LOS ANGELES – 2020 has been a whirlwind in the entertainment sector. The music and live entertainment industry have suffered the most with many artists and professional staff being laid off.
Even though the year started with new licensing deals being finalized between several popular social networking apps and music companies, by the middle of the year, in Q2 the lockdown has hurt all major record labels with revenue falling to a year low. However digital streaming increased.
DJ Jesse Neo and Milana Leybovich, both who have accumulated more than 20 years in the music industry working with brands such as Disney and Fox, saw this as opportunity to change the dynamics of how the industry works with their new venture, Gemtracks Beats.
“Gemtracks is a marketplace for the music industry,” said Jesse Neo, one of the founders of the new music tech start-up. “We wanted to create a platform where artists could access all the things a traditional record label would, such as producers to create instrumental tracks, writers to compose lyrics, and even get exclusive access to recording studios within the same package.”
“The pandemic opened our eyes to realize the internet is the future,” co-founder, Milana Leybovich, said in a statement. “Artists worldwide have become more tech savvy and realized they could do everything a record label could do thanks to new innovation in technology.”
Gemtracks allows music producers to sell their instrumental beats for a one-time fee and give away the rights of their work in the process. This is beneficial for the artists who won’t need to worry about paying royalties. This also guarantees a higher payment to the producer. Many artists and DJs have already seen growth using the platform. Based on current trend, this is expected to continue into 2021.
This is at the time when progress has also been seen by music distribution companies – which are popular among independent artists. Many music streaming services have also embraced this new wave by including complimentary contents such as lyrics, “behind the music” and “looping image cover art” not only from traditional record labels, but indie artists.
For many budding musicians, this means they no longer need to rely on traditional record labels to get a chance be in the music industry. With just a few hundred dollars, they can get industry-standard tracks, international marketing services and distributions all from Gemtracks.
“This is a very historical moment in history,” Jesse Neo said.
Gemtracks is expected to go public in 2021.