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Supported from above With $ 200 million in funding, Kobalt is changing the way the music industry does business and putting more money in the pockets of musicians.
In Part I of this series, I went through the company's founding history and general structure. Kobalt is betting on two fundamental theses: 1) that the shift to digital music could transform the way royalties are perceived and paid for, and 2) that music streaming will enable a growing middle class of successful DIY musicians in countless niches.
This article looks at the complexity of royalty flows in the industry and how Kobalt restructure this process (while the third part will focus on the middle class of music). The music industry relies on the administration of copyright and the collection of royalties. If the system goes down – if people do not know where the songs are read and who is owed the amount of royalties – everything stops.
Kobalt is both a compliance technology company and a music company: it has built a near-operating system to handle this more accurately and quickly, thanks to software and a centralized approach to collections, thus improving a faulty and inefficient system so that everything can work. more smoothly and predictably on the top. The big question is whether she can maintain her lead in this area.
The case of a song
Image via Getty Images / Mykyta Dolmatov
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