HITS Daily Double


Downtown Music Holdings
will become the leading global provider of end-to-end services in the biz following today’s move to acquire AVL Digital and its portfolio of companies including AdRev, CD Baby, DashGo and Soundrop. Downtown Founder and CEO Justin Kalifowitz said "Beyond shared values, the acquisition of AVL expands upon our existing portfolio and represents Downtown's strategy of developing and investing in preeminent music businesses serving the full spectrum of music creators."

AVL first pioneered digital distribution for indie artists back in 2003 as a launch partner for iTunes. The company’s portfolio presently represents the largest independent sound recording catalog in the industry, boasting a client base of over 900,000 artists, labels and other rights holders, and distributing and monetizing over 10m tracks across the major DSPs.

AVL will be led by Tracy Maddux, CEO of CD Baby, which alone generated $100m in earnings for its artists, accounting for almost 1/6th of global independent artist revenue in 2018 per MBW. Kalifowitz praised Maddux and his team for building “a portfolio of music businesses operating at unmatched scale. AVL's technology, diverse offerings and artist-first approach are well-positioned to power some of the fastest growing segments of the industry."

"This transaction will allow us to take the services we offer the independent music community to the next level," added Maddux. "We are excited to continue to build leading platforms that help artists release, promote and monetize their music all around the world."

As a result of the acquisition, expected to close in early April and will see AVL Digital and its portfolio companies operating as a separate subsidiary of Downtown Music Holdings, Downtown will have over 300 employees in 14 markets across North America, Europe, Asia, Australia and Latin America.