Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Apple Inc.    AAPL

APPLE INC.

(AAPL)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Swedish start-up Epidemic Sound tunes into demand for original music

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/06/2019 | 11:01am EST
Epidemic Sound CEO Oscar Hoglund poses at firm's new office in Stockholm

Epidemic Sound, backed by Spotify's investors, is one of a new wave of music companies expanding rapidly on the back of demand for easy access to original music from commercial users, especially YouTubers.

The global market for digital content creation, a rapidly expanding part of the entertainment industry and the quickest growing part of Epidemic's business, is valued at nearly $11 billion and is expected to grow around 17% a year until 2025, according to market research firm Kenneth Research.

Sweden's Epidemic managed to double its revenue last year to 234 million Swedish crowns ($24 million), as it muscles into the same market as traditional record labels, such as Universal, which hold copyrights and charges royalties, while also competing with tech giants like Apple which recently launched a music for business service.

Epidemic has a royalty free business model, making up-front payments for each track bought from musicians. It splits all music streaming revenue from a track 50/50 with composers and retains the exclusive rights to the songs in its library.

Its main competitors include production music company Audio Network, owned by Canada's Entertainment One, whose subscribers get access to over 150,000 wholly-owned tracks for videos, TV and radio productions, and MusicBed, which licenses music to video creators.

GROWING EPIDEMIC

Epidemic has just appointed former Google and Spotify director Kate Vale to head its North Americanexpansion, and is opening an office in South Korea and has its eye on the Spanish-language music scene in South America too, its CEO and co-founder Oscar Hoglund said.

"We're seeing this massive macro-drive where the internet is turning all into video and that underlying force is driving our entire business," Hoglund said, at the firm's new, second office, part of a buzzing tech scene in the heart of Stockholm.

"The gig economy and e-commerce also drive us a lot.Everyone can become an entrepreneur now. They need access to music," Hoglund said, adding that competition from e-commerce is also making music increasingly important for traditional shops and restaurants trying to stand out.

Although loss-making, Epidemic Sound was valued at $370 million in a fundraising in July, according to a source. It is adding tens of thousands of new customers and hundreds of tracks every month.

Among its top sellers are Sarah the Illstrumentalist's hip-hop music, which features on U.S actor Will Smith's YouTube channel, while Johannes Bornlof's "Reminiscene" is one of its most popular classical tracks.

Hoglund said he expects to keep doubling sales, while profitability must wait. "We have a strong focus on profitability but we're investing a lot in our growth right now so on a company level we're purposefully not profitable," he said.

Private equity firm EQT owns a 40% stake in the company while employees and the founders have another 40% and Spotify-backer Creandum has 20%. It made a loss of 67 million crowns last year.

"We believe Epidemic will continue to be positioned as oneof Europe's fastest growing tech companies and are excited to bepart of this journey," EQT partner Victor Englesson said.

By Helena Soderpalm

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET 0.02% 1480.989 Delayed Quote.10.46%
APPLE INC. -0.28% 317.847 Delayed Quote.8.54%
ENTERTAINMENT ONE LTD. 0.00% 557 Delayed Quote.0.00%
EQT AB (PUBL) 0.36% 126.75 Delayed Quote.14.55%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on APPLE INC.
09:57aDixons Carphone gets wrong number in Christmas trading update
RE
09:29aWALL STREET STOCK EXCHANGE : France and the U.S. bury the hatchet
08:20aMacron and Trump declare truce in digital tax dispute
RE
07:19aEXCLUSIVE : Apple dropped plan for encrypting backups after FBI complained - sou..
RE
06:19aINTEL : Apple lawsuit tests if an employee can plan rival startup while on payro..
RE
04:12aTalks on tech tax with U.S. still difficult - France's Le Maire
RE
02:48aELON MUSK : Surge in Tesla's Stock Price Fans a Fiery Investor Debate -- WSJ
DJ
01/20Apple Assembler Pegatron to Set Up Production Facilities in Vietnam, Bloomber..
DJ
01/20ELON MUSK : The Investor Clash Behind Tesla's Surge Toward $100 Billion in Marke..
DJ
01/20TIM COOK : Apple's Cook says global corporate tax system must be overhauled
RE
More news
Financials (USD)
Sales 2020 277 B
EBIT 2020 67 110 M
Net income 2020 57 021 M
Finance 2020 91 199 M
Yield 2020 1,00%
P/E ratio 2020 24,3x
P/E ratio 2021 21,2x
EV / Sales2020 4,72x
EV / Sales2021 4,38x
Capitalization 1 397 B
Chart APPLE INC.
Duration : Period :
Apple Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends APPLE INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 46
Average target price 292,67  $
Last Close Price 318,73  $
Spread / Highest target 17,7%
Spread / Average Target -8,18%
Spread / Lowest Target -52,9%
EPS Revisions
Managers
NameTitle
Timothy Donald Cook Chief Executive Officer & Director
Arthur D. Levinson Chairman
Jeffrey E. Williams Chief Operating Officer
Luca Maestri Chief Financial Officer & Senior Vice President
Kevin M. Lynch Vice President-Technology
Sector and Competitors
1st jan.Capitalization (M$)
APPLE INC.8.54%1 397 321
SAMSUNG ELECTRONICS CO LTD--.--%358 250
XIAOMI CORP--.--%40 855
WINGTECH TECHNOLOGY CO.,LTD18.92%19 807
FITBIT, INC.1.67%1 752
MERRY ELECTRONICS CO LTD--.--%1 143