Beacon Music Group, a music rental and sharing company, has announced its intention to expand into the music rental market with a $1 billion plan to launch a nationwide music rental network.
Beacon Music is aiming to become one of the first large music rental companies to scale up in a global music industry, according to the company’s CEO, Mike Cusak.
Beacon currently has more than 200,000 active users in the United States and Canada, with a goal to reach 100 million by 2020.
The company has already raised $1.3 billion in Series A funding from investors including the likes of Andreessen Horowitz, Kleiner Perkins, and the Carlyle Group.
“We are very excited to have our first major investors join our team,” said Cusaka.
“Beneath the stars and in the heart of the Midwest, we are looking forward to being at the forefront of music discovery.”
Beacon will focus on offering its services to local artists and labels, with the aim of helping artists find new audiences and fans.
Its first service, Beacon Music Radio, will launch on January 24.
Beacon hopes to build out its service by introducing a variety of other features, including in-app purchase, an in-store pickup, and access to Beacon’s exclusive music catalog, including tracks and artists.
“Our first service will be a service that is designed to help local artists find fans and fans find artists, and then to help artists discover their fans and artists,” said Brian Tinsley, the company CEO.
“By the end of the year, we will be able to expand our service and we’ll have a global platform, which will allow us to deliver more of our music, music and artists to more people.”
Beacon’s first service is aimed at helping local artists locate new fans.
Cusack said that with Beacon Music, artists can start with one of Beacon’s music libraries and then use it to find new fans, as well as provide them with personalized music recommendations, which can be customized to match the artist’s tastes.
Beacon has a unique approach to the music industry because it’s not owned by a music labels or record labels, but by Beacon Music users, according Cusakh.
Users will create their own profiles on the app, and Beacon Music will provide them a unique user ID and an email address that they can share with other users.
“The idea is to make it easy for artists to find fans,” said Tinsie.
“This way, they can use Beacon Music to find their fans, which in turn, can lead to a great amount of exposure for the artist and the band.”
Beacon Music’s in-house team is set to launch Beacon MusicRadio on January 23, which allows users to stream their music, search for their favorite artists, discover new artists and songs, and share them on Beacon’s app.
“It’s really a great example of what we’re trying to do, to make sure that artists can get their music out there in a way that makes it available to the public,” said David DeSantis, the CEO of Beacon Music.
“In the music business, there’s a huge amount of data, and we want to make a difference by providing it to artists so they can reach their fans.”
Beacon is the latest company to seek out a streaming service to take advantage of the explosion in mobile music streaming.
Last year, Spotify launched a music streaming service in China, where it’s currently in the process of expanding its business to the United Kingdom.
Spotify has also launched a premium music streaming platform, Pandora, in the U.K. Earlier this year, it launched a mobile music service in the US, which has already had a large hit with artists such as Miley Cyrus and Lady Gaga.
Earlier in February, Spotify said that it would be launching a global service in 2018.
CUSAK said that Beacon Music has the potential to grow into a larger music streaming business because it has an easy-to-use interface, has high user engagement and is available to more artists than any other music streaming app.
According to Cusakis, Beacon will also offer a premium feature in-game purchases, allowing users to get discounts on music purchases and other in-depth content.
The music streaming and music subscription services will operate independently of the Beacon Music service.
“There’s a lot of potential in this space,” said Sallie Baliunas, chief executive of Music Box, which provides a mobile app to help users buy, stream and share music.
“What we want artists to be able access is access to the full catalogue, to find artists they’re interested in and to be given the ability to get their fans to see their music on the platform.”
Baliuns Music Box app is currently available in more than 90 countries and has already generated over $1 million in sales.
Beacon music rental will be the first in-person music rental on the market, according Tinslee