Stem Co-CEOs Discuss Concord Acquisition Amidst Competitive Distribution Landscape
Milana Rabkin Lewis and Kristin Graziani, co-CEOs of Stem, have provided insight into the company's acquisition by Concord. They explained that increasing competition and the rising costs of deals in the artist services sector made it challenging for Stem to retain clients independently. The acquisition by Concord aims to provide the necessary capital and resources to compete effectively and retain artists long-term in a consolidating market.
Concord's acquisition of Stem, an independent artist services company, was announced last spring. This deal is part of a broader trend within the music industry, where major players are acquiring distribution and artist services firms. Examples include Universal Music Group's acquisition of Downtown, Warner Music Group's purchase of Revelator, and Sony Music's acquisition of AWAL in 2022.
Milana Rabkin Lewis and Kristin Graziani, Stem's co-CEOs, discussed the acquisition, noting that such deals are becoming increasingly vital for distributors. Lewis stated that Stem frequently lost bidding wars and saw major labels poach their clients due to rising deal costs. She cited artists and labels like Chappell Roan, Big Loud, Rimas, and Hundred Days as examples of those Stem could not retain because of financial limitations.
The co-CEOs believe that with Concord's financial backing, Stem now possesses the resources to become a long-term partner for emerging artists and label executives. Lewis highlighted Concord as an ideal match, offering both financial resources and operational autonomy. This partnership is expected to enable Stem to invest more significantly in artists, including current signees such as Nick Hakim, Jane Remover, Choker, Midrift, Giant Music, Boomer Records, and Bringin' It Backwards, and to expand its internal team.
(Source: Billboard)
