Music startups have raised $350m+ to help aspiring artists go viral

From The Hustle

In the annals of internet-enabled stardom, Justin Bieber’s journey from a 12-year-old YouTube musician to global icon ranks up there.

The “next” Justin Bieber will most likely be found on TikTok, the viral short video platform.

The app -- which is dominated by 10-to-30-second videos -- has even influenced musicians to make shorter songs in an attempt to break through.

A number of music-related startups…

… have raised $350m+ to help independent, aspiring artists blow up on TikTok (and competing services like YouTube Shorts and Instagram Reels), per The Information.

These include:

• Rapchat: An online recording studio for rappers
• Splice: Music production tools and a library of royalty-free beats
• Music Breakr: A marketplace connecting artists with social media influencers (that can help a song go viral)
• UnitedMasters: A platform that helps artists distribute songs to streaming platforms like Spotify and Apple Music

Going viral on TikTok is no joke

A number of songs have topped streaming charts after breaking out on TikTok:

• Lil Nas X’s “Old Town Road”
• Olivia Rodrigo’s “Drivers License”
• 24kGoldn’s “Mood”

And who can forget the viral cranberry-drinking skateboarder who sent a Fleetwood Mac album back onto the Billboard charts for the 1st time in 4 decades.

Music industry is almost back to its peak

Sales of recorded music -- with streaming accounting for 83% of the pie -- hit $12B in 2020, +9.2% YoY.

This is the 5th straight year of growth, putting the industry near its record revenue of $14.6B in 1999.

Whether or not this industry momentum actually produces the next Bieber, it’s safe to say “Despacito” will always be the best summer song ever.