On Monday, Kobalt, a music services and technology company, received $75 million dollars in funding. Hearts Entertainment and existing investors Balderton Capital and MSD Capital have invested $75 million in Kobalt after it achieved a $700 million valuation.
Kobalt intends to be a company that stands out from the traditional record label models while still fulfilling artists needs and putting the artists first. The mission as displayed on its site reads "Making the music industry more fair and rewarding for creators. [He] wanted to give artists, songwriters, musicians, labels and publishers the freedom and transparency they needed to build their careers.
CEO Williard Ahdritz said in a statement to Billboard, "With the high growth of streaming and the billions of micro transactions that take place per song, the music industry is more complex than ever. Guided by core principles of transparency, technology and putting creators first, I have never been more sure that our platform, combined with our global creative team, is the right one to serve creators and rights owners in the rapidly evolving digital music environment."
Kobalt data shows that a typical hit song currently has 4 billion micro-transactions and typically hit songs are expected to grow to 10 billion micro transactions within 18 months. With that said the company wants to insure its systems can handle the exponential growth in volume and that is where the $75 million in new funding comes into play.
Streaming data is changing the game.
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