Believe Digital Acquires TuneCore…

A couple independent digital distributors have consolidated. Label service company Believe Digital has acquired indie artist distribution company TuneCore. The press release describes it as a “partnership”, but it is an acquisition.

TuneCore artists will get access to Believe Digital’s wider distribution network and label services, with offices in 29 countries and a staff of 250.

Denis Ladegaillerie, Believe Digital Founder and President, says:

“The success of TuneCore, its deep commitment to independent artists, and the natural synergy between our services for artists, make this partnership a powerful force to propel artists’ growth. There is a tremendous opportunity for TuneCore & Believe to champion independent artists and their entrepreneurship, and together our focus will be to provide the best comprehensive services to a wider range of musicians around the world.”

TuneCore has paid out a total of $504 million to artists, though its broader business model has largely disappointed.  In heady days of last decade, VCs plowed money into ‘DIY’ artist distribution services like TuneCore, but a myriad of issues ultimately dampened revenues and prevented giant ‘exit events’ like IPOs and major acquisitions.  Believe’s more label-focused digital distribution segment has also faced serious pressures, which makes the consolidation less about growth and more about survival.

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Source: Industry News