UMG's juggernaut strategy rages on - 8Ball Music acquired in the Netherlands and disproportionate streaming 2.0 push from Amazon

07 March 2025 - Press release

 

As we warned in our statement last week, UMG's juggernaut strategy of rapid acquisitions continues, with 8Ball Music, a Dutch independent label and IMPALA member, being the latest independent to be bought.

Helen Smith, IMPALA's Executive Chair commented: "It's credit to Tony and Floris that 8Ball Music is such a successful company. We thank them for all their support as members and on our board over the years. At the same time, we remain concerned that hardly a week goes by without another major acquisition making headlines. This is another reason why regulators need to hit pause on these acquisitions, as we set out in our detailed submission to key competition authorities last week. There comes a point where big is simply too big, and the scale can impact outcomes for a whole market. It's time to put a stop to Universal's juggernaut strategy."

Kees van Weijen, Chairman of Dutch association of independent labels Stichting Onafhankelijke Muziek Producenten (STOMP) and board member of IMPALA added: "With the purchase of 8Ball Music by UMG, STOMP will lose a very dedicated Dutch independent label, as well as Floris Janssen, one of our board members. It is with great regret that we see them leaving the indie fold, as they have played an important role in growing the independent sector. Thanks to Tony and Floris at 8Ball for their contribution to STOMP and IMPALA".

Helen Smith continued: "Our members are also concerned by other aspects of UMG's juggernaut strategy. Take streaming payment changes for example. UMG made it very clear in press releases that its new deal with Amazon announced at the end of last year is part of its bid to impose its view of how streaming revenues should be allocated. Dubbed "Artist-centric" and "Streaming 2.0" in Lucian Grainge's memo last month, we are seeing the impact of this right now as labels assess what this means."

Helen Smith continued: "Amazon is one example in real time. Working alongside AIM and other members, the reports coming in are very clear. Independents are being asked to sign terms with Amazon based on thresholds that have a disproportionate impact on their artists and revenue with some reporting that around 70% or more of their repertoire is being demonetised overnight and a large number of artists being impacted in some way."

Gee Davy, CEO of AIM and board member of IMPALA added: "It's time to pause 'Streaming 2.0' and properly assess how this impacts artists and labels outside of the few large corporations. Acquisitions like Downtown and 8Ball will only give an already hugely dominant market player more power to control streaming terms for the whole market. This is more ammunition in one single week for regulators to step in."
 
The question of consolidation and control of the digital market is high on IMPALA's agenda. With a board meeting scheduled in Stockholm next week hosted by Swedish association SOM at the manifest conference, IMPALA is also looking at questions such as access to finance, exit strategies and alternative business structures to ensure founders and entrepreneurs have options.