MUSIC led $15 million pre-growth investment to unlock the $40 billion background music opportunity, facilitating B2B music subscriptions as a core driver of ARPU improvements worldwide
STOCKHOLM, N.Y., June 14, 2023 — Soundtrack Your Brand, the leading global music streaming service for businesses, today announced its $15 million pre-growth round led by MUSIC, a holding company led by Matt Pincus in partnership with Liontree, JS Capital Management and Schusterman Family Investments.
The round also included funding from leading music investors Dundee Partners and was supported by all major existing Soundtrack investors including Balderton Capital, Fuel Venture Capital, Industrifonden, Telia and DIG.
“It’s hard to believe but, before Soundtrack Your Brand, business owners had no legitimate option to play music on demand for their customers,” says Pincus. “Almost every business has some need for music – and most business owners believe that music creators should be paid for their work. It sounds obvious, but it took a mountain of technological and business innovation to bring on demand music to enterprise and Soundtrack nailed it.”
Soundtrack’s current ARPU is $33 and growing, compared to the B2C average of around $5, so the industry should be really motivated to support Sars’ ambition to digitize the legacy background music market. Soundtrack Your Brand unlocking the B2B market represents one of few tangible solutions to increasing ARPU for streaming worldwide.
The investment enables Soundtrack Your Brand to double down on its successful go-to-market strategy, delivering 60% YoY revenue growth in 2022, unlocking EBITDA profitability in Q1 2023 and reaching $25 million in ARR closing April 2023.
“Our mission to bring transparency and accountability to the dysfunctional background music market is gaining momentum,” Soundtrack Your Brand CEO Ola Sars said. “Our financial performance and operational efficiency are both already very strong, but with this investment Soundtrack Your Brand can expand our growth model into M&A, consolidating the fragmented background music market and ensuring continued premium ARPU and fair compensation to music creators.”
In conjunction with MUSIC’s investment, Pincus will join Soundtrack Your Brand’s board and support the company’s mission.
Moving into 2024, the company will raise in an additional growth round to fund the further consolidation of the global background music market.
For more information about Soundtrack Your Brand, visit soundtrackyourbrand.com.
ABOUT SOUNDTRACK YOUR BRAND:
Soundtrack Your Brand helps thousands of businesses strengthen relationships with customers through music. Supported by its leading AI platform powering music selection for brands, Soundtrack Your Brand provides a beautiful, all-in-one solution for streaming music to stores, hotels, restaurants, and other commercial settings. Soundtrack Your Brand was founded in 2013 by Ola Sars as a joint effort with Spotify, as Spotify for Business. Soundtrack Your Brand is the world’s fastest-growing B2B music streaming service. Clients include iconic brands such as McDonald’s, Lululemon, Uniqlo, Joe & The Juice, Aesop and Tag Heuer, to name a few. Learn more at soundtrackyourbrand.com and @soundtrackyourbrand on social media.
MEDIA CONTACT:
Elle Welch
[email protected]
(423) 605-5553
SOURCE Soundtrack Your Brand
