Downtown expands into the neighbouring rights market with Justin Bieber and Tori Amos as initial clients

Downtown's Dean Francis

By Emmanuel Legrand

US independent music company ​Downtown​ Music Holdings​ has ​set up Downtown Neighbouring Rights, a new stand-alone unit dedicated ​to the collection and distribution of performance royalties​ for sound recordings​.  ​Dean Francis (pictured, above) has been named General Manager of the new unit, which will be based in London.

  Downtown said the new structure will have direct affiliations with more than 50 collection societies and performance rights organisations around the world and will provide "global scale and transparency to maximise the income due from its clients’ performances on sound recordings." Initial clients include Duff McKagan of Guns N’ Roses, Justin Bieber, Kimbra, Koffee, Nikki Sixx of Mötley Crüe, OneRepublic, Ryan Tedder, Tori Amos, and Young T & Bugsey, among others.

  Francis joined Downtown in 2018 to take charge of neighbouring rights collections for Downtown Music Publishing. Before that, he spent more than a decade with British neighbouring rights collection society PPL.

Extension of clients' interest

  ​Downtown said the move to create the new division followed ​"​significant expansion of and client interest in the neighbouring rights capabilities offered as a service within Downtown Music Publishing and to label clients through FUGA​." FUGA is a digital distribution and rights management company based in the Netherlands that was acquired in January 2020 by Downtown Music Holding​s​.​

  FUGA's neighbouring rights capabilities will be integrated into Downtown Neighbouring Rights throughout the remainder of 2020​.​ ​Downtown guaranteed that the services offered to both Downtown Music Publishing and FUGA clients ​"​will remain unchanged by the new unit's establishment.​"​

  “With revenue from touring and live performance dramatically reduced, artists and record labels are bringing added scrutiny and focus to important income sources like neighbouring rights,” said Andrew Sparkler, Executive Vice President of Global Business Development for Downtown Music Holdings. “By centralising the neighbouring rights expertise from across Downtown-owned companies into a single business unit, and with oversight by an executive with deep industry knowledge of the space, we can more efficiently support our clients who want the same kind of professional management and transparency available through other Downtown companies.”

Advising careers

  Francis added: “We have a bespoke approach and a more involved relationship with our clients. Though our principal role is maximizing their neighbouring rights collection, we are also uniquely positioned to play a broader advisory role in their careers — utilising our comprehensive understanding of publishing and distribution as well as the technological solutions that Downtown’s multifaceted portfolio of innovative businesses provides.”

  ​The global neighbouring rights markets is estimated to be north of $3 billion a year, with the US being the leading market, followed by the UK, France, Japan and Germany. Some 50% of the world's neighbouring rights collections are taking place in Europe.