMPALA’s Industry Plan sets out concrete proposals for a coherent, structured and ambitious EU policy for culture. Let’s make Europe the best place in the world for culture.”
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