Music Industry scene is crazy. There are thousands of artists putting out millions of songs. They have to earn royalties from them but in most cases, the reality is that if they are lucky enough to collect them they do it late, even years after.
Kobalt brings those artists a solution. A good one. Imagine how good it is that Google and Michael Dell, founder of Dell computers, have invested $60m in the leading independent music publisher company.
Kobalt represents artists that boast on average more than 40 percent of the top 100 songs and albums in the UK and US charts including Beck, Foo Fighters, Kelly Clarkson, Paul McCartney, Thom Yorke, Trent Reznor and Pitbull, among others.
The way it works it’s simple. Artists pay Kobalt a flat rate to collect royalties and report, via computer and smartphone, where their music is selling and how much they’re owed, leaving artists and songwriters with full ownership of their works.
Kobalt also offers “label services,” where independent artists pay the company to help them make and distribute recordings as an alternative to signing more-constraining and long-term contracts with the major music labels. Label services are becoming more and more popular.
The company, founded by Willard Ahdritz in 2000, has a 40 percent year-on-year growth over the last decade and 98.5 percent artist retention rate.
The new cash comes on top of the $66-million already raised by the company. The money will be used to scale up computer systems and finance a big global push, with an early emphasis on Mexico, Argentina, Brazil and Southeast Asia, according to Kobalt‘s CEO Willard Ahdritz.