Apple leads $50m funding round in record label disruptor United Masters
Apple has led a $50m (£36m) investment in United Masters, an independent music platform aiming to challenge the dominance of major record labels.
United Masters, which was founded in 2017 by former label executive Steve Stoute, provides a platform for artists to distribute their music while retaining ownership of their master recording rights.
This is in contrast to traditional record deals, where artists sign away their rights to the label.
The company said its Series B funding round, which was also backed by Google parent Alphabet and venture capital giant Andreessen Horowitz, would support its expansion plans.
It also marks the launch of a strategic partnership with Apple, one of the major players in the music streaming market.
United Masters currently has 1m artists on its platform and has inked deals with the NBA, ESPN, Tiktok and Twitch.
The platform allows artists to release music directly to streaming services via Android or Apple. It takes a 10 per cent share of revenue, or artists can retain all revenue if they pay a $5 monthly subscription fee.
The investment comes as the rise of streaming platforms begins to threaten the dominance of the three major record labels Universal, Sony, and Warner.
While the labels previously controlled distribution of artists’ music, services such as Spotify and Apple Music have made it easier for independent artists to gain traction.
Moreover, the issue of music rights ownership has been thrown into the limelight after Taylor Swift was locked in a public battle over her copyright.
Earlier this year the singer said she was re-recording her songs in an effort to take control over her music.
Meanwhile in the UK MPs are currently carrying out an inquiry into how music royalties are split between streaming platforms, artists and labels.
“The power in the music industry has shifted back into the hands of the artist,” said Stoute, who began his career as manager to rapper Nas before taking executive roles at Sony and Interscope.
“We built UnitedMasters as a record company in your pocket to remove the barrier entries for any independent artist who wants to create and retain full equity in their work, connect directly with their fans, and earn far more money than the legacy model through new revenue streams such as advertising. Technology, no doubt, has transformed music for consumers. Now it’s time for technology to change the economics for the artists.”