Entertainment One is shutting down its physical distribution operation to use Warner Music Group's Alternative Distribution Alliance (ADA) to handle CDs and DVDs for its owned labels in North America. Distributed labels have the option to retain the company's digital distribution arm.
Entertainment One currently handles about 100 music and video labels, and will only be a digital distributor going forward. Canadian-owned labels currently using the firm's distribution service include Marquis Records, Linus Entertainment and True North Records. The Linus and True North deals were exclusively for physical product as the aligned two labels retain their own digital distribution in-house.
The deal also includes eOne owned music labels including eOne Music, Last Gang, Light Records, and Dualtone Records (which is already distributed through ADA).
Additionally, Entertainment One distributes labels such as Red House, Putumayo, Shanachie Entertainment, Real World, SPV, Silva Screen America, Tuff Gong, Pandisc, Sunnyside and Righteous Babe Records.
Earlier this week, eOne Music Worldwide president Chris Taylor issued a statement to accounts.
"As we all know, the music industry has continued to evolve rapidly. Over the past several years we have all experienced the ongoing decline in the sale of physical CDs. While we value the strong relationships we have built with our labels over the years, change has become inevitable.
"In order to build a stronger better future as well as continue to build our core music business, we will be doubling down on our digital marketing capabilities, such as editorial and cross genre play listing, featured track slider placements, digital features, and other initiatives which will dramatically increase our artists profile around the world as well as working with ADA to fulfill our continuing product orders in North America. This transition is expected to take place over the next several quarters."
He added that “We are excited to join forces with the team at ADA in North America,. It’s going to allow us to re-focus on our efforts on the recorded music side of our business while also freeing up room to expand our artist management and music publishing operations on a global level.”