DUETTI CLOSES $90M IN NEW FUNDING
February 15th, 2024
For press inquiries please email press@duetti.co
DUETTI CLOSES $90M IN NEW FUNDING TO EXPAND ACQUISITION AND MONETIZATION OF INDEPENDENT ARTISTS' MUSIC CATALOGS.
The data-centered music financing platform has raised over $120M in 18 months as demand grows for new financing solutions among independent artists
NEW YORK, Feb. 15, 2024 /PRNewswire/ -- Duetti, a music financing platform democratizing the music business by enabling catalog monetization for independent artists, today announced $90M in new funding. This includes $15M of new equity, alongside a new $75M credit facility. The equity financing is led by Nyca Partners, alongside Viola Ventures, Duetti's lead seed equity investor, and Cohen Circle. The $75M credit facility is provided by Northleaf Capital Partners. The latest funding underscores Duetti's ability to acquire catalog tracks at scale, and highlights the increasingly positive long-term financial outlook of the independent music market.
"The music industry has evolved and independent artists are bucking tradition and approaching their careers in new, savvy ways," says Duetti CEO and Co-Founder Lior Tibon. "At Duetti, we are dedicated to making the industry more transparent and unlocking new opportunities for independent artists who are normally overlooked by the investment community and the more traditional label system."
Duetti's model unlocks immediate cash flow for a wide range of artists, allowing them to sell master catalogs, individual tracks, or parts thereof, an opportunity previously only accessible to a small group of A-list artists. The new funding will support accelerated growth of Duetti's catalog acquisitions, development of proprietary advanced prediction and analytics technology, and expansion of unique catalog marketing capabilities. Duetti recently opened offices in New York, Los Angeles, and Miami to support the growing team.
"We are excited to partner with the Duetti team on their creative efforts to provide liquidity to independent artists", says Jeremy Solomon, Partner at Nyca. "The company's data-forward approach combined with its partner-centric model puts Duetti in a position to become a critical and scaled player in the music investment space."
"Northleaf is delighted to partner with Duetti to support the company's continued growth, leveraging our combined expertise to drive industry-transforming opportunities for artists and investors alike," added CJ Wei, Director at Northleaf. "Their innovative systems and operational processes are impressive and we believe they are well-positioned for ongoing success."
Duetti has quickly emerged as an essential business partner and trusted ally for over 250 artists across all genres and career stages - including Olivia O'Brien, Sevyn Streeter and Łaszewo. Offering a wide range of financial options, Duetti's deals typically start at $10,000, reaching up to $2M per transaction. The independent artist segment has grown exponentially in recent years. According to Luminate, 436,000 total tracks were streamed 1M times or more globally in 2023, a 17% increase versus the prior year.
"I could not ask for much more from Duetti - they bought a number of my tracks and will increase my streaming performance while providing me with upfront cash to help me focus on my next projects," said Brent Morgan, Singer, Songwriter, and Duetti Artist Partner. "Working with Duetti was transparent, fair, and a much needed breath of fresh air in this industry."
Artists with tracks that have been on streaming platforms for at least 2 years, and have garnered at least 500,000 streams in the last 12 months can learn more about master sale opportunities on Duetti.co.
About Duetti
Duetti was founded by Lior Tibon, former COO of TIDAL, and Christopher Nolte, former Business Development executive at Apple Music, with the mission of getting a wide range of artists quick and easy access to catalog sales and unlocking new investment opportunities. Leveraging their experience in streaming and support from music and tech's most innovative investors including Nyca Partners, Viola Ventures and Roc Nation, Duetti's music financing platform has helped over 250 artists receive up to $2M per transaction. The unique model provides data-driven prices for established tracks, allowing artists to sell individual tracks or even parts thereof, while Duetti then markets those tracks going forward using unique ROI-focused techniques.
Music Economics Report 2023
December 12th, 2023
Download the full report below. For press inquiries please email press@duetti.co
Duetti's Inaugural 2023 Music Economics Report Finds Spotify’s Dominant Market Position Brings Down Industry-Wide Streaming Rates For Independent Artists
A vital tool for independent artists, the report further uncovers major disparities in royalty payouts by genre, YouTube’s growing impact, and more
- Spotify is paying independent artists 8% less in 2023 vs last year on a per stream basis - unlike Apple, YouTube, and Amazon, who all increased their payout rates
- Independent Latin artists make nearly 70% less per stream than Country artists
- Independent artists need 5,000,000 streams annually in order to make the US federal minimum wage
NEW YORK, December 12, 2023 – Duetti, a music financing startup, has announced the release of its inaugural 2023 Music Economics Report for Independent Artists. The quantitative analysis draws from millions of data points pulled from proprietary data sets in conjunction with publicly available resources to analyze the complex streaming landscape.
The report offers invaluable perspectives for artists and their teams, uncovering the impact of DSP price increases on per stream rates, measuring platform performance across various geographic regions and genres, and identifying areas where artists may experience revenue loss.
Key takeaways from the inaugural report include:
1. Earnings per stream are down by 2% in 2023 despite price increases by the streaming platforms - independent artists make $2.95 per 1,000 streams
- The decline is driven by Spotify (whereby per stream rates are down by 8% in 2023), due to expansion in lower-cost markets, reliance on discounted plans (e.g., Family or Duo plans), and proliferation of Discovery Mode
- Spotify’s payout rate decline outweighs the positive contribution of the industry’s subscription price increases in 2022 and 2023, which lead to increased payout rates by Apple, YouTube and Amazon.
- Independent artists need to generate 5,000,000 streams annually in order to make the US federal minimum wage
2. For US & UK artists, YouTube is more important than ever
- YouTube and Apple music have grown their wallet share for independent artists at the expense of Spotify - but Spotify remains the most important platform in terms of wallet share (by far) with 55%
- The top 4 platforms (Spotify, Apple, YouTube, Amazon) generate 96% of income for independent artists
- 1,000 TikTok video creations generate just 50 cents for independent artists, almost 13 times less than 1,000 streams on Apple Music
3. Streaming income varies greatly by genre
- While independent Country artists make $3.5 per 1,000 streams, independent Latin artists make only $1.1 (nearly 70% less)
- Variation in streaming rates is driven by different platform and country mix of audiences across genres
- Spotify’s genre-based wallet share varies: from as low as 38% for Country artists to as high as 66% for Rock.
- Apple particularly over-indexes in Jazz, Country, R&B, Hip-Hop, and Christian, while YouTube over-indexes in Latin, Hip-Hop, and R&B
4. 5 markets generate 80% of income for US artists
- Alongside the US (59% wallet share), the other major 4 countries for US artists are the UK (9%), Germany (5%), Canada (4%) and Australia (4%)
- Platform wallet-share varies by country for independent artists, with Spotify much stronger in the UK versus the US, for example (on a relative basis)
5. The average independent artist spends 26% of income on distribution fees (unless they choose to go fully DIY)
- This year, Latin and Country artists paid the highest distribution fees
- Fees surpass 20% across all genres, indicating industry-wide reliance on advances and other services, which usually require a distribution fee above 15%
“One of the biggest challenges we see facing indie artists is the inability to make informed financial decisions due to incomplete data and unclear statements stemming from an industry with a longstanding history of opaque and overly complex finances,” says Lior Tibon, CEO and co-founder of Duetti. “This report arms independent artists with the right data to have more informed conversations regarding streaming economics, better navigate their finances, and maximize their success in a streaming-first industry.”
Since its inception, Duetti has become an essential business tool for hundreds of independent artists, leveling the playing field by opening up catalog sales to a wider group of artists and adding millions of dollars to the mix to fuel their creative endeavors. Duetti isn't just an investor; it's a guide for savvy decisions in the ever-changing financial currents of the music industry. To date, Duetti's facilitation of music rights acquisitions has seen artists receive upwards of seven figures per deal.
The Duetti Inaugural End-of-Year Music Economics Report for Independent Artists is now available at duetti.co/press
About Duetti
Duetti was founded by Lior Tibon, former COO of TIDAL, and Christopher Nolte, former Business Development executive at Apple Music, with the mission of getting a wide range of artists quick and easy access to catalog sales and unlocking new investment opportunities. Leveraging their experience in streaming and support from music and tech’s most innovative investors including Viola Ventures and Roc Nation, Duetti’s music financing platform has helped hundreds of artists receive upwards of seven figures for their catalog and single-track masters. The unique model provides data-driven prices for established tracks, allowing artists to sell individual tracks or even parts thereof, while Duetti then markets those tracks going forward using unique ROI-focused techniques.