There’s an article that will be appearing in the May 7th, edition of Forbes Magazine that caught my eye. The article is about Robb McDaniels, the C.E.O. and Founder of INgrooves. I want to share some of that article with you:
INgrooves: Proof You Can Make Money On Music, Even If You’re Not Apple
Robb McDaniels, 37-year-old founder and CEO of digital music distributor INgrooves… Sporting a lightly rumpled button-down … sips his coffee at an outdoor table—
…A decade ago he launched INgrooves out of his spare bedroom. Since then he’s raised over $50 million in capital and built a staff of 140, becoming one of the world’s largest distributors of digital music. INgrooves is home to acts from Mac Miller to Dolly Parton and small labels like X5 but also handles distribution for Universal Music Group, the world’s largest record company.
…His premise is pretty simple. An artist or label sends INgrooves a digital recording; the file is entered into a system, automatically converted into the proper format and pushed out to iTunes, Amazon.com, Spotify and 600 other online and mobile retailers. When someone buys the MP3 or streams the song, the artist’s royalties get passed along to INgrooves, which pools them from the different sources and cuts the artist a check. McDaniels charges retailers nothing; INgrooves takes 10% to 30% of the wholesale price (a typical album retails for $10 and wholesales for $7)
(Read the original full length article by Zack O’Malley Greenburg here)