STOCKHOLM (CelebrityAccess) – Swedish startup, Amuse, has raised $15.5 million in Series A funding to support its free music distribution service and “next generation” record label.
Founded in Stockholm in 2015 by a team of music industry experts including Diego Farias, Christian Wilsson, Jimmy Brodd, Andreas Ahlenius, and Guy Parry, the company aims to make it easy and cost-free for new and unsigned artists to distribute their music via major music services like Spotify, Apple Music, and Deezer. While most other services typically charge an annual fee or take a cut of any revenue generated, Amuse maintains that their model keeps royalties where they belong; in the artist’s pocket.
So how do they accomplish such as thing using a free business model? Amuse tracks how well an artist is performing via their various chosen streaming apps and download stores and uses the data to identify “rising talent.” The company then offers the most promising artists a licensing deal instead of a traditional recording contract. Under the terms of the deal (a 50/50 split of streaming and download revenue), the artist maintains 100% ownership of their material while Amuse provides access to its “large-scale” promotional network.
“The way music is produced and consumed has dramatically changed, but traditional labels have not,” said Diego Farias, co-founder and CEO, Amuse. “Amuse is redefining the label deal and democratizing the discovery process, providing a sustainable solution to this problem.”
The company has already signed licensing deals with more than 40 artists, and plans to use the funding to open an office in LA and further expand its operations and reach globally.