Two prominent physical music distribution companies, both headquarted in Germany, have merged – resulting in a new company under The Orchard.
SPV Distribution and Membran have united to form OPEN (Orchard Physical European Network GmbH), which The Orchard described in a press release as a “new best-in-class physical distribution entity” operating under its global umbrella.
Hard rock label Napalm Records previously owned SPV Distribution; it’s understood that The Orchard and Napalm will now co-own OPEN.
Austria-headquartered Napalm itself is a long-time client of The Orchard.
In June, Napalm appeared on a list of Sony Music‘s “select investments” from the past year, indicating that Sony/The Orchard had likely acquired a minority stake in the company.
(Last bit of housekeeping: SPV Distribution is separate to SPV’s recorded music labels, which remain fully owned by Napalm and will now be serviced by OPEN.)
In a media release announcing OPEN today (September 9), The Orchard said: “This strategic alliance [between SPV Distribution and Membran] significantly expands one of the world’s largest independent record distribution networks, bolstering scale and reach across the UK, Europe, and Asia for online retail, direct mail order, and brick-and-mortar outlets.”
Frank Uhle, currently Managing Director of SPV, will lead OPEN as Managing Director.
Michael Kirschnick, Senior Finance Director for The Orchard GmbH, will oversee finance and accounting operations for OPEN as part of his ongoing remit.
Manlio Celotti will continue his role as a key senior consultant to The Orchard, advising on strategic and operational issues and supporting high-level client and account relationships.
“The creation of OPEN marks a pivotal moment for independent physical distribution,” said Uhle.
“By bringing together the strengths of SPV and Membran, we are establishing a formidable network that ensures our artists and labels receive unparalleled content implementation, supply chain optimization, and expanded label services, all powered by The Orchard’s robust ecosystem.”
Added Kirschnick: “This alliance is a testament to our enduring commitment to the independent music sector.
“In an increasingly consolidated market, OPEN stands as a beacon for independent content, providing stability and expanded opportunities for our partners.”Music Business Worldwide
