Matt Pincus Talks the Financialization of the Music Industry: ‘It Feels a Little Bit Like Gentrification’

The euphony concern is changing — and fast. Between the 3 large euphony companies — Sony, Universal and Warner — restructuring their recorded euphony divisions, the emergence of generative AI tools successful the signaling studio, the maturation of streaming work subscriptions slowing down, the trouble of turning TikTok virality into existent fans, it’s communal to perceive euphony concern workers question wherever the manufacture is going next. And with an wide shaky system and occupation market, the aboriginal feels adjacent much uncertain. 

For this week’s occurrence of Billboard’s new euphony concern podcast On the Record w/ Kristin Robinson, prominent euphony manufacture capitalist and entrepreneur Matt Pincus comes connected the amusement to explicate however the euphony biz has transformed, wherever helium sees it going next, and however it progressively relates to the wide economy.

Pincus is possibly champion known arsenic the laminitis of autarkic steadfast SONGS, which rapidly grew into a formidable subordinate successful euphony publishing, signing acts similar The Weeknd, Lorde, Pharrell, Diplo and much during its tally from 2006 to 2017. After Pincus sold the company to Kobalt for a reported $150 million, helium decided to refocus his vigor connected helping different investors physique up euphony empires of their ain done his concern company, MUSIC. To date, he’s deployed $180 cardinal successful superior crossed businesses similar Splice, HIFI, LVRN, Kobalt, Dice and Soundtrack Your Brand. 

Below is an excerpt of our speech connected this week’s occurrence of On the Record, focusing connected 1 country of alteration that Pincus has been watching particularly closely: the financialization of the euphony business. 

Watch oregon perceive to the afloat occurrence of On the Record connected YouTube, Spotify oregon Apple Podcasts here, oregon ticker it below.

I deliberation the investors’ position is truly adjuvant close now. It feels similar we are connected the precipice of a batch of alteration successful this manufacture crossed galore sectors. I’ve been trying to recognize why, and 1 of the things I cognize you’ve mentioned to maine earlier is however the expanding financialization of the euphony concern is truly having an impact. Can you explicate what you mean by that? 

This has been a large change, starting possibly 10 years ago, but truly 5 years ago. When I was younger, the euphony concern had 2 kinds of investors: the large labels, and past backstage wealth — usually affluent entrepreneurs who would enactment wealth down backstage businesses. Every present and then, you’d get a stray pension fund. That was looking for returns for their in...