In the post-Covid-19 world accessibility is more important than ever. Music technology – a sub-sector within audio technology that focuses specifically on the creation and consumption of music – has been accelerating the ease of access to all forms of the music industry for many years.

Now with the closure of many public spaces (where music is consumed) and specialist spaces (where music is created), many artists and consumers will look towards alternatives. The thriving music technology scene provides many credible options.

Since 2018, companies within the UK’s audio technology sector have seen significantly increased volumes of venture capital funding. Between 2010 and 2017 venture capital raised in the audio technology sector averaged around £65 million per year, according to data from Pitchbook. However, in 2018 this increased by 535 per cent to £415 million and totalled £266 million in 2019, thus demonstrating significant growth within the sector.

Often after receiving such investment, occupiers increase their headcount, which will likely lead to future requirements for office space from the audio technology sector in the short to medium term. In recent years, there has been a number of key funding deals to UK audio technology companies that are likely to influence future requirements for office space across the country.

Audio Network is a key company which has received this type of funding. Audio Network is a music production company that provides original, high-quality music for broadcasters, brand creators and music fans. Audio Network’s offerings include original music tracks that are pre-cleared for multiple formats, enabling broadcasters, brands, creators and music fans to get low prices and simple licensing procedures.

Audio Network was acquired by Entertainment One, aka eOne, for approximately $215 million in April 2019. The acquisition has enhanced eOne’s presence in a rapidly growing sector within music, delivering attractive growth that is complementary to eOne’s music, film, television and family brands businesses.

Music technology is not only limited to production, it is also changing how we consume, access and enjoy music. London-based start-up MelodyVR aims to transform how we enjoy live music. MelodyVR combines live music and virtual reality (VR), providing access to concerts worldwide through VR. With the use of just a phone or a VR headset users can watch live gigs from the best vantage points, in the comfort of their own home. MelodyVR was founded in 2015 and is already worth an estimated minimum of £19 million.

VR music platforms are likely to increase in popularity as many live music events have been forced to cancel or postpone due to the Covid-19 pandemic. Facebook recently claimed to have attracted over $300 million in non-advertising revenue during the first quarter of 2020 with that number being largely driven by the sale of Oculus VR (the Facebook-owned virtual reality headset) products, thereby demonstrating the rising popularity of this form of technology.

With other companies in the sector also continuing to invest and innovate, its expansion could well be music to landlords’ ears.

Further information

Contact Pearl Gillum

Contact Savills Office & Business Space