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UPF-IDEC considers the music business models of Epidemic Sound and Konga Music


The production music business, licensing music content to audiovisual producers, is being shaken up by the apparition of another Swedish company that, just like Spotify in its day, is proposing a business model that threatens to disrupt relationships with composers, and calls the role of management organisation into question. Epidemic Sound is a young company that has taken over 50% of the market in its home country in record time, and has even managed to penetrate the US market.


What is so innovative and attractive about Epidemic Sound? David Loscos, director of the Postgraduate Course in Company Management in the Music Industry at UPF-IDEC. “Epidemic Sound does three things that, just a short time ago, seemed inviable.” 

1. Proposes a unique remuneration model through which the company purchases in one transaction, and forever, all exploitation rights to the work. That is, it buys the recording and the composition.

2. Provides a flat-rate subscription model that entitles the user to use any work in the catalogue.

3. Crucially, the user does not have to pay the management bodies for use of the songs because none of the tracks or composers are registered with any collective rights management body.

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