Ruth Barlow of AIM and Beggars Group on UMG, Downtown and why she believes ‘regulators must act’ – Music Business Worldwide

MBW Views is a series of op/eds from eminent music industry people… with something to say. The following MBW op/ed comes from Ruth Barlow, Chair of the UK’s Association of Independent Music (AIM) and Director of Live Licensing at the Beggars Group. Barlow’s career in music spans 25+ years, with experience across radio, live music strategy and licensing, and she is a long-term champion for the rights of independent labels, artists, and their partners. Barlow also serves on the board of UK Music and is a board observer for Earth Agency and BPI Council.

In his New Year’s memo to Universal Music Group (UMG) staff, Lucian Grainge attempted to paint the company as a champion of independent music. But the reality is far less inspiring – and increasingly worrying for our community. Behind his corporate speak lies a stark truth: UMG’s relentless market consolidation, aggressive acquisitions and deep financial entanglements are eroding the very foundation of the recorded music ecosystem.

While the memo claims UMG is “not a financial institution that views music as an “asset”, its actions tell a different story – one where music is increasingly treated as a commodity to be controlled, packaged, and leveraged for maximum shareholder value.

This isn’t just a challenge for independent labels; it’s an existential threat to artistic diversity, fair competition, and the music landscape itself. If regulators fail to intervene, UMG’s unchecked expansion will leave artists and independent labels with fewer options, less autonomy, and a market increasingly dictated by financial speculation rather than creative vision. All of this will lead to a poorer choice of music for fans.

AIM stands alongside IMPALA and our other sister organisations worldwide in urging competition authorities to take immediate action against UMG’s expanding market dominance and tightening grip on the industry. The European Commission has now received a referral request from a member state regarding UMG’s acquisition of Downtown. We urge the EC to open an investigation urgently.

Furthermore, we call on the UK’s Competition and Markets Authority (CMA) to investigate the impact in the UK. The CMA already concluded, in its market study of Music and Streaming in 2022, that further consolidation could be cause for competition concern. Given the scale of UMG’s acquisitions and growing market powers, it’s time for the CMA to review and act – to protect the UK market for the benefit of all – consumers, artists, and independent businesses alike.

UMG’s growing influence over streaming platforms – particularly through its “Streaming 2.0” strategy – has led to changes to payment models that independent music has no choice but to accept, often resulting in less favourable terms for those who need the most support, including emerging and niche genre artists. In some cases, it has even led to the de-monetisation of large parts of their catalogue.

Beyond their expanding control, UMG’s false rhetoric – presenting itself as ‘independent’ – is a direct challenge to the integrity of the long established and truly independent music community; one that must not be overlooked. Already the largest music company in the world, UMG’s planned acquisition of Downtown is designed to severely restrict competition, forcing independent labels and artists into a position of increasing dependency on UMG for access to essential services and distribution channels. While some independent labels or artists actively seek and benefit from partnerships with major labels, this should remain a choice – not an inevitability born out of dwindling alternatives.

One of the most alarming aspects of UMG’s acquisition strategy is the unfair competitive advantage it would gain by controlling platforms like Downtown-owned FUGA and Curve. These services handle sensitive data that inform the terms on which many of our members’ labels and artists negotiate deals with DSPs and other key commercial partners. With access to this proprietary information, simply put, UMG would be able to manipulate the market, outbid competitors and structure deals to its advantage – putting many independent businesses at a severe disadvantage.

To be clear, UMG is not the only major label engaging in these practices. The industry has long been shaped by the dominance of the few majors, all of which have played a role in reducing competition and centralising control. But UMG’s current trajectory is particularly aggressive and sets a dangerous precedent accelerating a trend for further consolidation.

The rise of independent labels has proven that there is an alternative to corporate-driven music models. Independents invest in artists for the long haul, reinvesting profits into creative development rather than short-term shareholder returns. Our founders and owners are hands-on, actively involved in the day to day running of their businesses, and cultivate meaningful relationships with the artists they support.

This is not about independents claiming any moral superiority; both independent and major models have their place, and many artists and labels choose to work across both. But if consolidation continues unchecked, the viability of independence as a choice could be eroded, limiting the diversity of music released.

UMG’s self-proclaimed “aggressive” expansion should already be ringing alarm bells for regulators. The question is not whether UMG should be successful – it already is – but whether its growing dominance in distribution, streaming negotiations and market services is creating barriers that limit competition, restrict access and ultimately reduce the opportunities available to artists and consumers.

The independent sector has always thrived on resilience and innovation – but without meaningful intervention, even the most committed independent will struggle to compete in an industry increasingly being designed to serve the few at the expense of the many. I urge the CMA and other national regulators to act now – before it’s too late.Music Business Worldwide