PIAS – the abbreviation of Play It Again Sam – is one of the greatest successstories in Belgian music history. The company groups several independentlabels. In June, PIAS and Universal Music Group entered into a strategicpartnership. This now translates into a partial sale, the acquisition price ofwhich is unknown.
In a letter to their partners, which was obtained by the trade website MusicBusiness Worldwide, founders Kenny Gates and Michel Lambot explain theirreasons for working with the powerful mega label Universal. Today we competewith technology and financial giants who don’t appreciate the culturalimportance of the artists and labels we work so hard for. ‘They see music asan investment to exploit ruthlessly for a quick return.’
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‘Our Belgian music is even streamed in Afghanistan’
In that new reality, a powerful shareholder like Universal is an importantweapon. With a market share of 40 percent, this group is by far the largestplayer in an increasingly concentrated music market. That gives UMG a strongposition at the negotiating table with players like Spotify, Apple or Amazon,when those new dominant music players want to exploit their catalog.
“A partner like Universal Music Group gives us extra support to compete andgrow,” said Gates. “This decision secures the future of our brand, ouremployees and our partners, while holding our future in our own hands.”
Quirky success story
Kenny Gates and Michel Lambot founded PIAS 40 years ago in Brussels. In those4 decades, the duo worked on what grew into an idiosyncratic success story.Today 300 people work for PIAS, in sixty offices around the world. And that bystubbornly betting on underground artists with little chance of making it tothe charts.
‘Trading in music is not rocket science’, is how Gates described the process afew years ago in a conversation with De Tijd. ‘It is a combination of a numberof components: passion, perseverance, stubbornness, a good vision and hardwork.’
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Today we compete with technology and financial giants who don’t appreciate thecultural importance of artists and labels we work so hard for. “
Kenny Gates and Michel Lambot
Founders of PIAS
Nevertheless, PIAS had to swim through some turbulent waters. The digitizationof the music industry turned the business model upside down, and thebreakthrough of streaming reshuffled the cards once again. Survival hung by athread several times.
But fifteen years ago, PIAS made the right choice in this rapidly changinglandscape when it decided to focus less on distribution for third parties andmore on its own catalogue. Today, it is mainly the catalogs of artists thatare streamed all over the world that make money in the music industry.
Grainge
The fact that in that reality there is a need for a strong partner like UMGtoday will probably feel a bit strange for a label that has invariably rowedstubbornly against the current of commerce. But it underlines the point thatUniversal CEO Lucien Grainge also makes in the communication about theinvestment.
The battle is no longer raging between major and indie labels. Today there isa gap between those who are committed to the development of artists and thosewho are more interested in quantity than quality. A healthy musical ecosystemneeds companies like PIAS that are committed to the development of independentmusical talent.’