Warner to shut its TuneCore rival Level Music

Wednesday 02 October 2024

Warner Music Shuts Down Level Music to Focus on ADA Artist Services

Warner Music Group (WMG) has announced the closure of Level Music, its digital distribution platform for independent artists, which launched in 2018. The decision, confirmed by WMG on September 26, 2024, marks the latest instance of a major music company pulling back from the DIY distribution space.

In an email to Level Music users, the platform stated it will no longer accept new content submissions or edits to existing releases effective immediately. All live releases will be removed from digital streaming platforms (DSPs) by November 18, 2024, with users given the option to request earlier takedowns. Users must also withdraw all funds from their Level Wallets by July 11, 2025, as the platform will cease operations entirely on July 31, 2025.

Warner Music Group explained that the shutdown is part of a strategic move to focus on its independent label and artist services division, ADA (Alternative Distribution Alliance). "We’re concentrating our efforts behind the ADA brand, continuing to strengthen our global services for artists and label partners across the independent community," WMG said in a statement, noting the company’s ongoing investment in both team development and technology.

This decision follows a broader trend in the music industry, with Universal Music Group’s Spinnup also transitioning away from DIY distribution in May 2022, before closing its doors completely by December 2022.

Preparing for the Shutdown

Level Music users have been advised to export their assets and metadata to help ensure that their play counts and playlist placements remain intact when moving their music to another distributor. Warner Music has set July 31, 2025, as the final date for Level's operations, with all distribution agreements terminating on that date.

WMG’s Focus on ADA

Warner Music’s decision to shutter Level Music coincides with several significant moves within ADA this year. The independent artist services unit, under the leadership of ADA President Cat Kreidich, has continued to expand its reach, including the recent recruitment of former TikTok executive Corey Sheridan as ADA’s Global Head of Commerce and Revenue. Sheridan’s role will focus on driving commerce and partnerships for ADA artists and labels, leveraging his previous experience at TikTok and parent company ByteDance.

ADA has also been expanding globally, appointing Sarah Ismail as Managing Director of ADA Asia in May 2024, with a focus on growing the company’s presence in the region. Additionally, ADA has inked deals with prominent artists and labels such as Kesha’s FTS Management, MDM Recordings, and South Coast Music Group.

Warner’s Long-Term Strategy

The closure of Level Music and the emphasis on ADA align with Warner Music Group’s broader strategy of growing its presence in the "middle class" artist market. WMG CEO Robert Kyncl has highlighted the company’s focus on both internal development and potential merger and acquisition (M&A) opportunities to accelerate growth in this sector.

In March 2024, Warner considered acquiring Paris-based music company Believe but ultimately decided against pursuing the deal. However, WMG’s leadership has signaled an ongoing interest in M&A opportunities that align with its distribution and artist service goals. In July 2024, WMG acquired a minority stake in Brazil’s Sua Música Group, a user-generated content platform that also offers digital distribution and artist management services, marking another step in expanding Warner’s independent artist services ecosystem.

As Warner Music continues to prioritize ADA and independent artists, the closure of Level Music marks a shift in the company’s approach to supporting DIY distribution. This strategic pivot reflects the evolving landscape of the music industry and Warner’s commitment to providing comprehensive services for independent artists and labels.