A New Era Unfolds: Proper Group Achieves Strategic Milestones, Sets Sights on Future Innovations Under Veteran Music Leadership

13 May 2024 - Press release

 

● Shareholders endorse rebranding under Proper Group at 3rd May AGM 

● Proper Group further capitalises on four strategic areas – Distribution, Payments, Processing and Music Data, and looks to expand within home entertainment 

● Strategic realignment has been initiated with the process expected to conclude by end of the year 

● Proper Group is closing its Swedish entity and consolidating UK and Swiss entities to streamline operations 

● Aligned with this, Michael Stebler, CEO, who executed a successful strategic realignment of the organisation, to conclude his term 

● The company will then focus on music business leadership, with Drew Hill set to become CEO of Proper Distribution and related payment services 

● Further appointments will follow as the company focuses its technology on customer-driven demand.

 

As technology rapidly evolves in the music industry, Proper Group is strategically repositioning itself to better serve its partners and capitalise on emerging market trends and demands. At its recent Annual General Meeting, shareholders confirmed that the Proper brand will represent its consolidated efforts in Music Distribution and Music Tech. At its core, Proper Group remains committed to ensuring, enabling, protecting, and maintaining fair payment for creators, highlighting its commitment to maximising growth potential. 

Last month, Proper Distribution (combining the original Proper Music Group and UDS) recorded its fifth busiest month to date since Proper began trading in 1989. The previous November also saw its Bicester warehouse ship its highest ever tally of 3.3+ million units. These recent high figures, coupled with UDS' relocation to Bicester's 25,000sq metre facility in August 2023, have laid the foundation for a strategic consolidation under the Proper brand. 

In conjunction with these efforts, Proper Group is planning to move more of its operational activities to London, ensuring a more focused approach that aligns with its long-term goals and brings it closer to its European music industry clients and commercial interests. 

Since December 2023, Proper Group has embarked on a transformational journey toward sustainable growth. In January, leadership transitioned from Mattias Hjelmstedt to Michael Stebler, who assumed the role of CEO to oversee strategic realignment on an interim basis. 

Stebler's key achievements with his management team include putting new corporate governance in place, realigning strategy, rebranding, significant cost reductions, and increasing revenue growth.

With Stebler concluding his term as CEO, the company will then focus its efforts on two distinct areas. Proper Distribution's new era will be led by music industry veteran Drew Hill, who will become CEO of Distribution and payment-related services. Meanwhile, the company's Music Tech division — which encompasses Proper Payments, Proper Processing, and Proper Music Data and focuses on accelerating royalty payments, enriching metadata, managing releases, and processing royalties — will soon announce a C-level position.

In alignment with its goal of building a sustainable business, Proper Group will regretfully be liquidating the Utopia Swedish entity and UK Utopia Accelerate entity. This will also mean that the Swiss entity is being right-sized to reduce operational costs, to further support growth in the UK, and align with market demand. Proper Group very much appreciates the dedication and hard work of all its staff members, and extends sincere thanks to those affected during this transition for their significant contributions. 

Michael Stebler, CEO: "As we step into a new era of growth and technological advancement at Proper Group, I want to express my sincere sorrow that part of our journey involves parting ways with some of our valued colleagues. These are not decisions we take lightly, and I am deeply thankful for the hard work and contribution of those who are affected. Our commitment to our partners and the creative sector is stronger than ever, and I believe that our recent strategic decisions will allow us to serve them even better."

Added Drew Hill, Deputy CEO: "It's tremendously difficult to part ways with colleagues who have contributed so much to our journey. It is one of the hardest decisions we face as leaders. These decisions weigh heavily on us, but regretfully have been required. Looking to the future, the promising growth and recent achievements give us confidence in a brighter future. We are committed to our vision of enhancing our services and technology to better support our creators and clients, making this transition vital for our long-term success."

With these changes soon to be in place, Proper Group looks forward to entering a new era focused on delivering exceptional service to clients, becoming better partners to the creative sector, meeting growing demand and expanding its capabilities.