Concord Acquires Stem Distribution to Boost Indie Artist Services

Nashville-based publishing and catalog giant Concord said on Monday it agreed to acquire Stem Distribution, a 10-year-old independent digital distribution company.

Terms of the deal were not disclosed. Reports from early March put the price tag at above $50 million, according to Music Business Worldwide.

Adding Stem to its portfolio will help Concord’s expand its business signing and servicing up-and-coming artists. Stem is a distribution company and payment platform that has worked with artists like Brent Faiyaz, Chappell Roan, Julia Michaels and Mk.gee.

Known for originating digital royalty payment splits on songs with several collaborating artists, Stem expanded over the years to provide financial management technology and alternative sources of funding for independent artists seeking to run their own businesses. Joining Concord allows it to access its operational and financial resources.

Concord is among the biggest independent music companies, and its frontline record label business includes Rounder Records, Concord Jazz, Fearless Records, Concord Theatrical Recordings and the Kidz Bop franchise.

Concord also has joint ventures in Loma Vista Recordings with Tom Whalley; Easy Eye Sound with Black Keys frontman Dan Auerbach; and PULSE Records with PULSE Music Group. Launched in 2023, PULSE Records saw major success with Tommy Richman’s hit “Million Dollar Baby,” which Billboard estimates generated $4.99 million from on-demand audio streams and digital song sales in 2024.

Concord Label Group CEO Tom Becci said that through Stem, Concord is seeking to support “independent artists and entrepreneurs.”

“The success of the indie community is vital to the long-term growth and health of the music industry,” Becci said in a statement. “Our investment … will equip [Stem] with the tools necessary to deliver first-class service across the globe while further modernizing the indie music landscape.”

Stem founder CEO Milana Lewis described the acquisition by Concord as an opportunity for expansion. Lewis and President Kristin Graziani will continue to lead Stem under the Concord umbrella.

“With Concord’s backing, we gain more fuel for the engine and a global team to help us scale,” said Lewis. “We’re doubling down on raising the standard for independent artists.”

“Concord’s capital, comprehensive global label services and strategic expertise across recorded music will immediately strengthen Stem’s offering,” stated Graziani.

Stem will spin off its Tone business, which houses royalty accounting and other financial tools for record labels owned by Stem. Concord will be one of Tone’s investors.

Concord received outside legal counsel from Reed Smith and tax advice from KPMG. Stem received financial advice from Raine Group, and outside legal counsel from Rachel Totten and Natalie Martirossian of Goodwin Procter, Sarah Graham from Gibson-Dunn and Laxmi Vijaysankar at Serling Rooks Hunter McKoy Worob & Averill.