Audiostock, which operates the royalty-free stock music service “Audiostock” that allows you to buy and sell music licenses, will raise approximately 670 million yen through a third-party allotment in the Series C round on November 24th. Announced funding. Underwriters are Susquehanna International Group (SIG), a lead investor, Ceres, a new shareholder, Vector, a Japanese venture capital firm, an existing shareholder, the Chugoku Bank Group, and HBCC Technology Investment. The cumulative amount raised since the company was founded was approximately 1.1 billion yen.
Established in October 2007, Audiostock develops a platform business that entrusts music creators’ music works and sells and distributes them through Audiostock. The number of registered creators is 20,000, and the number of sound sources handled is more than 700,000, which is the largest number of songs in the world.
With this service, music creators can register their own music and sell their usage rights, and receive royalties according to sales. Customers can obtain music licenses simply by purchasing separately or by making a subscription, and can incorporate music into commercial content such as videos, games, apps, advertisements, and videos posted on SNS. By completing everything from contracts to royalties distribution online, we are building an environment where we can earn appropriate profits and support people who produce music works.
As the number of users of the flat-rate plan that started in 2019 is increasing and the overseas demand for Japanese music content is high, we will strengthen system development costs and advertising costs with the aim of further expanding our share in Japan and overseas. It is said that it raised funds for the purpose. So far, the company has raised 262 million yen in a series A round in March 2018 and 120 million yen in a series B round in June 2020.
The funds raised include “advertising costs for acquiring new customers in Japan and overseas,” “development costs for strengthening the Audiostock system,” and “costs for acquiring and producing high-quality music content.”
Advertising costs to acquire new customers in Japan and overseas
As a new flat-rate plan for the domestic market, the company started a plan from November 1st that eliminates the distinction between corporations and individuals and allows selection according to the usage scene and number of people. As a result, we have created an easy-to-use service environment for each application, but in order to let creators know that it is a platform for high-quality music content, we will carry out video marketing and other activities to increase awareness.
Overseas, in response to the rise in the stock music service market, similar companies are moving to raise huge amounts of funds such as tens of billions of yen, and Audiostock is a video of songs and anime games using Japanese musical instruments. Since demand for content unique to Japan, such as those that suit the needs of customers, is high, especially in Asia, we plan to offer a flat-rate plan for overseas markets in the future. Strengthen marketing to expand overseas market share.
Development costs for strengthening the Audiostock system
While Audiostock handles more than 700,000 sound sources, there are issues with the system and user opinions regarding how to meet the sound sources that users want. We are planning to strengthen the system with the aim of updating to improve user convenience, such as utilizing technologies such as AI to create a better environment. In addition, we will develop a flat-rate plan system for overseas markets.
Costs for acquiring and producing high-quality music content
The company records live performances in studios by professional players, and high-quality live music BGM is one of the popular contents, so we will expand the recording contents in the future. We are also considering selling celebrity music content, and since it is rare in the industry to actively distribute celebrity content with high entertainment value, we can deliver high-quality content that is unique to users. I will prepare.