How Believe Digital wants to bypass the music majors
“Online music is becoming paid for thanks to mobile phones and services like iTunes and Spotify. We feel an acceleration for a year and a half», Explains to Frenchweb Denis Ladegaillerie, CEO and founder of Believe Digital, a digital distribution platform for online music.
Founded in 2005, this start-up is aimed at independent artists and labels who wish to benefit from a turnkey offer to distribute their works on the various music services in streaming (like Spotify, Deezer or Apple Music), downloads (iTunes, Amazon MP3…) and online videos (YouTube, Dailymotion…). Almost ten years after its creation, the company has around thirty offices around the world, 300 employees and more than 150,000 artists using its services. In the end, the company has been profitable since 2010.
To accelerate, Believe Digital bought in April the American start-up Tunecore.com, more or less positioned in the same niche. A funding round of $ 60 million was also completed in June, in particular with the American fund Technology Crossover Ventures, and the French XAnge and Ventech.
It must be said that the company is driven by the craze for online music services. But if the big majors and record companies have revised their models to adapt, this is also the case for artists who are more and more numerous to produce themselves, outside the traditional circuits.
A new distribution model
However, a study by Adami, a performers’ rights management company, published in November 2014, revealed that, out of a subscription sold for 9.99 euros on the main services, only 0.46 euros goes to artists.
“It’s true, but it’s no longer the market reality», Estimates Mr. Ladegaillerie. “For us, an artist who self-produces will receive between 50% and 60% of the price of a download, a subscription, or 7 to 8 times more than if this artist was under contract with a major or a record company.“. More details with Denis Ladegaillerie, CEO and founder of Believe Digital.
Creation date : 2005
Founder: Denis Ladegaillerie
Funding: $ 60 million raised in June 2015
The head office : Paris