Why so many music tech deals fail: SPIN explores how to survive the music licensing maze.
In 2009, I set out to launch a music-based mobile application.
This was the first time an app had real artists’ masters that you could use for karaoke. It had social features and gaming. You could actually sell catalogs from other labels out of the app. The purpose of this is not to reminisce but rather to provide context for an experience that ultimately served as a crash course in music licensing.
However, when it came to traction, there was an interesting, even paradoxical, dynamic at play. If an app was infringing copyrights but had managed to attract millions of users, the industry often turned a blind eye, at least temporarily. , founded in 2001. What did Steve Jobs do differently? He transformed the music business by working closely with the labels. Apple also had a market cap of $6 billion in 2001. It was also thought that if iTunes as a music download company just broke even, the iPod would make up the margin. An iPod cost $400 in 2001., founded in 2006. In the beginning, Spotify struck ownership deals with the major record labels.
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