Interview: INgrooves CEO Robb McDaniels On Acquisitions, Tunecore & The ONE Digital Platform
After the announcement that digital music distributor INgrooves had received a "significant" investment from Shamrock and extend its UMG partnership, I asked founder and CEO Robb McDaniels to share his plans in the face of increased competition from Tuncore and others.
The announcement stated that some funds will be used to “make strategic acquisitions”. What kind of companies you are interested in?"On the music side, we are looking at content aggregators and distributors with a particular focus on international repertoire. We will also be looking at a variety of technology companies that facilitate digital distribution and marketing of eBooks and music through applications and other innovative methods."
Tunecore and others are gaining users with a flat fee model and which encourage both the commoditization of digital music distribution and downward price pressure. How do you compete against Tunecore?
"Companies like Tunecore provide a wonderful service for unsigned bands that are interested in making their content available in a few select online storefronts. We are not opposed to a flat fee model for delivery of content only, in fact, we provide companies like Tunecore access to our ONE Digital platform to manage the delivery and administration of their content. ReverbNation is one example of a ONE Digital client utilizing the platform in this manner."
"Despite the potential cost efficiencies of the flat fee model, however, we have found that most independent labels and successful indie artists benefit from an expansive online and mobile distribution network, customized sales and marketing support, and dedicated product support to ensure that their art is properly represented in the digital world."
Can you explain the ONE Digital platform and share what functionality you will be adding with the new investment?
"The ONE Digital platform is our proprietary software platform that largely automates all media distribution and administrative functions on behalf of content owners. We continue to invest in improving the cost efficiency and flexibility of ONE Digital to help our partners to adapt to the dynamic online and mobile marketplace."
"This includes the ability to deliver content and update metadata and pricing at the click of a button to provide our clients with unparalleled transparency into each step of their digital supply chain and facilitate effective marketing and promotional campaigns to help maximize global sales."
What was the size of Shamrock’s investment?
"While we are not disclosing the financial terms of the investment, we now have a significant opportunity to pursue our growth strategy in the music and eBook sector, which may include acquiring companies that own or control digital rights to content."