STOCKHOLM (Reuters) – Epidemic Sound, backed by Spotify investor, this is one of a new generation of music companies, are expanding rapidly on the back of the demand for easy access to all of the original music of the commercial user, with a particular youtube user.
FILE PHOTO: A woman listens to music as the sun as seen between buildings on Boa Viagem beach in Recife June 30, 2014. REUTERS/Brian Snyder
The global market for digital content, a fast-growing part of the entertainment industry, and is the fastest-growing component of the Epidemic to the business, which is estimated at close to $11 billion, and is expected to grow by about 17% per year between now and 2025, according to market research firm As Research.
Sweden, the Epidemic has managed to double the turnover of the previous year to 234 million Swedish crowns ($24 million), as the muscles in the same market, as well as the traditional record labels, including Universal, who will be the holder of the copyright, and royalty costs, while also having to compete with tech giants such as Apple, which recently launched a music-for-business.
The disease has a royalty-free business model, to the advantage of the up-front payments for any song purchased from the music. It splits up all of the music streaming revenue out of a job, 50/50 with the creators and will retain the exclusive rights to the songs in the library.
The main competitors in the production music company Audio Network, which is owned by Canada’s Entertainment one, whose subscribers get access to more than 150,000 full ownership of tracks for video, TV and radio production, and Music, and that licenses music to video makers.
THE GROWING EPIDEMIC OF
The epidemic has appointed former Google and Spotify’s director, Kate Vale, head of its North American expansion, and the opening of an office in South Korea, and has his eye on the Spanish-language music scene in South America, and is the CEO and co-founder of Oscar Hoglund said.
“We’ll see, this is a huge macro-station, when it’s the internet, it’s all in the video, and that is the underlying force for the management of our company as a whole,” Hoglund said, ” as the company’s new, second office, to be part of the active tech scene in the heart of Stockholm, sweden.
The “gig-economy and e-commerce as well as a lot of. Anyone can be an entrepreneur right now. They need to have access to the music,” Hoglund said, adding that the competition from e-commerce in the creation of music is becoming more and more important for retail stores and restaurants are trying to distinguish.
Even though loss-making, Epidemic Sound, and was valued at about $370 million in fundraising in July, according to a source. It is how to add by tens of thousands of new customers and working with hundreds of tracks each month.
Below are the top-sellers, Sarah, and the Illstrumentalist hip-hop music, which features U. S actor will Smith’s YouTube channel, while John Bornlof’s “Reminiscene” is one of the most popular classical pieces of music.
Hoglund said he was expected to keep doubling the size of its sales and the profitability was to be expected. “We have a strong focus on the bottom line, however, we invest a great deal in the growth of our business, and now, therefore, in the context of the business, we are intentionally not profitable,” he said.
The investment company EQT owns a 40% stake in the company, while employees and founders have 40% of Spotify-backer Creandum has to be 20%. It made a loss of 67 million kroner in the previous year.
“We believe that the Epidemic will continue to be positioned as one of Europe’s fastest-growing tech companies-and are excited to be a part of this journey,” EQT partner, Victor Englesson said.
Reporting by Helena Soderpalm; Editing by Elaine Hardcastle