Steve Stoute, UnitedMasters, and the Independent Artist Takeover

When it comes to success in the music industry, one name stands out notably- Steve Stoute. In terms of experience, Stoute has quite the resume. From former president of urban music at Interscope and Sony, to managing Mary J Blige, Stoute has worked up an established reputation in the music industry.

However, Stoute’s most recognizable accomplishment came forth when he founded UnitedMasters. UnitedMasters is a distribution and services company that launched in 2017 with $70 million in funding from Alphabet/Google. 

Their business model is very simple. Essentially, anyone can upload their music through their platform. From there, United Masters takes a 10% cut of revenue from their distributed tracks on services like Spotify, Apple Music and Tidal. 

United Masters has received a massive uptick of independent artist submissions throughout the pandemic and is growing rapidly. A great example of United Masters helping raise an artist to stardom came from helping Memphis rapper NLE Choppa receive about half a billion streams before he wound up signing to Warner.  Stoute is a firm believer that the market share for independent artists will explode in the coming years, thanks to services like UnitedMasters. 

Criticism of the way major labels sign artists is of no new territory for individuals like Steve Stoute. One of the biggest assessments made by Stoute is that the record industry is no longer what it used to be. Stoute recalls the traditional record business being built on talented individuals finding artists, grooming them and then handcrafting that artist to be a superstar (Stoute Interview, 10:50). Now, it is just what Stoute calls the “lottery business”. 

This “lottery business” is further explained by Stoute with an example of the song “Roxanne” Released by Arizona Zervas. When this record was released through UnitedMasters, the record company gave Zervas $11 million for the one song. Stoute emphasizes the fact that these labels pay exorbitant amounts of money to own the rights to your music when they were not part of the picture in actually helping grow you as an artist. Considering that the artists’ success is happening naturally here in the case of Arizona Zervas, why not be able to keep your masters? “The music exists, and the fans already chose it” (Stoute Interview, 12:50).

Stoute goes on to say that artists should really try to remain independent as long as possible. One of the biggest reasons is because there is such little barrier to entry in terms of releasing your music. Being independent means no restrictions, no limitations. Your creative ability to do what you desire as an artist and pursue the vision you have for yourself is in your own hands. 

With music now able to be distributed so easily, it is out there to stay forever. You should go as long as you can with owning the rights to your own music.

Eventually, there may be a time to consider signing to a label, and that is when you have the power to leverage yourself. Stoute emphasizes the fact that if you are going to go that route and forgo the rights to your music, go get as much as you can. There isn’t a set price for your work, might as well charge what you find fitting and see who bites. 

My feelings on the way recorded music is distributed remains pretty positive. I value distributors and aggregators' role in making music available worldwide through a very simple process. The upfront fees or charges associated with doing so are not outlandish, and is a small price to pay for the distribution of your work. UnitedMasters is a great example of a distributor that values the artist and allows them to choose the deal that works best for them. I am very excited to see the continued growth of UnitedMasters and the partnerships that they develop in years to come!

Nathaniel Meyerowitz is an MBA student at William Paterson University with a concentration in Music and Entertainment Industries - ranked one of the best music biz schools in America by Billboard Magazine in 2020. Nathaniel is passionate about music and is a member of the New York City GrammyU chapter that works alongside the Recording Academy to network with and foster the next generation of music industry professionals. Nathaniel has some experience in label work and festival operations and loves to play guitar on the side. View Nathaniel's profile and connect with him on LinkedIn, as he is always looking to expand his network.