UK-based Correct Music Group Ltd (PMG) went into administration on Friday (February 28). The corporate’s property, together with bodily distributor Correct Music Distribution (PMD), have been acquired by Netherlands-based distributor Artone.
Correct says that it distributes bodily music for over 5,000 impartial labels and providers corporations and claims to have a 13% share of the UK’s bodily music market.
The corporate studies to have paid out £63 million to musicians and labels within the final two years.
Information of Correct Distribution’s acquisition by Artone marks the top of its tumultuous affiliation with Switzerland-born Utopia Music.
In keeping with the announcement on Friday (February 28), Correct Music Group’s buying and selling corporations will not be affiliated with Switzerland-headquartered Correct Group AG, previously often known as Utopia Music, for which chapter proceedings have been initiated in September 2024.
The ‘Correct’ title was adopted by Utopia round two years after it acquired Correct Music Group (in January 2022), when Utopia expanded into bodily and digital music distribution. It was reported in March 2024 that Utopia was altering its title to Correct Group.
Drew Hill, who has led Correct Music Distribution for 18 years, will stay its Managing Director. Hill has additionally acquired a stake within the PMG property.
Friday’s press launch added that the acquisition will “allow purchasers of each PMD (together with Absolute Label Providers, Consider, Cherry Crimson and Chrysalis/Blue Raincoat) and Artone (together with Harmony Music Group and Reveal Data) to unlock sweeping pan-European offers for distribution, manufacturing, packaging, retail and D2C gross sales”.
In keeping with Correct, the sale has been agreed alongside the signing of a brand new multi-year lease for PMD’s warehouse in Dartford, within the UK.
“This subsequent step is a chance to safe the way forward for the enterprise and proceed to ship a bespoke service to impartial artists and labels.”
Drew Hill
Hill mentioned: “In its 35 years, Correct Music Group has all the time strived to go above and past for its companions. This subsequent step is a chance to safe the way forward for the enterprise and proceed to ship a bespoke service to impartial artists and labels.
“I’ve labored carefully with Artone and Bertus Distribution through the years, and collectively we’ll proceed to champion a wholesome and aggressive bodily distribution sector which ensures variety of alternative.
”Bodily codecs proceed to take pleasure in a rising resurgence as a viable supply of monetary income for artists of all sizes. In keeping with ERA, bodily music revenues within the UK reached £330.1m in 2024, up 6.2% from 2023, with vinyl album gross sales rising quicker than music streaming (7.8%) by 10.5% to £196m.
“By bringing PMD into the Artone household, we guarantee its continued success and supply stability for its companions.”
Jan Willem Kaasschieter, Artone
Jan Willem Kaasschieter, CEO at Artone: “Artone has been actively on the lookout for alternatives to develop its distribution footprint, and PMD represents an ideal match. PMD has performed an important function in supporting impartial labels and artists within the UK.
“By bringing PMD into the Artone household, we guarantee its continued success and supply stability for its companions. Our experience, monetary energy, and in depth community will assist the long-term progress of the enterprise and preserve a robust, numerous bodily music market. We stay up for working carefully with Drew and the Correct crew to construct on its legacy.”
Mark Supperstone, Accomplice at Evelyn Companions and joint administrator to PMG, mentioned: “We’re happy to announce this sale which successfully secures the way forward for bodily music distribution for impartial labels within the UK.
“There was a excessive degree of curiosity in buying the buying and selling group and, having labored carefully with Drew and his crew for a while, we’re happy to finish the cope with Artone, who’re in a position to supply many synergies that can allow the companies to flourish within the years to return. We want all of them the most effective.”
“Artone and Drew Hill’s joint acquisition of PMG’s buying and selling corporations is improbable information for the impartial group, which overperforms in its share of the bodily music market.”
Gee Davy, AIM
Gee Davy, CEO at AIM, mentioned: “Artone and Drew Hill’s joint acquisition of PMG’s buying and selling corporations is improbable information for the impartial group, which overperforms in its share of the bodily music market. Drew’s 18 years’ expertise on the helm of Correct Music Distribution mixed with Artone’s pan-European experience will little question be certain that the UK’s bodily music sector continues to thrive.”
“Our members, significantly our 270 indie retailer members, want all of them the most effective of their new incarnation.”
Kim Bayley, ERA
Kim Bayley, CEO of digital leisure and retail affiliation ERA, whose members account for greater than 80% of gross sales of CDs and vinyl within the UK, added: “Impartial music is an important a part of the UK’s music ecosystem and the inventive spine of UK music.
“We’re due to this fact delighted that the UK’s main indie distributor Correct Music Group will now take pleasure in a brand new life below the succesful management of – ERA board member – Drew Hill in partnership with Artone. Our members, significantly our 270 indie retailer members, want all of them the most effective of their new incarnation.”Music Enterprise Worldwide
