Water & Music

Introducing the Music Tech Ownership Ouroboros, 2025 edition ✨ The music-tech sector has come of age. What started as a relatively niche investment thesis five years ago has matured into a powerhouse market segment, drawing tens of billions in capital since 2020. For five years, we at Water & Music have been mapping these shifting power dynamics through our “Music Tech Ownership Ouroboros” — a living document that traces the complex web of investments, ownership stakes, and strategic acquisitions shaping music and tech. Our latest update adds over 30 new relationships to the map, primarily from growth investments and M&A deals in 2024. The takeaway: Private equity firms and major labels are locked in a battle for control over independent music infrastructure. As indie market share keeps climbing, owning the tech backbone is becoming as valuable as owning the actual rights. Highlights from 2024 include: - Hellman & Friedman's majority stake in Global Music Rights — making GMR the third PRO owned by a private equity firm - Virgin Music Group's acquisitions of Downtown Music ($775M), [PIAS], and Outdustry - Flexpoint Ford's growth investments in Create Music Group ($165M) and Duetti ($34M) - KKR's acquisition of Superstruct Entertainment ($1.4B) and debt financing in HarbourView Equity Partners ($500M) - EQT Group and TCV's co-ownership of Believe (alongside CEO Denis Ladegaillerie), as part of taking Believe private - Vinyl Group's acquisitions of Serenade, Mediaweek Australia, Funkified Events, and Concrete Playground Link to the full interactive chart with sources is in the comments. Would love to hear what you think, and if any of these deals feel particularly standout or surprising to you! #musicbusiness #musicindustry #musictech #privateequity #musicinvestment #musicrights

You’ve probably noticed that music tech is at a crossroads. While mainstream coverage chases surface-level trends, our research reveals four critical shifts that deserve your attention, and that we believe will reshape the business in 2025 and beyond: 𝗜𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝘁 𝗺𝘂𝘀𝗶𝗰 𝗰𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗻𝗴 Universal Music Group turned heads with their recent acquisitions of Downtown Music, [PIAS], and Outdustry. Critically, these aren't isolated events —  they represent unprecedented concentration of both market power and valuable data assets. 𝗧𝗵𝗲 𝗰𝗿𝗲𝗮𝘁𝗶𝘃𝗲 𝗔𝗜 𝗵𝘆𝗽𝗲 𝗰𝘆𝗰𝗹𝗲 𝗶𝘀 𝗱𝗲𝗰𝗹𝗶𝗻𝗶𝗻𝗴 Everyone and their mother is launching an AI music tool (we're tracking over 200 of them) — but only a select few are gaining real traction. Behind the scenes, emerging trends in synthetic data and model attribution are quietly laying the foundation for rights holder compensation in an AI-first era. 𝗧𝗵𝗲 𝘀𝘂𝗽𝗲𝗿𝗳𝗮𝗻 𝗲𝗰𝗼𝗻𝗼𝗺𝘆 𝗶𝘀 𝘀𝗵𝗼𝘄𝗶𝗻𝗴 𝗰𝗿𝗮𝗰𝗸𝘀 Many current approaches to superfan monetization are creating unsustainable dynamics. In our webinars, we've mapped the hidden emotional, legal, and structural pitfalls that emerge when artists and platforms prioritize quick wins over lasting relationships. More importantly, we've also unearthed data-driven frameworks for building genuine fan value without fragmenting your community across dozens of platforms. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗽𝗮𝘁𝘁𝗲𝗿𝗻𝘀 𝗮𝗿𝗲 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝗱𝗿𝗮𝗺𝗮𝘁𝗶𝗰𝗮𝗹𝗹𝘆 Suno's recent $125M round represents a fundamental pivot in how value is being created and captured in music-tech — away from traditional streaming platforms, and towards new focus areas like creative tools, live experiences, and community apps. Founders are securing unprecedented funding without industry backing, rights holders are racing to adapt their licensing models, and traditional power dynamics between tech and music companies are being rewritten in real time. --- These developments are why over 1,000 industry leaders — from early-stage founders to major label executives — rely on their Water & Music membership to inform their strategic decisions. A Water & Music membership gives you: 💡 Deep-dive analysis that spots critical shifts months before they hit mainstream awareness 💡 Monthly webinars unpacking emerging trends with the people driving them 💡 Proprietary databases tracking the companies and trends actually moving the needle 💡 Special access to online courses, events, and other resources that accelerate your market understanding For the next day, you can join our membership at 40% off our regular rate. Use code FUTURE2025 to lock in your 2025 membership for $120 (regular price: $200). Offer valid for new and reactivated subscriptions only. See you on the inside: https://lnkd.in/eRrczR2U #musictech #musicbusiness #musicindustry #musicai

🎯 Everyone's talking about superfans saving the music industry — but the reality is far more complicated. In our final webinar of 2024, we brought together three leading experts to break down what's actually working (and what isn't) in fan relationships and business models: - Monia Ali (Fandom Exile) on why fans' loyalty often lies with their idealized concept of an artist, not the artist themselves - Andy Blair (Reverb Data) on the uncomfortable truth about who really controls fan data (hint: it's probably not the artist) - Hanna Kahlert (MIDiA Research) on why launching new standalone fan platforms might be doing more harm than good These insights challenge many common assumptions about superfan monetization, and provide a critical roadmap for artists, managers, and founders building in this space. 🔒 Full recap available exclusively for Water & Music members: https://lnkd.in/exTTvD-m #musicindustry #musicbusiness #fanengagement #superfans #musictech #fandom #musicmarketing

The music industry's obsession with superfans has reached a fever pitch. While everyone rushes to build the next fan platform or monetization strategy, we're overdue for an honest conversation about what's actually working — and what isn't. In Water & Music's final webinar of 2024, we'll bring together three leading voices to challenge common assumptions about fandom, technology, and data ownership. Each speaker will deliver a lightning talk examining an uncomfortable truth about modern fandom, followed by guided discussion and audience Q&A. Our speakers will unpack: 💰 THE CELEBRITY SUPERFAN COMPLEX Monia Ali (Writer/Critic, Fandom Exile) will examine how the current model of emotional monetization — asking fans to pay more for deeper parasocial connections — is creating unsustainable dynamics for both artists and audiences. 🧑⚖️ THE REALITY OF DATA CONTROL Andy Blair (Founder, Reverb Data) will break down why no one truly "owns" fan data from a legal perspective, and how current incumbent industry approaches to data control are on a collision course with privacy regulations and growing artist leverage. 📲 THE PLATFORM PARADOX Hanna Kahlert (Analyst, MIDiA Research) will present an argument for why launching new fan platforms isn't the answer to critical fan engagement challenges, drawing from years of research on failed attempts and shifting artist and fan behaviors. This won't be just another webinar celebrating superfan success stories. We'll be creating space for the critical conversations the industry needs to have about sustainable artist-fan relationships, practical technology solutions, and ethical data practices. RSVP link in the comments, or via the graphic below. Paying W&M members get in free. We'd love to see you there! #musicindustry #musicbusiness #fans #fandom #superfans #musictech

🆔 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻'𝘀 𝗶𝗱𝗲𝗻𝘁𝗶𝘁𝘆 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 Distribution is no longer just about delivering music to platforms. Our latest research reveals how distributors are evolving: ➡️ Expanding into audience development ➡️ Providing sophisticated marketing automation ➡️ Focusing on superfan engagement The future of distribution is about data, not just delivery. Read our full analysis below 👇 #musicdistribution #musictech #musicindustry #musicbusiness #musicdata #datastrategy #artistdevelopment #artiststrategy

❗ 𝗧𝗵𝗲 𝗳𝗮𝗻 𝗱𝗮𝘁𝗮 𝘀𝘂𝗿𝗽𝗿𝗶𝘀𝗲 What's the most popular tool for managing fan data in music? Surprisingly, it's not a music-specific platform. Our research found: 💡 82% of industry pros use generic tools like email & spreadsheets to manage fan data 💡 Only 26% use music-specific solutions 💡 Email remains the No. 1 method for fan data collection Why is it so hard to build a fan data management solution that can meet the speed of music culture? The answer is more complex than you might think 👇 #musictech #musicindustry #musicbusiness #musicdata #fanengagement #musicmarketing #datastrategy

🛡️ 𝗜𝗣 𝗽𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗔𝗜 𝗮𝗴𝗲 The music industry is partnering with tech companies to build a multi-layered defense system for IP in the AI era: ✅ Training data certifications and audits (e.g. Fairly Trained, AI:OK, BMAT Music Innovators) ✅ Output attribution (e.g. ProRata.ai, Sureel AI, Musical AI, Human Native AI) ✅ Music and voice deepfake detection (e.g. Pex, Ircam amplify, MatchTune) ✅ User upload scanning (e.g. Audible Magic, which has partnered with the likes of Suno and Stability AI) ✅ Social platform watermarking (e.g. "Made with AI" labels on Meta, YouTube, and TikTok) Each approach, while being commercially adopted on a mass industry scale, has its own technical and political limitations. Get our comprehensive breakdown of this new landscape 👇 #musicindustry #musicbusiness #musictech #musicai #aistrategy #copyright #intellectualproperty

👥 𝗧𝗵𝗲 𝘀𝘂𝗽𝗲𝗿𝗳𝗮𝗻 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘀𝗵𝗶𝗳𝘁 The old playbook of chasing viral moments isn't enough anymore. Our latest research reveals how top artists are reimagining fan engagement: 📈 Moving fan data management away from major labels, to startups like Openstage 📈 Leveraging next-gen analytics tools like Levellr for more sustained fanbase and community growth 📈 Shifting strategically away from cultivating passive consumption, to leaning into more active participation from fans Even the major labels are now scrambling to build their own in-house superfan platforms and infrastructure to keep up with artist demand. Read our deep dive into how fan-first marketing actually works 👇 #musicbusiness #musictech #fanengagement #musicmarketing #datastrategy #musicindustry #musicdata #superfans

⚖️ 𝗗𝗶𝘃𝗲𝗿𝗴𝗶𝗻𝗴 𝗶𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀 Who has leverage in an AI-first industry? In our latest webinar, we outlined how different stakeholders have conflicting interests when it comes to music AI: 🎯 Artists need strong brands and communities early on in their careers, and can benefit from maximizing their own reach and fan engagement. 🎯 Rights holders need to protect their market share and maximize catalog value. 🎯 Developers and founders need the most cost-effective ways to build products people actually want to use. For each of these participants, bending the market in their favor will directly contradict what other stakeholders want. Dive deeper into the emerging power dynamics behind music AI in our latest analysis 👇 #musictech #musicbusiness #musicai #musicindustry #aistrategy

After years of mapping the music AI landscape, Water & Music is hosting a one-of-a-kind event in NYC, bringing together the builders and operators who are actually moving the needle in this space. No hypotheticals — just real tools and real results that are reshaping how we create, market, and monetize music. 💡 We've assembled an exceptional lineup of speakers who are defining the future of the music and audio AI market: Rebecca Hu — Product Manager (Mobile), Suno Juliette Rolnick — Music Product, ElevenLabs Benji Rogers — Co-President, Sureel AI / Partner, Lark42 and our own Yung Spielburg — Head AI Analyst, Water & Music / Grammy-winning producer In this 2.5-hour session, you'll get: 💡 PRACTICAL APPLICATIONS: Lightning talks showcasing real AI tools being used TODAY across the music value chain 💡 CASE STUDIES: Concrete examples of how artists and teams are driving measurable results with AI 💡 DIRECT ACCESS: Quality time with speakers and fellow attendees who are actively shaping this space With only 40 spots available, we're keeping this intentionally intimate to enable the kind of detailed discussions and connections that actually move businesses forward. If you're a music industry professional looking to level up your AI capabilities, or a founder/investor focused on music innovation, this is the perfect event for you. 🎫 Tickets: $50 (W&M members get 50% off — check your inbox) 📍 Tribeca, NYC 🕐 Wednesday, November 20, 6:30-9:00 PM EST RSVP: https://lu.ma/music-ai-nyc Looking forward to diving deeper with those ready to drive meaningful, thoughtful progress in music AI! #musicindustry #musictech #musicbusiness #futureofmusic #musicai #nyc