Audiam, the company started by Tunecore co-founders Jeff Price and Peter Wells to serve publishers and publishing administrators to get them paid accurately from interactive streaming music services, has just raised an additional $1 million in funding from a group of individual strategic investors.
The list reads like a who’s who in the industry and includes such executives as Tom Windish of the Windish Agency; Cliff-Burnstein, co-founder of Q Prime Management; Mark Geiger, head of music, and Berkely Reinhold, global head of music business affairs, both at William Morris Endeavor; Victory owner Tony Brummel; Distrokid founder Philip Kaplan; Howard Grossman, co-founding partner of WG & S LLP; Bill Silva of Bill Silva Entertainment; Provident Financial Management and artists Jason Mraz and Jimmy Buffett; and artist manager Tom Atencio.
Some of those investors already contributed to the $2 million the company had previously raised since its launching in the first quarter of 2013. Audiam initially targeted the opportunities created by user-generated videos on YouTube, whereby its automated system seem to only catch and identify about 50% of the videos that use music. But Audiam has since diversified into the broad music publishing administration sector. Its clients include Metallica, Red Hot Chili Peppers, Trent Reznor, Steve Miller Band, the Four Seasons, Victory Records, Epitaph Records, as well as publishers like Imagem, House of Hassle Publishing.
In the world of streaming where as many as 25 million songs are available, its often hard to match completely the right holders with all those songs. Consequently, Price estimates that at least 15% of streaming revenue is not paid out, or is paid to the wrong rights holder. He says Audiam targets that niche.
Like with TuneCore, Atencio says that, “Price has identified a segment very early where there is opportunity because of all the streams that are not being fully paid out.” Price is like a digital rights traffic cop, making sure his clients get paid what they should be getting, he said.
“You will notice that all the investors are from the music industry,” says Atencio. “Private equity and venture capital don’t understand this business; its better to go with strategic investors.”