A year ago, koren publishers and publishers were a handful of guys working on their own website.
Today they’re bigger than ever, with more than 1,000 employees and over 50 publishing houses.
But it’s still a small business, and the future of koren publishing looks pretty bleak.
This is a story of how a small startup with a niche is trying to make it big.
Koren publishers are trying to be the next big thing for music publishing.
1:32 Music publishers and labels can afford to lose millions of dollars annually by being too conservative with the number of artists they publish, says David Schramm, founder and CEO of kotaku.com, which helps musicians get paid.
“I’m a big believer in letting the market decide what’s going to be popular, what’s not,” he says.
“We don’t need to do that.”
The number of music titles available online is growing, but it’s not growing as fast as the number written about, says Schrams son, Daniel, founder of indie label, SoundCloud.
“What happens is that you have so many new artists, and so many labels are trying so hard to figure out who their best artists are and who’s going where,” says Daniel.
In the past few years, music publishing has seen a lot of consolidation. “
Then you have this huge pool of music artists that aren’t making any money at all.”
In the past few years, music publishing has seen a lot of consolidation.
There are now more than 100,000 music publishers in the US, according to industry research firm NPD Group.
While it’s been a tough few years for the music industry, the publishers are doing everything they can to survive.
“It’s going into this very dark place,” says David Haddad, CEO of the New York-based publishing house, SoundExchange.
“They are making this business more difficult, because there’s less money coming in.”
The music industry is a multi-billion dollar industry, says Daniel Schram, and with it comes more competition.
“The music industry can’t survive unless it has some sort of protection,” he said.
“If we don’t have this protection, then the industry has no incentive to try to innovate and grow and do something new and exciting.
So they’re going to take what they’ve got and just make a profit.”
Music is the biggest category of music that has ever been written about online, and it’s the number one category for paid music sales.
According to Nielsen, the music market is worth more than $70 billion.
SoundExchangers, a company that tracks paid music, estimates that about 25 percent of all music is paid.
With a growing music business, that number has grown by 70 percent over the past decade.
Music publishers need to find ways to survive and stay profitable.
Soundexchange estimates that it’s now costing about $20 per song to reach a million listeners on SoundCloud, according the company’s own data.
And the more people you have in the market, the more you’re going up against Spotify, Soundexchanges research shows.
SoundCloud has been able to attract artists from all over the world, because it’s an open platform.
If you sign up to SoundExchanges site, you’re not restricted to a single genre.
The platform has a free tier that allows artists to upload music they make for free to SoundCloud and sell it on the platform.
SoundEXchange is tracking over 400,000 artists, including many popular artists.
“Our biggest concern is that these artists are being paid for what they’re doing,” says Haddads son.
“So if we can make it easier for them to get paid, then we’ll be able to stay in business.”
Music publishers like to make money off their music.
According for the first time, SoundShare, a service that allows music labels to share their music with fans, has over 400 million subscribers.
And if you think about it, this is actually a way to make a lot more money.
SoundShare has raised $3.3 billion since launching in 2009.
The company says it has more than 2 million active users, and is growing every month.
SoundShout, a platform for music publishers that lets them share songs with fans and stream their music, is valued at $4.4 billion, according research firm eMarketer.
Soundshare has a much larger audience, but is still in a small niche.
It’s currently serving about 2.5 million subscribers and it only has around 10 million active members.
SoundSHOUT is still profitable, though, and has already received $1.7 billion in funding.
But even if SoundSHout is profitable, it’s unlikely to last forever.
SoundShares valuation is $1 billion, and SoundExChangers estimates that SoundShouts valuation is around $1 million.
“That’s the bottom line for SoundEx,