Whether you like it or not, the video turned out to be the most attractive of all the media on the Internet, and today the company from Israel is called Artlist – which provides free libraries of music, sound effects, and even video itself to improve video content – announces a significant increase of $ 48 million, both to continue its expansion and to create more advanced technology that will help users find the perfect clip,
Funding underway KKR, also featuring Elephant Partners, a venture capital firm in Boston that also supported Allbirds, Scopely and Keelvar among others. This is the first funding Artlist has ever announced, although Elephant previously supported it with a previously unknown amount. Ira Belsky, co-CEO of Artlist, who co-founded the company with Itzik Elbaz and Eyal Raz and started as the director himself, said that the company was mainly launched since its foundation in 2016. She does not disclose the total amount raised to date, nor his assessment, except to say that he is on the rise.
“We have received 100% positive cash flow since our inception,” he said. “We just want to accelerate growth, because it is possible to serve a wider audience.”
The market gap that Artlist closes is a byproduct of how the Internet is used and developed. According to a recent report Sandvinevideo accounts for slightly less than 58% of online traffic worldwide, with video, social networks and games (the latter two being also very busy videos) together account for about 80% of the traffic. This suggests that a huge amount of content is becoming available not only from first-class media services such as Netflix or Disney, but also for a wide range of user-generated content on channels such as YouTube, TikTok, Facebook and Twitter.
While some of them can create their own audio and video content, most of which is to speed up production and focus on any aspect of their work, which they can better individualize and control, many creators turn to stocks of audio and video in their work .
Indeed, in the same space there are a number of others, including such as Getty, Epidemic Sound, Shutterstock, Artgrid, the platforms themselves and many others, but Belsky said that at one time, as a director, he discovered that many of these were not quite what he was looking for for himself, in terms of connecting it with the right music, which he was looking for, which was part of the impulse for creating Artlist.
Interestingly, Covid-19 had a double impact on this market. Belsky notes that not only has there been a significant increase in the use of online video, as more and more people spend time at home and stay away from public places, but from the point of view of the authors, many of them found it more difficult to shoot certain types of videos. or collaborate with people to create music and other sound effects, which has led to increased use of platforms such as Artlist.
The free Artlist model means that people pay an Artlist subscription to use its platform – prices range from $ 149 to $ 599 a year, depending on use and whether you take music, video, sound effects or combined plans – but more nothing for individual clips. On the other side of the market, the company does not disclose how much its artists earn on the service, but the main model is that it varies depending on how often the track is used, and in general they are very competitive. “Our artists are doing more from us than from other platforms,” said Belsky. According to him, there are no plans to change this business model, which provides for royalty-free and direct sales of exclusive rights.
Only on a gratuitous basis, financing comes from the significant growth of the company over the past couple of years, and both users and the volume of content are on exponential growth curves, respectively, they currently amount to 1.1 million subscribers and 25.8 million units of content (in mostly music at the moment, said Belsky).
While many users will include one kind of multimedia, video or music, in a larger video project such as this Mercedes Benz Advertising which uses Artlist audio – others are looking for how creative they can be, relying on both, which speaks of how we can see that video continues to evolve as the market grows, and more video content still appears:
This brings us to the next steps of the company. Belsky said that although various taxonomies already exist today to find the right piece of content, the plan is to make this process more intuitive. Being based in Israel, the company attracts some interesting talents in the field of data science, and the country is well known for creating some of the most interesting startups using AI, and all this also contributes to the development of Artlist.
“We want to invest in AI for personalization,” he said. “We see ourselves in a creative technological space, in a combination of content and technology. The goal is to find the best piece of music, as well as the best user experience when searching for it, to make it fast and intuitive. ”
According to him, in one experiment, people downloaded examples of what they like, and Artlist is looking for “matches” in its own directory, and there are others. (Indeed, given what we saw with advances in semantic search, there is a potentially very interesting opportunity to start exploring how, for example, to swallow a video clip to try to match the mood of an audio fragment with it, which is not what the company is studying today, but may be a prospectus.)
Meanwhile, given the Artlist craving and revenue growth, the opportunities and needs of the creators are interesting enough today to make this bid interesting, despite fierce competition.
“The growth of digital content creation – and the evolving way to consume it – has created tremendous opportunities for authors, but the process of licensing digital resources remains a serious problem for both small and large authors,” Patrick Devine said. , a member of the KKR Next Generation Technology Growth investment team, in a statement. “What impresses us most about Artlist is the desire of the management team to help creators focus on what they do best and eliminate friction in the search and access to content.”