Concord has acquired Stem Distribution, which provides personalised distribution, digital strategy, data-driven insights and playlisting for independent artists and labels.
It will continue to be operated as a separate division within Concord Label Group, led by its existing CEO Milana Lewis and president Kristin Graziani.
Terms for the deal were not disclosed.
“From new and emerging talent to some of the industry’s biggest stars, Stem has a proven track record of identifying and nurturing the careers of artists at all levels,” said a statement. “Concord’s ownership will afford Stem the capital and resources to invest in new technology and build the necessary infrastructure to expand upon its already robust suite of label services and accelerate Stem’s global expansion.”
Stem will now be able to tap into the operational and financial resources of Concord. Current staffing and operations are not anticipated to be affected by the deal.
Tom Becci, chief executive of Concord Label Group, said: “The success of the indie community is vital to the long-term growth and health of the music industry. Our investment in Stem will equip them with the tools necessary to deliver first-class service across the globe while further modernising the indie music landscape. Our focus on bolstering independent artists and entrepreneurs has never been clearer.”
Concord CEO Bob Valentine added: “Milana and her team have spent a decade creating a company that provides immense value to both artists and labels. Like Concord, their focus has always been giving artists the tools they need to realise their visions and grow their careers. I am excited to welcome the Stem team to Concord and look forward to witnessing our collective success.”
We’re doubling down on raising the standard for independent artists and proving what’s possible when they have the right support behind them
Milana Lewis
“From day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy. We’ve built a platform that has consistently launched the hottest artists in the world by assembling the right components – discerning taste, cutting-edge financial tools, seamless distribution, bespoke marketing strategies and high-touch creative services,” said Stem founder and CEO Milana Lewis. “Now, with Concord’s backing, we gain more fuel for the engine and a global team to help us scale. This isn’t an exit – it’s an expansion. We’re doubling down on raising the standard for independent artists and proving what’s possible when they have the right support behind them.”
“Stem and Concord both serve as trusted and successful partners to independent artists,” said Kristin Graziani, Stem president. “Bob, Tom, Vic, and the Concord team have built an incredibly impressive, durable business across multiple facets of the industry and we are honoured to be their selected partner as they enter the rapidly growing and sought-after distribution space. We know Concord's capital, comprehensive global label services and strategic expertise across recorded music will immediately strengthen Stem's offering, while allowing us to continue to deliver on our promise of empowering independent artists and labels.”
As part of this transaction, Tone, the business platform for royalty accounting and other financial tools for record labels under Stem ownership, is being spun off and will be a standalone business with Concord as one of its investors.
Concord’s outside counsel was provided by Reed Smith with tax advisory by KPMG.
Stem’s team was led by Raine with a team of female counsel: Rachel Totten and Natalie Martirossian from Goodwin Procter, Sarah Graham from Gibson-Dunn and Laxmi Vijaysankar at Serling Rooks Hunter McKoy Worob & Averill.
PHOTO: (L-R) Milana Lewis, Tom Becci, Kristin Graziani (Credit: Erica Hernandez)
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