STOCKHOLM (Reuters) – Epidemic Sound, backed by Spotify’s investors, is one of a new wave of music companies expanding rapidly on the back of demand for easy access to original music from commercial users, especially YouTubers.
The global market for digital content creation, a rapidly expanding part of the entertainment industry and the quickest growing part of Epidemic’s business, is valued at nearly $11 billion and is expected to grow around 17% a year until 2025, according to market research firm Kenneth Research.
Sweden’s Epidemic managed to double its revenue last year to 234 million Swedish crowns ($24 million), as it muscles into the same market as traditional record labels, such as Universal, which hold copyrights and charges royalties, while also competing with tech giants like Apple which recently launched a music for business service.
Epidemic has a royalty free business model, making up-front payments for each track bought from musicians. It splits all music…
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