US firm Create Music Group says it will have retrieved $45m of digital royalties for its artist and label clients this year, and expects this to grow to $100m in 2019. That’s according to a profile of the company published by Forbes, tracing Create’s evolution from its early days chasing down YouTube royalties for dance-music artists. Marshmello, Migos and Tekashi 6ix9ine are among its clients now.
The piece outlines the company’s addition of distribution, publishing and recording capabilities, with teams focusing on genres including EDM, hip-hop and viral music, and the company promising to pay royalties out within 48 hours of receiving them. Plus some fund detail on how the company persuaded Marshmello to sign with it. “We said we’d advance him $150,000 and if we couldn’t double what he was making within 90 days, we’d take zero percent royalty and he could keep 100% of the money,” says CEO Jonathan Strauss.
It’s the latest example of a company springing out of (or in this case, around) the YouTube ecosystem, and then diversifying into more-traditional areas of the music industry. And (perhaps not a coincidence) the profile is a well-timed calling card for Create Music Group’s potential as an acquisition, at a time when major labels’ wallets have shaken off the dust from the industry’s 15-year post-Napster decline.