Abba star Bjorn invested in my start-up – now I give artists the royalties they deserve
Jennifer Sieg meets Ryan Edwards of music tech start-up Audoo to discuss how he’s managed to secure backing from some of the biggest names in the music industry
Entrepreneur Ryan Edwards can still remember the day he secured the investment that would help make the success of his start-up possible.
Soon after Edwards completed the Abbey Road Red incubator programme for his music tech start-up Audoo, Abba star Björn Ulvaeus reached out with interest.
“I don’t know how he did it, but he got my email address and he emailed me directly,” Edwards, 39, says.
An impromptu Zoom call with the musician turned out to be much more than the entrepreneur could have ever expected, because once the team received Ulvaeus’ backing, operations began to snowball.
Audoo, which uses technology to revolutionise public performance royalties, has since received investment from some of the biggest names in the music industry, including Sir Elton John and Beatles’ star Paul McCartney.
To date, the start-up has raised over $25m (£18m) and expanded its operations across 15 different countries and four continents.
“What’s been really nice is they’ve [investors] really understood the application and the need for it… it’s about making sure that the balance is correct,” Edwards says.
How does it work?
Edwards founded Audoo in 2018 after becoming increasingly curious about how musicians were paid based on their public performances.
A ‘public performance’ is when music is played to the public – whether that be in a department store or restaurant – through streams such as radio, broadcasts or digital service providers.
Edwards, who was once a 19-year-old drummer, says his wife had heard one of his band’s old songs played in a department store, and when she asked how much he got paid from it, he didn’t have much of an answer.
“Not even a fraction of a penny,” he laughs.
There was a pretty high chance that the store was playing it on a random Spotify account, meaning he actually wouldn’t get paid for the ‘public performance’ at all.
An organisation traditionally pays for a licence to stream copyrighted music, but Edwards says the way it’s recorded to accurately report how much the music is really played is outdated.
“How can I fix this from a technology perspective?,” he recalls asking himself.
“We’d seen things like Shazam, we’d seen smart speakers and the growth of that side… Can I create the next level of audio detection?”
We’d seen things like Shazam, we’d seen smart speakers and the growth of that side… Can I create the next level of audio detection?
The Audoo Audio Meter works similar to an energy metre, using its eight-speaker design to automatically capture and store real-time audio in a cloud.
Audoo partners with rights organisations, such as PRS for Music, who then pay to use the service as part of each licensing agreement.
“We’re like the opposite of an Alexa, where Alexa tries to pinpoint a voice, we take away the voice and we try to pinpoint the music in the background,” he says.
“It’s not costing the writers and the musicians, and it’s not costing the venues… it’s purely a ‘let’s get the right money to the right people,’” he adds.
The need for ‘data, data, data’
In 2023, total revenue of the recorded music industry reached $28.6bn (£21.3bn), with streaming revenues hitting $19.3bn (£14.3bn).
Global streaming numbers jumped by a third, with a total of 7.1tn song streams recorded last year, according to music data provider Luminate.
However, streaming fraud detection platform Beatdapp revealed earlier this year that at least 10 per cent of all song streams are fraudulent, which costs the global music industry between $2bn (£1.6bn) and $3bn (£2.4bn) each year.
This, Edwards says, is why Audoo’s mission to get the right money to the right people within the growing music industry is so crucial.
“Data, data, data, everybody is data hungry – so the ability to capture service and actually understand data is becoming really important,” he says.
How to stand out from the crowd
The music industry, which has grown year-on-year for nearly a decade, is a big business often dominated by major key players.
How does a music tech start-up ever discover its recipe for success in such a large market?
Fortunately, securing the support from some well-known industry names from the start helped Edwards and his team stand out from the crowd.
“I think our experience generally has been really welcoming, which, I think at times, has been a surprise. Tech definitely was not welcome in music a decade ago,” Edwards says.
I think our experience generally has been really welcoming, which, I think at times, has been a surprise. Tech definitely was not welcome in music a decade ago.
“One of the best moves we ever made is we went through the Abbey Road incubator called Abbey Road Red, which was just incredible because what we got was people who understood technology, understood the music business… but also they understood the artist’s side.”
By understanding the need for more of this kind of support, Edwards made sure to also create a board of trusted industry advisors “to help us position ourselves the right way.”
Now, Audoo’s board includes guidance from former PRS chairman Nigel Elderton, Spice Girls founder Chris Herbert, and music rights lawyer Cliff Fluet.
CV
Name: Ryan Edwards
Company: Audoo
Founded: 2018
Staff: Over 35 members globally
Title: CEO & Founder
Age: 39
Born: Stourbridge, West Midlands, UK
Lives: London, UK
Studied: Ridgewood High School, Stourbridge
Talents: Drumming, Tennis, Football (Wolves fan!) & being a Swiftie Dad!
Motto: Those who say it can’t be done should not interrupt those who are doing it
Most known for: Blink 182’s #1 fan!
First ambition: To be a drummer in a rock n roll band
Favourite book: The latest Rolex watch catalogue!
Best piece of advice: It’s better to seek forgiveness than permission