The HIFI music industry’s âfinancial rights organizationâ has acquired The Music Fund, which offers artists upfront payments in exchange for a portion of their streaming earnings.
HIFI, which is only for members, recently unveiled its takeover of The Music Fund (TMF) – along with details of the transaction, excluding the sale price. For reference, TMF was founded in 2017 and has seen a surge in user numbers last year as COVID-19 lockdown measures have kept musicians from touring and earning a living.
In short, The Music Fund allows artists who earn $ 5,000 or more from streaming each year to sell a percentage (which artists choose) of their main royalty income for a period of two years. TMF then makes a lump sum payment – not a loan or advance, with no obligation on the part of the recipient – and the rights to the song revert to the creator at the end of the agreed window.
HIFI, headquartered in New York, on the other hand offers its members – âanyone who earns music royalty income is a good candidate to joinâ – âthe support and solutions they need to achieve transparency and transparency. financial independence, âaccording to the platform’s website. This support and solutions include events, workshops and âpersonalized financial products and servicesâ.
Returning to the purchase of The Music Fund by HIFI, the former entity’s superiors are specifically looking to integrate and leverage the AI ââthat allows artists to apply for and receive funding in approximately 24 hours through TMF. , simply by entering their royalty details and preferred terms on the service’s website, by PYMNTS.
Music Fund co-founder and CEO John Funge – formerly director of data science for Winton – is expected to join the HIFI team as chief technology officer, along with TMF co-founder and CTO Thomas Jerde (formerly a senior data scientist and R&D director for Knack.it) as vice president of data science for HIFI.
Notably, the sale of TMF to HIFI marks the third high-profile deal in the music industry involving AI-driven companies in the past week or so. Yesterday, song playback monitor Utopia Music acquired Musimap, an AI-based music analysis and classification entity backed by Quincy Jones, for example. Additionally, AI label Snafu Records recently raised $ 6 million from investors, including ABBA’s Agnetha FÃ¤ltskog, following a $ 3 million fundraiser in February 2020.
In other acquisition and fundraising news, Bandzoogle bought up DJ SoundJam website creation service this week, while music licensing startup Lickd received $ 7 million in support from Warner Music. and others. Finally, the ticketing and music discovery platform DICE announced the completion of a Series C “up to $ 122 million”.