30 Jan 2019
News

SEVEN STARTUPS SPOTIFY SHOULD (TRY TO) BUY TO BETTER SERVE ARTISTS

Thanks to the team at MBW for featuring Instrumental in this article:

https://www.musicbusinessworldwide.com/seven-startups-spotify-should-try-to-buy-to-better-serve-artists/

Here is what they said:

"If Spotify wants to rival the major labels by striking direct deals with the hottest new artists, then it’s going to need to sharpen up its talent discovery efforts. Others have certainly splashed the cash to do so.

In March last year Warner Music Group acquired Toronto-born A&R scouting tech startup Sodatone. And in October, Apple, acquired A&R analytics platform Asaii.

Spotify does have something of a native talent scouting process in place already, as it allows artists, labels or managers to directly submit unreleased tracks for consideration on its playlists by the service’s 100-strong team of global editors.

Yet based on what Spotify is up against, it’s pretty clear that it needs to do better – and reach beyond its own digital ecosystem to find talent. Instrumental could be the missing piece in this puzzle.

Why would Spotify want to buy it?

Instrumental’s prize A&R product is called TalentAI. It monitors billions of lines of data each day from sources such as Spotify, but also from the likes of Instagram and YouTube, to make real-time talent recommendations. It then feeds this information to talent spotters at the likes of labels, publishers, promoters and marketers.

This would enable Spotify to better monitor early-stage talent on its own platform, but also to keep tabs on artists bubbling under on rival platforms – helping Spotify ensure that acts don’t become known for ‘breaking’ on a competitor’s service first.

What’s more, Instrumental can now layer on additional artist service expertise. The company’s recently launched artist services division, frtyfve – which partners with Kobalt’s AWAL for digital sales, marketing and distribution services – scored the fiercely contested UK chart Christmas No.1 position in December 2018 with YouTube star LadBaby.

Using Instrumental’s team and technology, while retaining the intelligence it gathers for its own use, could give Spotify a substantial upper hand on its rivals."