Apple Invests $50M in UnitedMasters Music Distribution
UnitedMasters Secures $50 Million Series B Funding Led by Apple
UnitedMasters, an independent music distribution platform and toolkit provider, has successfully closed a $50 million Series B funding round. This investment was spearheaded by Apple, with continued participation from a16z and Alphabet. Concurrent with this funding, a strategic partnership between UnitedMasters and Apple has been established.
About UnitedMasters
Founded in 2017 by former Interscope and Sony Music executive Steve Stoute, UnitedMasters offers artists a unique approach to music distribution. The platform focuses on delivering artists direct access to data concerning fan engagement with their content and community.
This direct access empowers artists to offer merchandise, tickets, and other commercial opportunities more effectively. Crucially, UnitedMasters generally enables artists to maintain ownership of their master recordings.
A Shift in Industry Norms
These conditions represent a significant departure from traditional music industry practices. Typically, record labels retain both audience data and master recordings, limiting an artist’s agility and ability to leverage new technologies for community building.
Apple’s Strategic Investment
While Apple frequently invests in companies, it often prioritizes those involved in U.S. manufacturing or those supplying critical hardware components, such as silicon foundries or glass manufacturers. The investment in UnitedMasters represents a comparatively unique partnership, particularly within the music sector.
CEO Steve Stoute on the Partnership
Steve Stoute, CEO of UnitedMasters, shared insights into the deal and its implications for the platform’s one million current artists and future growth. He attributes the success of the agreement to Eddy Cue, an Apple executive, whose vision aligns with UnitedMasters’ core principles.
“Our aim is to provide equal opportunity for all artists,” Stoute stated. “Independent artists currently face systemic disadvantages, and we are dedicated to dismantling those barriers.”
Future Plans and Global Expansion
The newly acquired funds will be allocated to expanding the UnitedMasters team with talent focused on global expansion. The company is actively seeking both local technical expertise and artist-focused personnel to build out the platform internationally.
“Every artist requires access to a Chief Technology Officer,” Stoute emphasized. “Some of the responsibilities currently handled by managers should be transitioned to a dedicated technical role.”
Image Credits: Steve StouteUnitedMasters intends to provide this technical support at scale, enabling artists to cultivate their fanbase at a community level.
Existing Partnerships and Direct Distribution
Currently, UnitedMasters maintains partnerships with organizations like the NBA, ESPN, TikTok, and Twitch. These collaborations allow artists to access significant brand deals that are traditionally managed by labels and managers.
The platform also features a direct distribution application, facilitating publishing to all major streaming services. Artists can readily monitor stream counts, fan data, and earnings through a streamlined interface.
Statements from Apple and Andreessen Horowitz
“Steve Stoute and UnitedMasters are empowering creators with increased opportunities to advance their careers and share their music with the world,” said Eddy Cue of Apple. “Independent artists are vital to the music industry’s growth, and both UnitedMasters and Apple are committed to supporting them.”
“UnitedMasters has fundamentally changed how artists create, maintain ownership of their work, and connect with their fans,” added Ben Horowitz, co-founder and general partner of Andreessen Horowitz. “We are excited to collaborate with Steve and his team to foster a more profitable and thriving ecosystem for musical artists.”
A Turning Point for Artists and Fans
The music industry is currently experiencing a pivotal shift in the relationship between artists and their audiences. While numerous platforms facilitate artist-to-fan communication, the core business of distributing work and generating revenue has historically remained outside of artists’ control.
Emerging technologies like NFTs, DAOs, and social tokens, alongside the rise of direct-to-consumer models, are beginning to reshape this dynamic. However, major industry players have yet to fully embrace this “artist-centric” approach.
Rethinking the Distribution Layer
The current distribution infrastructure has been shaped by DRM and the DMCA for decades. This system was presented as a means of protecting artist value, but was, in reality, designed to safeguard the interests of distributors. A fundamental re-evaluation of the entire distribution layer is necessary.
As previously noted regarding the UnitedMasters + TikTok partnership, it holds significant promise for a more equitable future for artists.
Within the music landscape, Apple and Spotify are central to this evolution. A notable oversight by Apple Music in recent years was the failure to establish Apple Music Connect as a standard portal for artist-fan interaction, direct distribution, ticket sales, and—most importantly—community ownership.
The partnership with UnitedMasters doesn’t guarantee this outcome, but it certainly provides the necessary components. The potential results of this collaboration are highly anticipated.
