Update on my Downtown/FUGA distribution analysis
I wanted to send you all a quick update on my analysis of Downtown’s acquisition of FUGA from last week.
Based on reader feedback, there are two main points to add:
1. FUGA’s reach is much larger than the initial chart depicted
Let’s pull up my initial chart showing the wider distribution landscape, with red boxes around the companies that are now under the Downtown Music Holdings umbrella:
This chart depicts FUGA’s business as similar to those companies in the same segment — namely Caroline, The Orchard, Ingrooves and ADA, which are all owned by major labels and provide distribution services for artists and rights holders.
But my analysis missed a crucial difference: FUGA doesn’t just serve rights holders. They serve other tech companies, too.
In addition to working directly with labels, FUGA powers the underlying distribution and content-tracking technology behind the following companies:
- SoundCloud (source)
- LANDR (at least for YouTube Content ID; source)
- Spinnup (source)
- ReverbNation (source)
- Beatchain (source)
- Videomite (source)
- Verifi Media, a.k.a. DotBC (source)
- pre-shutdown, Beatport Baseware (source)
In other words, while Downtown owns four distributors, it’s actually now doing business with many more, thanks to FUGA.
2. A few other distribution companies warranted inclusion in the chart
My distribution chart is not meant to be exhaustive or completely comprehensive, but rather is intended to give a clearer structure and segmentation to a sector that previously had none. That said, there are a few other important distribution companies of note that I should have added to the chart earlier — including but not limited to:
- Equity Distribution (a closed distribution platform aimed at independent artists, owned by Roc Nation)
- Secretly Distribution (a closed distribution and marketing services company that works primarily with indie labels, including but not limited to Captured Tracks, Joyful Noise, Jagjaguwar, Dead Oceans and Sacred Bones)
- Entertainment One (a.k.a. eOne, a multifaceted entertainment company that distributes ~50 labels and recently got acquired by Hasbro)
So… here’s a new chart
Taking all of the above information into account, here’s an updated map of the music distribution market. I added the logos of Equity, Secretly, Entertainment One, LANDR, Beatchain and ReverbNation, while putting a dotted-red box around all the companies that are powered by FUGA on the backend, to better illustrate Downtown’s reach in the landscape:
My hunch is that the list I compiled of FUGA’s B2B distribution-tech clients, which is based on publicly-available sources, is likely non-exhaustive. If there are any others you think I should know about, please comment below or message/email me directly!
Thanks for reading. 🌊