In a recent episode of Music Business Worldwide’s weekly podcast, the Talking Trends, hosts Louise Porter and Tim Ingham (MBW founder), discussed the DIY distribution and tools sector, which is also known as the music industry’s “Quiet Giant.”
They examined DistroKid, one of the major DIY companies that’s reportedly worth $1.3 billion. Another leading player in this industry that’s been causing a lot of buzz is UnitedMasters. Especially after the New York-based company secured a $50 million Series B funding round that saw its value skyrocket to $550 million.
A Midia Research shows that self-releasing artists constituted over 5% of the total global recorded music industry and generated $1.2 billion in royalties last year by using these and other similar platforms.
In this episode of the Talking Trend podcast, Ingham also suggested that Steve Stoute, the founder of UnitedMasters, could now be considering an IPO on the stock market or selling some or all of the company.
“The story for UnitedMasters is an easy and straightforward one,” Ingham said. We are a key player in the DIY sphere, and our sector is growing faster than the major record labels.”
“the other part of it is that the DIY industry is actually an active threat to Warner and Universal. So, if you wanted to sell the sort of alternate investment argument, bring your money over here, rather than putting it into Universal or Warner, now that would be the good line.” He continued.
Ingham and Porter also discussed the latest quarterly result of Universal Music Group. The latter nalyzed a Q3 earning call presentation given by UMG’s Chairman and CEO, Sir Lucian. In addition to anticipating large profits for investors, Ingham proposed that we commit to long-term investments in artists — the age-old business quandary of what to preserve and spend.
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“People look at snounds and think that United Masters are our comp.. and they are not. I am happy for Steve and hope others realized what major contributions to music this man has made” – Jermaine Vanryck Ceo and Founder of Snounds.