Record labels are obsolete. They haven’t kept up as music evolved from selling CDs to streaming songs to promoting concert tickets and merchandise. Labels were meant to help artists generate albums, fame, and money. But now anyone can record themselves and no one “buys” music. So today that requires being a technology company, combining analytics with hyper-targeted advertising. And the old labels don’t have the engineering talent for it.
That’s why last year, the former president of Interscope Records Steve Stoute secretly raised a $70 million Series A led by Google’s corporate umbrella Alphabet and joined by prestigious venture firm Andreessen Horowitz, Silicon Valley investors Floodgate, and entertainment giant 20th Century Fox.