Interesting news in the stock audio and stock footage fields, more specifically from stock music specialist Artlist (from the same owners of Artgrid stock footage service) who has announced the raising of $48M in fundings from several investors, led by private equity firm KKR.
The filmmaker-oriented company stated its healthy balance to date and that the fundraising responds to their want to tap on growth opportunities, following the (ironically) positive impact the Covid19 pandemic has had on their business.
$48M from Private Investors to Cater to Bigger Audiences
In dialogue with TechCrunch, Artlist's co-founder and co-CEO Ira Belsky explained the company has been “cash flow positive” in the four years since its launch, and that the raised funds are intended to fuel company growth to reach out bigger market segments.
Such funds, a staggering $48M, come from several private investors. The lead is KKR, a private equity firm that bought Fotolia back in 2012 (and later sold it to Adobe) and there is also Elephant Partners, a venture capital firm that has already backed Artlist before.
Their plan is to use this cash injection to improve user functionality and user experience through AI tech –particularly in searching for the right music track or footage clip–, among other upgrades that focus on capturing the large pool of new users that result from the combination of natural consumer market progression and the Covid19 pandemic.
Artlist Doubles Down on Growing Video Market
Artlist came to be after founders noticed the struggle to find high-quality stock audio for true storytellers. As the existent offer was a tad too commercial and repetitive, they decided to create a stock music library that provided the depth and the artistic edge many filmmakers and creatives like them were after, also looking to simplify the licensing process through an accessible, unlimited downloads subscription. Not long after, the sister site Artgrid surged as well, applying the same philosophy and business model to stock footage.
The consumer market for video is anything but slowing down. According to experts, video content represents 58% of internet traffic and is also a significant part of social media and gaming, the next top traffic-driving segments.
This translates into more creatives needing to produce more video content, faster, easier and more cost-efficiently. And this is the goldmine Artlist is setting themselves to mine.
Covid19 Fuels Video & Stock Media Demand
Another interesting fact exposed by Artlist at this time is the big impact the Covid19 worldwide pandemic has had on both sides of their business. A positive impact at that.
On one hand, the lockdowns and social distancing have caused more people to stay home and consume more video content every day. On the other, the same restrictions for social life and public places access have made that many filmmakers, music producers and creatives are just impended from shooting or recording native content, thus resorting to stock audio and stock video to get their projects done. Has this happened to you?
Companies like Artlist have a great chance to ride this unexpected growth wave and it looks like that’s exactly what they’re trying to do.