UnitedMasters, a music distribution platform for independent artists, has closed on a $50 million Series B round led by Apple, with participation from Google’s parent company Alphabet and VC giant Andreessen Horowitz. The money will be used to grow the company’s teams in NYC and San Francisco, with the goal of hiring local tech and music talent to further build out its platform worldwide.
To put it simply, UnitedMasters is a “record label in your pocket,” says founder and CEO Steve Stoute.
“It allows artists to go right from their bedrooms, through their iPhone or Android device, and get their music distributed on music streaming platforms all over the world,” Stoute told CNBC in a recent interview. “During this entire process, they retain their rights. ... Typically, you sign to a record company in order to find an audience. An artist today actually finds an audience on their own, before they find a record company.”
UnitedMasters helps artists do this through its suite of tools that allow users to control everything from tours and streaming analytics to their social media presence. The company also offers premium music distribution services, facilitating partnerships between musicians and some of the world’s biggest brands through partnerships with companies like NBA, ESPN and Twitch.
Just last September, UnitedMasters also entered into a partnership with TikTok, becoming the first company of its kind to be fully integrated into the social media platform. In short, the partnership allows TikTok users to distribute their music directly to other music streaming sites through UnitedMasters and get promoted on the platform.
“If you are a musical artist, TikTok is the best place for your music to go viral and UnitedMasters is the best place to sustain it while retaining full ownership of your work,” Stoute said in a statement. “By combining the two, we create the platform for tomorrow’s stars who will be famous, fiercely independent and wealthy.”
Stoute was inspired to create something like UnitedMasters from his time working at record labels like Interscope Geffen A&M Records and Sony Music Entertainment in the ’90s and early 2000s. He left the industry in 2004 and founded Translation, an independent creative agency responsible for forging major partnerships between artists and corporate brands (i.e. Justin Timberlake and McDonald’s).
All of this was happening just as the internet was taking over the music industry, and the old business model that revolved around CD sales was growing obsolete. At first this presented a problem for independent artists, causing them to lose even more ownership over their music. However, Stoute realized there was an opportunity for artists to actually harness the data-driven world of music streaming and make more direct connections to their fans, which in turn could generate more profits and control.
So, he launched UnitedMasters out of stealth mode in 2017 after raising $70 million from Twentieth Century Fox, Alphabet and Andreessen Horowitz. Four years later, the company has a million musicians using its platform.
“UnitedMasters has completely transformed the way artists create, retain ownership of their work, and connect with their fans,” Ben Horowitz, co-founder and general partner of Andreessen Horowitz, said in a statement. “We are excited to work with Steve and team to build a better, bigger, and far more profitable world for musical artists.”
This latest funding round isn’t just big news for UnitedMasters, but Apple as well. The tech giant very rarely participates in venture capital rounds, preferring instead to just purchase smaller companies outright. However, Apple is also kicking off a strategic partnership with UnitedMasters alongside the investment. Details are slim, but the deal is meant to create new opportunities for the independent artists using the platform.
“Steve Stoute and UnitedMasters provide creators with more opportunities to advance their careers and bring their music to the world,” Apple executive Eddy Cue said in a statement. “The contributions of independent artists play a significant role in driving the continued growth and success of the music industry, and UnitedMasters, like Apple, is committed to empowering creators.”
