If and when the next music superstar emerges, Spotlite will be more than ready to help them take the next step.
SoundCloud gave the music industry Chance the Rapper and Post Malone. Musical.ly launched the careers of Anna Zak and Baby Ariel. Justin Bieber and Cody Simpson became famous through YouTube. With so many established platforms producing music superstars, how would a new social-based music start-up fare?
Very well, apparently.
Spotlite, a direct-to-fan karaoke singing app, has announced that it has raised $10 million in funding from Sequioa Capital China and BlueRun Ventures. The company will use the funding to broaden the mobile app. Currently, the app is available on iOS and Android.
Here’s how it works.
After signing up using Twitter or Facebook, artists can start broadcasting their performances live. On the app, they can sing their favorite songs or brand-new ones to fans around the world. Artists can also record and upload their own video and audio.
In addition, artists can compete in Spotlite’s free contests, including the most original performances, karaoke, and best cover songs. Winners will receive cash prizes in a token-based system that encourages donations, and rewards participation by top singers.
On the app, listeners can purchase virtual coins to give to their favorite musicians. For example, with a $5.99 in-app purchase, fans will receive 599 coins. Musicians can then convert the coins that they receive into real cash.
Artists can cash out up to $500 each day.
Speaking with Digital Music News, Gina Juliano, Spotlite’s VP of Marketing, explained the company’s philosophy.
“The Spotlite app is poised to lead with a new business model — a platform where an artist can build a fanbase and be compensated. Our primary goal is to find talent and establish a music community. We are a talent incubator.”
The app currently has 250,000 active users.
The company has also gained support from multiple key players in the music industry, including Sony/ATV, Universal Music Group, BMG, Warner/Chappell, and EMI.
Featured image by Spotlite
Raising money doesn’t equal doing very well. 100,000 of people raise money for start ups. This app may or may never do well. They have done the smart thing by avoiding the major music start up failure of trying to take on the streaming model and repackage it. This is a direct to fan platform and there are a ton of apps doing things very similar to this. It may never make back that 10 million investment and in 3 years DMN could be covering its “shutting down” story. Seems strange to call
raising money doing very well.
Nothing to see here except a paid advertisement disguised as editorial
There are dozens of direct-to-fan platforms non of them worth $10 million. This music tech scene is about to burst.