Tag Archives: Music Streaming

Human raises $5 million in seed funding round

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Human, a Seattle-based audio startup has raised $5 million in seed funding from a consortium of investors, including Fred Warren of Brentwood Associates and Kurt Beecher Dammeier of Sugar Mountain Capital. The company has been vague about the nature of their business and simply describes it as a product that seek to bridge the gap between people and technology. According to Human, the capital will be used for the expansion of its 40 person team, which includes former employees of Microsoft, Google and SpaceX. The secretive startup won’t disclose any additional information. According to sources, the company will launch its technology this summer.

You can read about the funding here.

Kickstarter acquires and saves Drip from shutting down

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Kickstarter, the crowdfunding platform for creative projects, has acquired independent music streaming startup Drip and rescued it from shutting down one day before its scheduled closure. Drip was created as a way for musicians to build their community of fans. It was founded in 2012 by Ghostly International founder, Sam Valenti IV and partner Miguel Senquiz. Drip enables fans to directly support and connect with their favourite musician/creator. Members pay a fee, which goes directly to the artist. In return, the member gets exclusive access to the artist’s music, videos, writing and art. According to Kickstarter, the acquisition is just the beginning as the company vows to continue to serve creators, their communities and support creativity.

You can read about the acquisition here.

Apple Music vs. Spotify

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Spotify, the current leader in music streaming services, is now under threat. Apple Music will be available later this month and even though the two services look evenly matched in terms of pricing and music library size, Apple clearly has the clout and spending power that will enable it to out-spend and outbid any competitor. For starters, Apple already has a few tricks up its sleeve: Apple will automatically install Apple Music when iPhone users upgrade to the new iOS 8.4 this month. Apple Music has its own global radio station called Beats 1 that will offer the hottest music, plus exclusive interviews and discussions about the latest trends in the music industry; and it has Connect, a social network feature that allows artists to share photos, videos and demo tracks with their fans. Spotify, on the other hand, has been busy building its defences and has raised a massive $526 million funding round that brings its valuation to $8.4 billion. With funds to protect its turf, the question on everyone’s mind is, will Spotify be able to retain its 20 million paid subscribers as well as its more than 50 million free subscribers? We will soon find out when Apple rolls out Apple Music at the end of the month.

The Money in Music

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The Money in Music

One of companies at the forefront of digital music is Spotify, a fast growing commercial music streaming service from Sweden that has become quite popular in Europe and the US. Last week, Spotify received $250 million in funding from Silicon Valley’s Technology Crossover Ventures to accelerate its growth globally. The funding has pushed Spotify’s valuation to nearly $4 billion. According to sources, Spotify is aiming to introduce its service into new territories, including Japan. The long-term challenge for Spotify is to create a profitable model after paying out royalties. With massive loses in the past years, critics have accused the company of focusing on a drive towards an IPO or trade sale in lieu of creating a long-term sustainable model.