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Business News Deals Labels & Publishers
[PIAS] announces new logistics alliance as Arvato pulls out of UK music distribution
By Chris Cooke | Published on Monday 2 February 2015
![[PIAS] UK](https://archive.completemusicupdate.com/wp-content/uploads/2014/07/piasuk.jpg)
The UK distribution division of [PIAS], which works for numerous indie labels, last week announced a new alliance with logistics firm Cinram, which will take over from Arvato in handling the physical supply chain of records distributed by the group.
Confirming the shift, [PIAS] UK’s Richard Sefton told reporters: “Cinram understands our business very well and we’re looking forward to combining our skills to provide a market leading solution for the artists and labels [PIAS] is proud to work with”.
While Dean Watkins at Cinram added: “Music is at the very heart of Cinram’s heritage. [PIAS] is therefore a natural fit for us and we are delighted to welcome them and their extensive range of exciting labels as a new client. With both parties’ progressive attitude and passion for the sector, there is great scope and flexibility for us to build on the relationship as the industry evolves”.
Confirmation of the [PIAS]/Cinram partnership came as Arvato, a division of German media giant and BMG owner Bertelsmann, announced it was pulling out of the UK music distribution sector, a decision that will result in the closure of its Milton Keynes site. Arvato, which will continue to work in music distribution elsewhere in the world, previously handled logistics for all the majors as well as [PIAS] in the UK.
Commenting on the latest developments in the music distribution domain, the MD of another independent label distributor, Proper’s Drew Hill, told CMU: “It’s a very competitive marketplace, with some consolidation almost inevitable, and our sympathies go to all those employees facing redundancy. With Proper, Sony DADC, Cinram and Plastichead among others all going strong, the UK distribution infrastructure remains in the pink; just as well given the recent BPI/Official Chart Company figures revealing that CDs and vinyl account for 48.8% of all music consumed in the UK”.
