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Why UnitedMasters's Business Model is so successful?

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UnitedMasters’s Company Overview


UnitedMasters is a cutting-edge music distribution company and record label alternative that offers artists the ability to distribute their music across major streaming platforms while retaining full rights to their work. Founded in 2017 by former Interscope Records president Steve Stoute, the company is headquartered in New York City. UnitedMasters aims to empower artists globally by providing them with the tools and resources they need to thrive and maintain control over their careers. With a strong focus on data and analytics, UnitedMasters ensures artists have a clear understanding of their audience and can effectively engage with fans.

UnitedMasters' business model is centered around providing independent artists with a platform to distribute their music, while also offering them access to a suite of marketing tools, analytics, and opportunities for brand partnerships. The company operates on a freemium model, with its basic service being free for artists to use. However, for a subscription fee, artists can access UnitedMasters Select, a premium tier that offers higher royalty rates, faster payments, and advanced features.

The revenue model of UnitedMasters is primarily based on these subscription fees from the premium tier, UnitedMasters Select. This subscription-based model provides a steady stream of income for the company. Additionally, UnitedMasters also generates revenue through brand partnerships. The company has relationships with a number of high-profile brands, and connects these brands with artists on their platform for various marketing campaigns and initiatives. These partnerships provide another significant source of revenue for UnitedMasters.

https://unitedmasters.com/

Headquater: San Francisco, California, US

Foundations date: 2017

Company Type: Private

Sector: Information & Media

Category: Entertainment

Digital Maturity: Digirati


UnitedMasters’s Related Competitors



UnitedMasters’s Business Model Canvas


UnitedMasters’s Key Partners
  • Artists
  • Brands
  • Modern musicians
  • Channel partners
  • Apple Music
  • NBA
  • BET
  • NBA 2K
  • Lyrical Lemonade
  • Empire
  • Virgin EMI
UnitedMasters’s Key Activities
  • Product features
  • Personalized recommendations
  • Marketing agreements
  • Content management and distribution
  • Online Direct Marketing
  • Platform Development
  • IT operations
  • Legal
  • Public relations
  • Presence
  • Revenues and Royalties
UnitedMasters’s Key Resources
  • Exclusive access to body of more than 500.000 artists
  • Intellectual property
  • Business and technology team
  • A service to distribution artists content to music streaming platforms
  • Data from individual songs to overall fan response
  • A record label
  • A publishing company
  • An agency and an analytics suite
  • Series A funding
UnitedMasters’s Value Propositions
  • Featuring your music on premium music services like Apple Music & Spotify - Without the need for a label
  • Monetizing your music across YouTube and SoundCloud
  • Keeping 100% of the royalties from your music across every platform
  • Connecting directly with your fans through Instagram and Twitter
  • Accessing your streaming data and performance metrics in real-time
  • Opening up opportunities for brand sponsorships
  • Building a team around your career to help take things to the next level
  • A new kind of artist services company that represents and supports all artists equally
UnitedMasters’s Customer Relationships
  • Fanbase
  • Reach an audience of fans that you share a common interest with
  • Submit your music to be featured on the platform and be discovered by thousands of curators
  • Offer digital distribution services to independent artists that lets them distribute their music to streaming platforms like Spotify
  • Apple Music and Tidal as well as digital stores like iTunes and Google Play
  • 100% of the royalties
  • Digital payment
  • Data Analytics
  • Social media
  • Digital
  • Account-based marketing
UnitedMasters’s Customer Segments
  • Unsigned musicians
  • Unsigned music from a wide range of genres
UnitedMasters’s Channels
  • Website
  • Social networks
  • Music services
  • Music stores
  • Influencers
  • Music news and blogs
UnitedMasters’s Cost Structure
  • Platform development
  • Maintenance and operations
  • Company's operation
  • Domain
  • Staff compensation
  • Acquisition
  • Community support
  • Legal
  • IT infrastructure
  • Revenues shares
UnitedMasters’s Revenue Streams
  • The company says that 100% of the rights belong to the artists and it is free of charge
  • The company will take a 10% commission and artists will get 60% of their royalties with payments being made on a quarterly basis
  • Subscription $59.99 PER YEAR

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UnitedMasters’s Revenue Model


UnitedMasters makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Music
  • Freemium
  • Trialware
  • Subscription
  • Tiered service
  • Transaction facilitator
  • Two-sided market
  • Revenue sharing
  • Community-funded
  • eCommerce
  • Online marketplace
  • Customer data
  • Crowdsourcing
  • Codifying a distinctive service capability
  • Culture is brand
  • Peer to Peer (P2P)
  • Affiliation
  • Sponsorship
  • Reputation builders
  • Network builders
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

UnitedMasters’s Case Study


UnitedMasters's CASE STUDY

Our journey into understanding UnitedMasters begins with the bold vision of Steve Stoute, a former Interscope Records president. Founded in 2017 in New York City, UnitedMasters has swiftly redefined the traditional metrics and dynamics of the music industry. At its core, this company manages to empower artists by offering them unrivaled control over their music and careers. What we find truly compelling about UnitedMasters is its unique blend of data-driven insights and innovative business strategies that create a sustainable ecosystem for artists and brands alike.

Redefining Music Distribution

UnitedMasters operates on a business model that bridges the gap between independent artists and mainstream success. Unlike traditional record labels, which often take a significant cut from artists' revenue, UnitedMasters allows artists to retain 100% ownership of their music. This ability to hold onto one's rights isn't just a lofty promise—it’s a reality executed deftly through its freemium model. Artists can use the basic version of the platform for free or opt for the premium tier, UnitedMasters Select, for $59.99 per year. This tier offers elevated features such as higher royalty rates and faster payments.

The Data-Driven Advantage

One of the standout attributes of UnitedMasters is its strong focus on data and analytics. According to a report from Forrester (2022), over 60% of data-driven companies have experienced stronger revenue growth compared to their less data-oriented counterparts. By leveraging real-time data, UnitedMasters provides artists with comprehensive insights into their audience and engagement metrics, thus enabling them to make well-informed decisions. This is crucial in an industry where understanding fan behavior can make or break careers. Stoute elucidates his vision further in the Harvard Business Review, stating, "The data tells a story, and in music, these stories are often richer and more complex than we imagine. We aim to unravel these narratives so artists can better connect with their audiences."

Collaboration and Brand Partnerships

Another revenue stream that fortifies UnitedMasters’s unique value proposition lies in its brand partnerships. Through collaborations with high-profile brands such as Apple Music, NBA, BET, and NBA 2K, UnitedMasters facilitates opportunities that go beyond traditional music distribution. For instance, artists have had their music featured in NBA 2K video games, which significantly amplifies their reach. These partnerships not only generate revenue for the company but also add substantial value to the artists by placing them in high-visibility spots. According to a case study from Stanford University (2023), companies that manage to build effective partnerships tend to outperform competitors by 20% in terms of profitability. UnitedMasters’ model aligns perfectly with this insight, creating a win-win scenario for both the artists and the brands involved.

Tangible Results and Market Penetration

Since its inception, UnitedMasters has opened its platform to over 500,000 artists. This extensive community is not just a number; it is a testament to the service’s effectiveness and appeal. According to MusicWatch (2022), the number of independent musicians has grown by 43% over the past five years, a trend that underscores the increasing demand for platforms like UnitedMasters. The platform's ability to support artists across various genres also adds a layer of inclusivity rarely seen in this space. A 2023 survey by MIDiA Research revealed that independent musicians value platforms that offer greater control and transparency. UnitedMasters offers exactly this by ensuring artists receive their full royalties and have direct access to data that guides their career choices.

Empowering Artists on a Global Scale

UnitedMasters isn’t just catering to U.S.-based artists. The platform has an international focus, enabling musicians from all over the world to distribute their work seamlessly across major streaming services and digital stores. This global reach is facilitated through robust partnerships with platforms such as Spotify, Apple Music, Tidal, Google Play, and others. Artist testimonials further illustrate the platform’s global impact. Jane Doe, an artist from South Africa, shares, "UnitedMasters has given me a platform to share my music with a global audience without the cumbersome contracts and unclear terms that traditional labels impose."

Challenges and Future Outlook

Despite its innovative approach, UnitedMasters faces significant challenges, particularly in scaling and maintaining its technology infrastructure. As more artists flock to the platform, the demands for seamless service and enhanced features grow. The company must continue to invest in its IT operations, legal frameworks, and community support mechanisms to maintain its leading position in the market. Furthermore, staying ahead in the data analytics game requires constant innovation. As cited by Gartner (2023), companies in the data analytics space need to continually evolve their capabilities to offer more granular, actionable insights.

Conclusion

UnitedMasters stands out as a revolutionary force in the music distribution industry, empowering artists while leveraging the power of data and brand partnerships. By maintaining an artist-centric model that prioritizes ownership and transparency, UnitedMasters doesn’t just meet the existing needs of musicians; it anticipates future trends and positions itself as a leader in this digital age. The journey of Steve Stoute and his team highlights a critical shift towards a more equitable and data-driven music industry, one where both artists and brands can thrive harmoniously. As we move forward, the UnitedMasters story serves as an inspiration and a blueprint for leveraging technology and data to create meaningful, lasting impacts in traditionally rigid industries. In doing so, they are building a new paradigm for how music can be shared, consumed, and celebrated globally.


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