Insights

Our Investment in Duetti

March 07, 2024
by: Cohen Circle Team

Music catalogs have drawn considerable interest from institutional investors as an emerging asset class that is both uncorrelated to the macroenvironment and generates stable cash yield.  An active market has emerged, allowing well-known artists (or their estates) to partner with large asset managers to monetize their prized catalogues. On the other hand, independent and lesser-known artists have largely remained on the sidelines, without a mechanism to monetize their current and future IP and achieve career and financial aspirations. Other financing alternatives are fraught with potential pitfalls -- record labels remain both highly selective and can often exercise significant control over an artist’s creative process and career. 

Enter Duetti. Duetti is a data-driven technology platform that provides access to catalog monetization for artists at all stages of their careers and helps them reach the next step of their journey, with a keen focus on independent and mid-market artists. Duetti utilizes a scalable data-centric approach to analyze consumption patterns and decay curves and hone in on the potential of a given track to generate reliable financial returns. 

Duetti’s founders, Lior Tibon and Christopher Nolte, have been successful builders and operators in the music industry, including through Lior’s role as former COO of TIDAL and Christopher’s experience as senior executive at Apple Music and TIDAL. Through these experiences, they had a front row seat to the music industry’s transformation and have developed understanding of its complex ecosystem comprised of artists, record labels, publishers, and platforms.  Perhaps most importantly, Lior and Chris observed that the transactional nature of the industry was lacking empathy for the artist, which they have sought to remedy by establishing an ethos of trust and transparency at Duetti, enabling them to guide artists through what is a highly vulnerable and personal process.  

The inspiration for Duetti became apparent to Lior during his time at TIDAL.  After studying the process for high-profile IP acquisitions, Lior realized that forecasting the success of independent artists was substantially similar -- these independent artists boasted millions of annual streams and hundreds of thousands of unique listeners and outcomes could accordingly be predicted through statistical analysis and curve modeling. In addition to its cutting-edge modeling capabilities, Duetti has developed a robust post-acquisition track optimization platform, which is a crucially underutilized element within the industry. This process, facilitated by data-driven management, involves strategically positioning Duetti tracks in promoted playlists and utilizing social media channels for enhanced visibility. 

From an addressable market perspective, the advent of streaming in the 21st century has catalyzed considerable growth in the independent segment as more and more artists can reach a substantial audience. Duetti estimates that its target segment is comprised of 90,000 artists that represent over $5 billion in annual streaming revenue.  

In just one year from its conception, Duetti  has partnered with over 250 individual artists, including Olivia O’Brien, Sevyn Streeter and Łaszewo, demonstrating its value proposition for artists and illustrating the scalability of its business model.  

Duetti thus addresses a critical gap in the music industry and is precisely the type of the company and founding team that Cohen Circle has always been excited to support – those which are harnessing disruptive technology to fill a “negative space” and redefine an industry or asset class. 

Visit the Duetti website for more information.

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