UnitedMasters Startup Case Study: Empowering Independent Artists

UnitedMasters

UnitedMasters is a platform revolutionizing the music industry by empowering independent artists. It bridges the gap between creatives and major distribution channels, offering unique opportunities for brand partnerships and ownership retention.

Founding Year: 2017

Headquarters: Brooklyn, New York, USA

Industry: Music: Distribution and Artist Services​

Status: Active

Business Model

B2C, Two-sided, Product & Service

• Clients: Independent music artists at all stages of their careers, seeking to distribute their music, retain ownership of their master recordings, and access opportunities for brand partnerships and sync licensing deals.
• Suppliers: Major streaming services (e.g., Spotify, Apple Music), brands seeking partnerships with artists, and music producers selling beats.

It’s Like: DistroKid but with a Brand Partnership Focus

UnitedMasters provides a similar core service to DistroKid, offering independent artists a platform for music distribution to major streaming services while enabling them to retain ownership of their master recordings. Both platforms operate on a subscription-based model and emphasize artist empowerment.

However, UnitedMasters differentiates itself through:

• Strong Emphasis on Brand Partnerships: UnitedMasters actively seeks out and facilitates collaborations between artists and major brands, creating unique opportunities for sync licensing deals, sponsorships, and other promotional avenues.
• Curated Artist Development: Through programs like “Select,” UnitedMasters provides personalized career guidance, marketing support, and potential access to advances for a select group of artists, going beyond basic distribution.

Barriers to Entry for Independent Artists

• Traditionally, independent musicians faced significant challenges in distributing their music widely and accessing opportunities for brand collaborations.
• Lack of Control and Ownership: Record label contracts often resulted in artists relinquishing ownership of their master recordings and creative control.
• Limited Access to Resources: Independent artists often struggled to access the marketing, promotional, and financial resources available to major label artists.
• Inefficient Distribution Processes: Navigating the complexities of distributing music to various streaming platforms and managing royalties could be daunting for independent artists.

Key Solutions Provided by UnitedMasters

• Simplified Music Distribution: UnitedMasters provides a user-friendly platform for artists to upload and distribute their music to over 50 major streaming services, streamlining the process and expanding their reach.
• Retention of Ownership: Artists maintain 100% ownership of their master recordings, granting them full control over their creative work and revenue streams.
• Brand Partnership Opportunities: UnitedMasters actively connects artists with major brands for potential collaborations, including sync licensing deals, sponsorships, and other promotional avenues.
• Artist Development Support: Through programs like “Select,” UnitedMasters offers personalized career guidance, marketing support, and potential access to advances, providing resources typically associated with record labels.
• Data-Driven Insights: UnitedMasters provides artists with analytics and data insights to track their performance, understand their audience, and make informed decisions about their careers.

Founding Story

• When and How Founded: UnitedMasters was founded in November 2017 by Steve Stoute.
• Founder’s Problem and Experience: Stoute, a veteran of the music industry with experience at major labels like Interscope Geffen A&M Records and Sony Music, and founder of the marketing agency Translation, recognized a shift in the industry with the rise of digital streaming.  He saw that artists were seeking more control over their music and careers in this new landscape.
• Why Able to Start: Stoute’s experience in both music and advertising gave him a unique perspective. He secured a significant $70 million Series A funding round led by Alphabet, Andreessen Horowitz, and 21st Century Fox, giving the company substantial traction from the start.
• Who Joined: Key personnel included Lauren Wirtzer-Seawood as President, Michael Weiss in A&R and Operations, and Katie Longmyer in Experiential Production.
• Solution: UnitedMasters was created as a platform to empower independent artists by providing tools and resources traditionally associated with record labels, but allowing artists to retain ownership of their master recordings.
• First Results: In 2018, UnitedMasters launched its core music distribution feature, “Releases,” enabling artists to distribute their music to major streaming services.
• Continued Growth: The platform gained traction within the independent artist community and continued to grow by securing further funding rounds, expanding its services, and forming strategic partnerships.
• Innovation and Technology: UnitedMasters leverages technology to streamline music distribution, provide data analytics to artists, and connect artists with brands for partnerships and sync licensing opportunities.

Key Growth Milestones

• November 2017: Founded with $70 million Series A funding.
• 2018: Launch of “Releases” distribution feature.
• 2019: Launch of dedicated iOS app.
• 2020: “Cash for Change” initiative launched.
• 2021: $50 million Series B and C funding rounds.
• 2023: Introduction of Blueprint for artist development and Beat Exchange for producers.
• 2024: Debut+ subscription tier launched.
• 2025: Dual Primary feature launched on iOS.

Market & Competition

Target Market

Independent Music Artists: UnitedMasters primarily targets independent music artists at any stage of their careers. This includes artists ranging from those just starting out to more established musicians with substantial streaming numbers.

The platform’s broad appeal suggests it attracts a significant number of emerging artists seeking an alternative to traditional record labels and prioritizing control over their creative work.

Music Producers: UnitedMasters offers a platform for producers to sell beats through its Beat Exchange feature.

Market Size and Growth:

The global music distribution services market is experiencing substantial growth, driven by the increasing popularity of digital music consumption and the rising number of independent artists.

​Market size estimates for digital music distribution services vary but consistently indicate strong growth:

• One report projects the market to reach $1.91 billion by 2032, with a CAGR of 6.0%. ​
• Another report forecasts growth to $1.6 billion by 2030, with a CAGR of 7.2%.

Potential New Markets:

• Africa: UnitedMasters has identified Africa as a key region for expansion, recognizing its burgeoning music market and wealth of talent. The company aims to increase its presence and partnerships in Africa.

Number of Clients and Suppliers:

UnitedMasters serves over 2 million independent artists on its platform. Additionally, the platform collaborates with over 1.5 million producers through its Beat Exchange marketplace.

It distributes music to over 50 top music services, including major streaming platforms like Spotify and Apple Music.

Growth Trends:

• Continued Growth of Independent Artists: The number of independent artists choosing to distribute their music outside of the traditional label system is expected to continue growing.
• Expansion of Digital Music Consumption: The global consumption of digital music through streaming services is projected to increase steadily.
• Growing Importance of Brand Partnerships: Brand partnerships and sync licensing opportunities are becoming increasingly important revenue streams for musicians.

Competitor Landscape

UnitedMasters operates in a highly competitive digital music distribution market with numerous platforms serving independent artists.

• DistroKid: Known for its flat annual fee for unlimited uploads and 100% royalty retention.
• TuneCore: Offers 100% royalty retention but utilizes a per-release or annual fee structure.
• CD Baby: Charges a one-time fee per release and takes a small percentage of royalties.
• Amuse: Offers a tiered model, including a free option with a royalty split.
• AWAL: Focuses on serving independent artists and labels, potentially offering more comprehensive artist support and label-like services.
• Believe Music: Similar to AWAL, provides distribution and artist services.
• Other Emerging Platforms: Artist Republik, Shodement, Venice Music, and Wiseband also compete, often with unique features or focuses.

Marketing & Sales

Main Positioning Values: To empower independent artists by providing premium music distribution services, data analytics, and marketing tools, enabling them to retain full ownership of their master recordings and control over their careers.

Website & Socials

Website: https://unitedmasters.com/ 

• UnitedMasters receives hundreds of thousands of monthly visits (over 370,000), with the majority arriving directly and organically. Referrals, paid search, social, and ads contribute smaller shares of the overall traffic.
• Its largest user base hails predominantly from the United States, followed by other North American regions, Canada, Great Britain, and Spain.
• YouTube (102k subscribers) ranks as the top social media source, with Instagram (745k followers), Tiktok (421k) followers,  Facebook (91k followers), Twitter, X (28k followers), and SoundCloud also driving a notable share of social traffic.

Media Coverage

• Billboard: Extensive coverage of their launch, distribution service, and executive appointments
• Music Business Worldwide: Reported on their hiring of former Instagram executive Lauren Wirtzer-Seawood as President.
• The New York Times: Acknowledged their partnership with TikTok
• MusicWeek: Reported on collaborations, such as the partnership with Twitch
• Yahoo Finance: Reported UnitedMasters collaborations with NFL

Marketing Strategies

• Target Audience: UnitedMasters primarily targets independent music artists at any stage in their careers, from beginners to those with established followings. They appeal to artists seeking autonomy and control over their music and revenue.
• Customer Acquisition:
  • Direct-to-Artist Marketing: Their website and mobile app serve as central hubs for onboarding new users.
  • Strategic Partnerships: Collaborations with major brands like the NBA and platforms like TikTok provide exposure and attract new artists. Through partnerships, UnitedMasters offers advanced marketing solutions such as SymphonyOS Integration where Artists can run AI-powered ads on platforms like Instagram and YouTube, with plans to include TikTok. This tool also provides a dashboard to track streaming and social media statistics.
  • Social Media Marketing: They actively engage with artists on platforms like Instagram, TikTok, and YouTube.
  • Referral Programs: Existing users are incentivized to invite new artists.
• Supplier Acquisition:
  • Streaming Platforms: They partner with major streaming services like Spotify and Apple Music for music distribution.
  • Brands: They collaborate with brands for partnerships and sync licensing opportunities, offering these brands access to their network of artists.
• Key Message: Their marketing consistently emphasizes artist independence, ownership of master recordings, and control over their careers.

Product & Innovation

Key Product & Innovation Points

• Integrated Brand Partnership Network: UnitedMasters’ unique strength lies in its ability to connect independent artists with major brands for collaborations, leveraging founder Steve Stoute’s experience in the marketing industry.
• Artist-Centric Approach: The platform prioritizes artist empowerment and control, allowing musicians to retain ownership of their master recordings and offering a viable alternative to traditional record-label contracts.
• Technology-Enabled Efficiency: UnitedMasters leverages technology to streamline music distribution, provide data-driven insights, and facilitate artist development, making it easier for musicians to manage and grow their careers independently.
• Focus on Emerging Markets: UnitedMasters recognizes the growth potential in emerging music markets, particularly in regions like Africa, and actively seeks to expand its presence and partnerships in these areas.

Financials & Metrics

Revenue Sources

• Tiered Subscription Model: ​UnitedMasters offers a tiered subscription model to cater to artists with varying needs and budgets:​
  • DEBUT: This free plan allows artists to submit one release per month, which is reviewed within 10 business days. Artists retain 90% of their royalties and can cash out once they meet a 20 USD threshold.
  • DEBUT+: Priced at $19.99 per year, DEBUT+ provides unlimited releases to over 50 major music services, including Apple Music, Spotify, TikTok, and Instagram. Artists retain 100% of their royalties and gain access to advanced analytics and personalized guidance from Blueprint, a personal music coach.
  • SELECT: At $59.99 per year, SELECT offers all the benefits of DEBUT+, with additional perks such as faster release reviews (within 2 business days), opportunities to partner with iconic brands, and access to exclusive brand and sync deals.
  • PARTNER: This invitation-only tier provides dedicated artist relations support, global marketing reach, hand-picked brand and sync deals, playlist pitching, and funding opportunities through advances.
• Brand Partnerships and Sync Licensing: The company facilitates collaborations between artists and brands, generating revenue through sync licensing deals for music used in advertising, TV, film, and other media.
• Beat Selling: UnitedMasters provides a platform for producers to sell beats to artists, likely taking a commission on each sale.

Metrics

• Annual Recurring Revenue (ARR): As of November 2021, UnitedMasters achieved a valuation of $550 million following a $50 million Series C funding round led by Andreessen Horowitz.
• Funding and Investments: UnitedMasters has raised a total of $170 million over three funding rounds. Major investors include Alphabet, Apple, and Andreessen Horowitz.
  • Series A: $70 million (November 2017)
  • Series B: $50 million (March 2021)
  • Series C: $50 million (October 2021)
• Employee Count: Estimated to be between 201 to 500 employees.

Structure & Culture

Organizational Overview

• Management: UnitedMasters is structured with a leadership team comprising experienced professionals from diverse backgrounds. Key positions include:​
  • Founder & CEO: Steve Stoute
  • President: David Reich
  • Chief People Officer
  • Vice President of Engineering
  • Head of Commerce
  • Chief of Staff
  • Vice Presidents of:
    • Music
    • Marketing
    • Enterprise Client Services 
    • Engineering
  • Corporate Secretary
  • Director, Commerce
  • Group Creative Lead
• Values: UnitedMasters’ core mission centers around empowering independent artists and democratizing the music industry. They strongly emphasize artist ownership of master recordings and control over their careers. This suggests a company culture that values creativity, independence, and artist empowerment.

Impact & Success

Customer Feedback

• Positive: 
  • User-Friendly Platform: Artists appreciate the intuitive interface, which simplifies the process of uploading and distributing music.​

• Negatives:
  • Account Removals and Payout Delays: Some users have reported sudden account suspensions and delays in receiving payments. A Reddit user shared an experience of losing approximately $60 in royalties due to an unexpected account ban on payday.
  • Customer Service Concerns: There have been complaints regarding the responsiveness and effectiveness of UnitedMasters’ customer support. The platform holds a 2.2-star rating based on 133 customer reviews, with only 17% of users indicating they would recommend the service.

Success Stories

Numerous artists have achieved significant milestones through UnitedMasters:​

• Brent Faiyaz’s Billboard Success: As an independent artist, Brent Faiyaz utilized UnitedMasters to release his music, leading to his EP “F–k the World” debuting at No. 20 on the Billboard 200 in 2020, and his second studio album, “Wasteland,” reaching No. 2 in 2022. ​
• FloyyMenor’s Viral Hit: Chilean artist FloyyMenor released a song independently through UnitedMasters that became the biggest track globally on TikTok in 2024, demonstrating the platform’s potential for viral success.
• Stockz’s ESPN Feature: By leveraging UnitedMasters’ Sync Marketplace, artist Stockz had his track “Guaranteez” broadcast live on ESPN, showcasing the platform’s ability to connect artists with major media outlets.
• NFL Partnership: UnitedMasters has played a pivotal role in advancing the careers of independent artists by facilitating strategic partnerships and providing platforms for greater exposure. A notable example is Tobe Nwigwe, whose collaboration with the NFL has significantly elevated his profile.​ Through UnitedMasters’ partnership with the NFL, Nwigwe’s music has been featured prominently, showcasing his talent to a broader audience. Beyond the NFL partnership, Nwigwe has gained recognition for his impactful music addressing social issues. His track “I Need You To (Breonna Taylor)” garnered widespread attention, highlighting his ability to blend artistry with activism. Additionally, Nwigwe’s entrepreneurial approach to music distribution is exemplified by his purchase of a beat from renowned producer Pharrell Williams, which he leveraged to double his investment. This anecdote was shared during UnitedMasters’ “Earn Your Masters” event, illustrating the platform’s role in empowering artists to navigate the music industry independently. ​

Growth & Future

Challenges and Risks

• Competition: The digital music distribution market is highly competitive, with established players like DistroKid, TuneCore, CD Baby, and others vying for artists.
• Customer Service: Addressing negative customer feedback regarding account management, payouts, and customer service is crucial for improving user experience and building trust.
• Dependence on Brand Partnerships: The success of brand partnerships and sync licensing opportunities relies on continued brand interest and investment.

Future Plans

• Global Expansion: UnitedMasters aims to increase its presence and partnerships in regions like Africa, recognizing the continent’s growing music market.
• Comprehensive Artist Support: The company aims to be a “consistent co-pilot” for artists, offering support and guidance throughout their careers.
• Continuous Innovation: UnitedMasters plans to continue developing new features and tools to enhance its platform and empower artists.

Key Takeaways for Entrepreneurs

• Solve a tangible pain point, even in a crowded market: UnitedMasters identified clear challenges faced by independent artists – distribution hurdles, lack of ownership, limited resources – and built a solution directly addressing these pain points. Even in the competitive music industry, a laser focus on solving real problems can lead to success.
• Leverage your unique network and expertise: Steve Stoute’s background in marketing and brand partnerships became a key differentiator for UnitedMasters. Don’t underestimate the power of your existing network and experience; they can be invaluable assets in building a unique value proposition.
• Empowerment is a powerful motivator: UnitedMasters tapped into the desire for autonomy and control among independent artists. Consider how your startup can empower its target audience and offer them greater control or ownership in their respective domains.
• Think beyond the core product: While music distribution was the foundation, UnitedMasters expanded its offerings to include artist development, brand partnerships, and data insights. Explore complementary services or features that can enhance your core product and create a more holistic ecosystem for your users.
• Don’t underestimate the power of the “long tail”: UnitedMasters recognized the vast and often overlooked potential of amateur and independent musicians. Explore niche markets or underserved segments where your startup can cater to a large, passionate audience often ignored by larger players.