LoveLive has doubled its revenue yearly since its founding, projecting revenues of $10 million in 2014
The music video industry is a complex place. When it comes to syndicating music and compensating the recording artists, their record labels, and the music video producers, one can quickly encounter a myriad of technical and legal difficulties.
London-based startup LoveLive seeks to change this, and afford both music creators and online publishers the ability to enjoy the benefits of each other’s services in a streamline and simplified manner. LoveLive was founded by in 2008 by Richard Cohen, who had extensive experience in monetizing sports videos. Richard sought to replicate this process in the more complex world of music videos.
To do this, LoveLive created strategic partnerships with the industries major and independent music labels. They also acquired Rockfeedback and Show Cobra, two production companies that allow them to create their own content. Finally, they created a video sharing program, LPlatform (currently in its beta stage) which offers publishers the option to show content, or stream it for free in exchange for ad placements.
Essentially a B2B music video monetization platform, LoveLive has distributed the music of superstars like Madonna, Rihana, and U2, to syndicators and publishers like Pepsi, Nike, Samsung, and Heineken. A recent partnership they signed brought in Spotify together with online publishers The Guardian, Time Out, Q and Rolling Stone – for which LoveLive filmed a series of 12 concerts that were broadcast weekly over a course of three months on their native LPlatform player.
There are currently other platforms that perform parts of this syndication process. Some produce music like Sonic Media Group. Others produce videos, such as Vice. Then there companies that distribute videos, such as Unruly. However, LoveLive representative Martin McGourty told Geektime that “to our knowledge, we don’t have any direct competitors that offer the full spectrum of end-to-end music content solutions”. LoveLive’s ability to distribute music videos on a global scale while making it easy for artists to monetize their music in a straightforward manner provides them with a unique strategic advantage.
LoveLive has doubled its revenue yearly since its founding, projecting revenues of $10 million in 2014, and its already secured $5 million in funding from Universal Music Group, Access Industries’ Jorg Mohaupt, and several executives from Perform Group. Their monetization strategies include licensing videos to distributors, broadcasting ads along with their content, and direct partnerships with brands who use their platform for digital marketing purposes. For example, when Virgin Atlantic airlines was looking to create “an inflight music experience like no other”, they turned to LoveLive, who created four 60 minute specials for them, showcasing live performances, music festival footage, and artist interviews.
LoveLive’s strength lies in the strategic partnerships it has succeeded in forming with both key players in the music industry, as well as leading global brands. Their value comes from their having streamlined the syndication process for all parties involved, not in the technology of their platform which can be replicated. If they can continue to develop these relationships, especially in the form of exclusivity deals, LoveLive will continue to cement their position as a global leader in providing premium music video content.