Create Music Group took a minority stake in DistroKid earlier this year. Create is based in LA and backed by Flexpoint Ford and Ares. CVC Capital Partners already holds the majority stake, which closed in Q3. Create CEO and co-founder Jonathan Strauss confirmed that investment to Music Business Worldwide on October 28. In a statement to MBW, he said: “Create is home to some of the world’s largest and most storied independent record labels and artists, and DistroKid is where countless artists begin their careers. We’re excited to partner with CVC as a minority investor in the company and to support its continued growth.”
That's a big deal for a small reason. DistroKid moves a huge share of the new music that comes out every day. When fewer companies own the pipes, they get more say over what gets through.
DistroKid is also still being sued by UMG over AI music. So the biggest pipe for new releases is now owned by investors and fighting a major label in court, all at the same time.
What does that mean for you? Probably nothing today. Your songs still go out. But the rules can change when the owners change, and AI music is where those rules are moving fastest.
Here's where we stand.
You tell the truth on upload. Human, AI-assisted or fully AI, you say which one, and we label it honestly.
We take 0% of your royalties.
We still deliver fully AI music. We don't hide it and we don't punish it. We just label it.
No one can promise you what a song will earn, and we won't either. What we can promise is that you'll know what goes out under your name and how it's labeled.
The pipes are consolidating. Know who owns yours.
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Source: Music Business Worldwide, Oct 28, 2026. Billboard published the same statement from Strauss the same day: Billboard, Oct 28, 2026.