Google Leads $70 Million Funding to Challenge Major Music Labels – The gloves are off. Napster was the first shot fired that people heard. Now the tech industry has officially declared war. Google is leading a $70 million investment into United Masters to officially take on music labels. In 2015 Google lead a $60 million investment into Kobalt, which happened to be the first investment of any kind from Google Ventures. Both United Masters and Kobalt have forward-thinking business models that embrace modern distribution methods, while they leverage BIG DATA to increase exposure and revenue opportunities for their artists. The race is on and getting more competitive among the tech giants, as the article states, “Music Tech is Inevitable”.
Universal Music Worth More Than $40 Billion Says CEO – Vivendi’s Universal Music Group, the world’s largest music label could be worth more than $40 Billion, according to CEO Arnaud de Puyfontaine. Vivendi has floated the idea that UMG could be ripe for a stock market listing, boosting the group’s shares in recent months. UMG’s core operating profit jumped 25.5% driven by the explosive growth of streaming. The explosive growth of streaming is driving up music tech and music label valuations to new levels not witnessed before.
Apple to Spend $4.2 Billion on Original Content for Apple Music – Apple will ramp its original content spend to $4.2 billion by 2022 as part of an effort to expand a rebranded Apple Music. Apple has publicly stated its intention of leveraging Apple Music to compete with Amazon and Netflix, by utilizing music as a magnet that attracts users into their ecosystem, which will eventually expand beyond music into video and other offerings. Apple has a running start with over 30 million Apple Music subscribers and the competition to acquire content rights has become a Billion dollar business. In the same time period, Amazon will invest $8.3 Billion into content and Netflix will invest $6.8 Billion.
BROKEN RECORD: Spotify Acquires Soundtrap for $30 Million – Spotify has made another acquisition as it continues to build out the services it offers to artists beyond basic streaming. Soundtrap is a cloud-based, collaborative music recording software that was valued at $24 million in 2016. This acquisition comes on the heels of 4 BIG DATA acquisitions in 2017 as Spotify gears up for its upcoming IPO in 2018.
Today’s Awesome Quote! “The music technology scene is changing so fast it’s hard to keep up.” – Natasha Bedingfield