Recently, Apple has begun to provide active material assistance to various projects. Either it invests in Kia, then it will support the construction of a chip development center in Germany or the development of glasses for Corning mobile devices. And now it was the turn of the investment to support young independent musicians.
American corporation Apple spearheaded another round of funding for a music broker. We are talking about the distributor United Masters. The company managed to attract investors who are ready to invest, not much, not a little, as much as $50 million. This was stated by The Wall Street Journal.
The head of United Masters, businessman Steve Stout, created his brainchild back in 2017. The main purpose of creation was the desire to help novice and famous musicians sell their musical works. At the same time, all copyrights remained with the authors. Immediately after its creation, the company managed to attract the attention of various investors, among which was the Alphabet corporation. She gave United Masters $70 million, so to speak, a donation that helped the company rise. Thanks to such generous donations, United Masters has been able to release a huge amount of music, making over a million performers happy.
The total value of the music distributor's company under Type B funding is estimated at $350 million. She also has plans to take advantage of the fundraising to pay for international expansion, new technological developments and staff expansion.
At the same time, Apple owns the world's second largest streaming service with a huge user base. It's about Apple Music. Thus, we can conclude that by investing in United Masters, Apple is showing itself to be a corporation that also focuses on musicians.
Eddie Cue, senior vice president of software at Apple, said the corporation wants all musicians to focus on making the best music in the world. He also added that, at the very beginning of a career, it is quite difficult to keep track of all aspects at once, which include marketing, financing and sales.
The Wall Street Journal noted that the fastest growing part of the music industry is just the same independent musicians and the emergence of new authors. So, already in 2020, the profits of individual independent labels and their performers rose by as much as 28%. At the same time, their share in the streaming market increased by 32%. All data taken from Midia Research.
The music market with artists releasing their product without the help of labels, in the same 2020, grew by 34% and for the first time reached more than $1 billion.
In those years when discs existed and were sold, as well as files were actively downloaded, joining labels was the musician's only opportunity to distribute and make his work popular and accessible.
Now we have such popular services as Spotify and Apple Music, with the help of which musicians can download music whenever they want and not be limited by the rigid framework that is specified in the contracts with the labels.
However, streaming platforms are still the best option for big brands. At the same time, any musician can upload his work to these sites, but it will be difficult to stand out due to the large number of users and their content. So, Spotify said that more than 65 thousand songs are uploaded to the site every day.