Universal Music Group NV has acquired a minority ownership stake in Stationhead, the social listening platform that enables users to listen together, play DJ and communicate with one another, the company said in a statement reported by Bloomberg. Financial terms of the transaction were not disclosed.
The investment forms part of Universal Music’s push to strengthen artist-fan ties and create additional revenue streams for talent on its roster. Private equity firm Sterling Partners joined Universal in the funding round.
Industry participants have increasingly emphasized fan engagement as a central lever for maintaining and growing revenue after an extended period of slower expansion. Major labels and streaming services have been experimenting with ways to reward listener attention, including offering pre-sale concert tickets and early access to unreleased tracks - features Stationhead plans to prioritize.
"We see tremendous potential in technology innovation that brings artists and their biggest fans more closely together," Michael Nash, chief digital officer at Universal Music, said in a company statement. "Collaborative, artist-centric, super fan-focused innovation like this is essential to the future of our industry."
Stationhead, which was founded in Brooklyn, New York, in 2015, provides a format where fans can host radio-like stations to share music and interact with other listeners. The platform also enables occasional direct participation from artists, allowing them to engage with their audiences in real time.
In conjunction with the financing announcement, Stationhead disclosed that it will merge with Mellomanic, a platform with a comparable focus on genre-based communities. Following the integration, the unified company will retain the Stationhead name. Mellomanic’s leader, David Rappaport, will take on the role of chief executive officer for the combined business.
Universal’s minority investment and the planned merger signal a continued industry effort to use technology and community-focused products to deepen fan loyalty and develop monetization opportunities tied to listener attention.
Company background: Stationhead founded in Brooklyn in 2015. Transaction participants include Universal Music Group and Sterling Partners. Stationhead to merge with Mellomanic; David Rappaport appointed CEO of the combined company.