Flipagram Raises $70 Million, Announces Major Label, Music Publisher Deals
Overwhelmed by the many social media channels you should be following and participating on? Your anxiety level just increased thanks to a new kid on the block that's attracting users in the tens of millions and just got $70 million to expand.
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Flipagram, an photo, video and music sharing app has closed a $70 million round , led by Sequoia, Kleiner Perkins Caufield & Byers and Index Ventures. Michael Moritz, chairman of Sequoia, and John Doerr, general partner at Kleiner Perkins Caufield & Byers, have joined the startup's board of directors.
Flipagram has 20-30 million regular users who use the app to create short photo-video stories set to music.
Today the company announced global licensing deals with top record companies, distributors and music publishers including Universal Music Group, Sony Music Entertainment, Warner Music, Merlin and The Orchard, Sony/ATV Music Publishing, Universal Music Publishing Group and BMG.
With the assistance of the National Music Publishers Association, Flipagram has also made a licensing agreement available to its independent music publisher members. These deals give Flipagram’s users access to millions of short music clips to use in their Flipagrams. The app includes a link to buy on iTunes
Here's an example:
$70 million? That’s a lot of beer. Any guess as to how much of the $70M ends up with the labels & publishers? I’ll go with 60%.
Does Vine or Instagram have a deal like this? If not, they will tomorrow and Flipagran will be hurting.
60%? Doubtful! Out of all the billions of VC capitol spent on all these web-based “music” companies, the writers and artists get next to nothing. 500,000 streams won’t buy you lunch in Hollywood. The music-web emperors have no clothes, and never will.
http://WWW.SOUNDCLOUD.COM/ADDAMBONGG .. SMOKE A JOINT AND PLAY IT LOUD 🙂
don’t hold your breath, dude .. they know zip about this music ..