View Single Post
Old 27th June 2019
Originally Posted by VitaEtMusica View Post
Reviving this thread because I just read this puff piece. Songtradr Article

Two things that jump out are, first that they are quoting revenue growth from 2017 in a 2019 article (and not amazing growth at that). And second that they are claiming distribution of $333m to their artists and record company partners... in 2017. I must be missing a key piece of their revenue, like maybe distribution on streaming services makes them a lot of money. But all they talk about in the article is sync. Now to put that in perspective, if it were only sync revenue distributed to artists to the tune of 333m, and that doesn't include Songtradr's cut of the sync? That would be sync revenue in the neighborhood of at least 5x a UPM. Songtradr isn't exactly a production music company, but still... That would also mean that Songtradr is distributing about 30% as much money as PRO's like ASCAP and BMI who rep millions of songs and plays.

If it's so, good for Songtradr. That's amazing. But there's no talk of revenue based on selling the dream/pay to play, which I suspect is a big part of any money they're making at this point. Pay them $50 a year for premium sync opportunities. But they are really just a Distrokid or Tunecore, aren't they?

As my good friends Bill and Ted have been heard to say, "Strange things are afoot at the Cirlce K."
I think it's easy to misread the details... so it's misleading...

you have to keep in mind...

In addition, Songtradr offers artists distribution to a wealth of digital platforms – while allowing these acts to keep 100% of their streaming royalties.
and then keep that context in mind when you read this...

...delivering $333.1m to artists and their record companies that year.
So none of that $333.1mil is Songtradr... 100% of it is just a straight pass through. $333mil from streaming of 450,000 unique titles is not out of the realm of possibility. That's roughly $900k per day on average. Universal Music Group makes $6mil per day on average from Spotify. So $900k for a catalog that is exponentially larger isn't that far of a stretch.

And while the article mentions Songtradr had 9% growth in 2017 as stated by IFPI... it never mentions what Songtradr's actual revenue is. Keep that in mind when it mentions...

The company continues to go from strength to strength, raising $4m in a Series A funding round in 2018 and $12m in a Series B funding round earlier this year,
Why would it need to raise $16mil in investment capital if the company itself was making $300+mil per year?

Basically Songtradr is looking at itself as a type of Pond5 or Splice or maybe even a tiny Amazon, an online marketplace but for licensing products instead of buyout products. It charges a fee to the manufacturers/product makers to have access. But it doesn't take a cut of each transaction, at least not yet, that I can see... but you can be sure with $333mil passing through their hands they are going to be coming up with ways to take a cut at some point. And that is probably how they are attracting this investment cash... "hey, we are an online B2B that facilities cash transactions over $300mil a year... we need investment infrastructure to create the ability to charge a percentage of these transactions as we continue to grow..."