MAR 19, 2015
SONY MUSIC TO PURCHASE REMAINING INTEREST IN THE ORCHARD, THE WORLD’S LEADING INDEPENDENT DIGITAL DISTRIBUTOR
NEW YORK—March 19, 2015—Sony Music Entertainment today announced that it has entered into an agreement with Dimensional Associates, LLC to acquire the remaining interest in The Orchard, the global independent music, video and film distribution company. The Orchard will continue to operate separately from Sony Music and will be led by its existing executive team.
The deal is aligned with Sony Corp.’s recently announced strategy identifying Sony Music as one of its growth businesses. Sony plans to proactively invest in and implement a variety of measures to promote growth across its entertainment businesses, including music.
The Orchard is focused on providing world-class digital distribution services for content creators including independent labels and filmmakers. It offers clients an end-to-end solution for music and video delivery to hundreds of services and digital storefronts worldwide, as well as efficient and transparent reporting of sales and revenue. The sales, digital marketing and business development offerings also included in The Orchard’s suite of services have helped it outpace the industry in growing revenue for its clients.
Sony Music became the majority investor in The Orchard in March 2012 following the merger of The Orchard with IODA, a Sony Music-owned digital distribution company. At that time, The Orchard became the digital distributor for RED and select catalogues from Sony Music affiliates outside of the U.S.
This investment in The Orchard will allow Sony Music to further enhance its relationships with distribution clients all over the world. It also will allow the companies to work more closely together to drive improvements throughout the digital supply chain and quality of revenue reporting. Sony Music remains committed to operating The Orchard independently with the goal of improving the revenue and profitability of its distribution clients.
The acquisition is subject to necessary regulatory approvals.
Citigroup served as the financial advisor to Sony Music Entertainment on the transaction and UBS Securities, LLC served as the financial advisor to The Orchard on the transaction.
About The Orchard®
The Orchard is a pioneering music, video and film distribution company and top-ranked Multi Channel Network operating in more than 25 global markets. With a holistic approach to sales and marketing combined with industry-leading technology and operations, The Orchard amplifies reach and revenue across hundreds of digital, physical and mobile outlets around the world. The Orchard streamlines content owners’ business complexity with an intuitive client dashboard, comprehensive rights management and tailored client support. Founded in 1997, The Orchard empowers businesses and creators in the entertainment industry. For further information, please visit www.theorchard.com.
About Sony Music Entertainment
Sony Music Entertainment is a global recorded music company with a current roster that includes a broad array of both local artists and international superstars. The company boasts a vast catalog that comprises some of the most important recordings in history. It is home to premier record labels representing music from every genre, including Arista Nashville, Bazmark Records, Beach Street Records, Bystorm Entertainment, Columbia Nashville, Columbia Records, Day 1, Descendant Records, Epic Records, Essential Records, Essential Worship, Flying Buddha, Fo Yo Soul Recordings, Freesolo Entertainment, Kemosabe Records, Latium Entertainment, Legacy Recordings, Louder Than Life, Masterworks, Masterworks Broadway, OKeh, Polo Grounds, Portrait, RCA Inspiration, RCA Nashville, RCA Records, Reunion Records, Sony Classical, Sony Music Latin, Star Time International, Syco Music, Vested in Culture and Volcano. Sony Music Entertainment is a wholly owned subsidiary of Sony Corporation of America.