Photo: Seth Goldstein
After a tumultuous year running one of the most-hyped music startups around, Seth Goldstein is reemerging on the startup scene with a new venture, DJZ.Last summer, Goldstein and Billy Chasen had one of the buzziest new startups, Turntable.fm.
It quickly gained a lot of users and closed a $7 million round of financing.
But then something happened.
Users started visiting Turntable less frequently. Tension grew between Chasen and Goldstein. Inc. captured the startup’s struggles in a May cover story, “Turntable.fm: Where Did Our Love Go?”
The dust has settled: Goldstein’s will remain Chairman of Turntable but is no longer day-to-day at the startup; Chasen runs it full-time. Chasen has a piece of Goldstein’s new company and will serve as an advisor.
Goldstein is working with Alexis Giles, a former Googler who’s one of several DJZ cofounders. Giles worked on YouTube for Google and will be in charge of partnerships for DJZ.
DJZ, like Turntable, is a startup for DJs. But instead of letting users control the music, Goldstein’s new company will focus on curating and creating content around artists who are “the new rockstars”—Dubset, David Guetta, and Skrillex, to name a few. It will cover events like Burning Man and Electric Zoo. Goldstein envisions DJZ becoming an MTV for the digital age.
To accomplish that, Goldstein is going to need a lot of money.
He’s raised $1 million to get him started from Index Ventures; Google Ventures; Kleiner Perkins Caufield & Byers; True Ventures; Viacom vice chair Shari Redstone; and Troy Carter, Lady Gaga’s manager. Carter is the only investor who overlaps with Turntable.
DJZ, which was named by Goldstein’s 13-year-old son, will officially launch on Halloween with a mobile app and a website. It will aim to capture Generation Z—people who were born after 1992, who aren’t satisfied with just one screen, and who don’t remember a time before the Internet.
Goldstein says a DJ-focused media company is a $4 billion market opportunity, when you consider recorded content, merchandise, and concerts as potential revenue streams.
Still, Goldstein is 41, and it doesn’t seem like the kind of company a seasoned entrepreneur with two kids would start.
“Are you a secret raver?” we asked him.
Goldstein said he had attended Burning Man a couple of times, but his work at Turntable made him even more appreciative of the rising DJ culture.
“It doesn’t mean it’s my favourite kind of music; there are definitely times in the car where all I want to hear is Billy Joel,” Goldstein said. “But it’s my favourite kind of experience. It’s visceral, you feel it and all the endorphins. Through Turntable I got more exposed to it.”
To help paint a picture of the market opportunity DJZ will tap into, Goldstein showed us some of the slides from his investor pitch deck.
Here’s the problem DJZ is trying to solve (click to enlarge):
And here’s what DJZ solution will look like:
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