One Venture Capitalist’s message for music tech startups: The next industry boom, is yours. Exec director Devin Gibson gives prediction
From the small leagues to allstars, the story of little businesses blooming to billion dollar industry powerhouses are taking 2016 center stage. What 9 out of 12 of them have in common is one word, tech. With incredible runners like Spotify and Uber leading the pack, its clear that the name of the game is revolutionizing convenience. One venture capitalist has his eyes set even deeper into the niche, Devin Gibson first revealed at CES 2016 that music tech will trump it all by creating ventures that consumers are “hungry” for. In an exclusive interview Gibson stuck to his guns saying “forecasts are in an escalating trend for tech startups who merge with the creative experience.” Some moves highlighting Gibson’s prediction, as reported by The Digital Journal, were deals between apple and beats, Shazam and Office Depot’s Mood Media solution, and Spotify with practically everyone else.
When asked about which startups Gibson will stand behind, the music executive’s answer was less than direct stating “Without giving names, by far, the best routes to look into would be virtual reality, practical consumer solutions, ANY new music tech that aims to make experiences which either stimulate the consumer or solve their problems.” Gibson’s critical views and history with industry partners UMG (Universal) and Sony did not seem to influence his stance, despite the value of the music industry itself struggling to stabilize. The controversial director, brand adviser, and now investor in the industry, notes “Do not be fooled by current numbers, music is one of the oldest and precious resources in human history, any fluctuation in the market merely represent a change in direction, not failure. In this case, the industry is changing their delivery according to a change in a neighboring industry.
It is a fantastic opportunity for those that can see the direction it’s heading now, I’ll finance 3 million for a consumer targeted Spotify/Periscope merger or any startup similar in strategy. There are countless of others to name. The last window for artists and startups like this was when the FCC (Federal Communications Commission) opened up registration of full power FM radio licenses for free in 2007, no one had been able to get a station slot for over ten years prior to that. Tech advancements have changed the way things work for so many industries since then, as a result, startups and major mergers will be the only solution to address the rapid demand now.” Gibson’s 3 million dollar startup preposition is not far from reasonable given that live streaming competitor Ustream was recently purchased by IBM for $130 million, only a year after Amazon dropped a whopping $970 million for video game streaming site Twitch.
The FCC’s alluring radio opportunity itself closed it’s doors for aspiring applicants after a mere 7 days, nonetheless Gibson’s optimistic music tech window remains open for opportunity, and we have only yet to see what it will bring.