LONDON — Utopia Music plans to rebrand as Proper Group AG, named after its core physical music distribution business, to reflect changes in the Swiss-based company's “strategic direction,” the company said Thursday ( March 28).
The proposed name change, which must be approved by shareholders, comes nearly two months after co-founder and former chief Matthias Hjelmstedt left Utopia Music after a shakeup of its executives.
“As Utopia has evolved under new leadership, we recognize the need to align our brand with our new strategy and therefore new market position,” he said. Michael Stablerwho was appointed CEO in January, in a statement sent to Advertising sign.
“Our previous brand identity does not accurately reflect who we are today and where we aim to go in the future,” said the CEO – former CEO of Investment Advisors Zug AG, which acted on behalf of Utopia's majority shareholder group. Like Utopia Music, Investment Advisors Zug AG is based in the picturesque Swiss town of Zug, located near Zurich.
Utopia Music has acquired Proper Music Group, the UK's largest independent physical music distributor, which provides distribution services for nearly 6,000 indie labels and service companies, for an undisclosed sum in January 2022.
Eight months later, the company bought the assets of UK-based Cinram Novum — which provides warehousing, fulfillment and distribution services to music and home entertainment companies including Universal Music Group, Sony Music Entertainment and [PIAS] — and renamed it Utopia Distribution Services (UDS).
Both acquisitions came during a period of intense hyper-growth between 2020 and 2022, when Utopia rapidly acquired 15 companies spanning music technology, finance, publishing, marketing and distribution.
A well-documented downsizing followed, which included multiple rounds of job cuts, company divestments and ongoing legal action, ultimately leading to the appointment of a new CEO and executive team at the start of the year.
Changing the company's name to Proper Group “represents a new beginning,” Stebler said, “and reflects changes in our strategic direction, where distribution is at the core of the commercial value chain.”
Under the new regulation, Advertising sign understands that Utopia/Proper Group will be divided into four main divisions: Proper Distribution, Proper Payments, Proper Processing, and Proper Music Data.
Together, the company says, they will provide customers with a “comprehensive suite of technology services” – including cross-platform analytics and royalty tracking, processing and payments – all built around the company's long-established music distribution business most of the revenue.
“By leveraging the Proper brand,” the company “will benefit from the positive and strong brand equity that Proper has in the music industry,” Stebler said.
The company's executive team remains unchanged with Stebler supported by deputy managing directors Alain Couttolenc an.d Drew Hilla long-time veteran of the UK physical music industry who doubles as head of distribution for Utopia/Proper Group.
Hill's responsibilities include overseeing the UK's largest distribution warehouse for physical music and home entertainment – a 25,000 sq m facility in Bicester with the capacity to handle up to 250,000 units a day – which Utopia opened last year as part of a £100m pound ($125 million) long-term agreement with international logistics company DP World.
More recently, Utopia has successfully secured approximately half of its Series C funding round (over €15 million in total) with a second tranche of C-round funding underway. The funds will be used to drive commercial growth, boost product development and strengthen the company's balance sheet, Stebler said. Advertising sign in January.
Shareholders will vote on the proposed name change when Utopia holds its Annual General Meeting in early May.
from our partners at https://www.billboard.com/business/business-news/utopia-music-name-change-proper-music-group-rebrand-1235644556/
