Beats Music raises $60-million funding round

dollar sign cufflinkMoney is pouring into online audio.

Recently-launched Beats Music has completed a new funding round totaling at least $60-million. (The exact amount is undisclosed.) A coalition of at least four venture capitalists is behind the investment, including previous investors who are increasing their stake in the subscription music company.

Beats Music launched in January (RAIN review here), and marketed the brand new service with a Super Bowl ad starring Ellen DeGeneres. The Infinite Dial 2014 research study found that nine percent of respondents were aware of Beats Music, even though the service launched after the survey began.

News of this investment comes in the wake of Beats competitor Spotify acquiring a $200-million line of credit, and acquiring music-data leader The Echo Nest for a reported $100-million. In November, Spotify closed a private funding round of $200-million, bringing its total venture investments to $538-million. Spotify, which launched in Europe in 2008 and expanded to the U.S. market in 2011, is a direct competitor to Beats Music. Both offer on-demand access to a large catalog of streaming music; Spotify provides free listening in addition to a subscription package, while Beats is subscription-only. It is widely speculated that Spotify is ramping up for a public stock offering.

Even traditional radio is benefiting from the current investment mood: New York Public Radio accepted a $10-million donation this week from a foundation which has contributed million in the past — but that gift is earmarked entirely for non-broadcast development of online products and WNYC’s live-event venue in Manhattan. (RAIN coverage here.)

 

Brad Hill