RARE Entity Acquires Strategic Stake in Simon Cowell-Backed Lounges.tv

Why It Matters

The deal underscores growing venture interest in creator‑owned livestream ecosystems that can bypass traditional ticketing and ad‑driven models. It could accelerate revenue diversification for artists while giving fans more affordable access to live events.

Key Takeaways

• RARE Entity acquires strategic stake in Lounges.tv, no price disclosed
• Platform offers creators 80% of streaming revenue, payouts within 24 hours
• Partnership targets premium livestreams, direct‑to‑fan monetisation tools
• Simon Cowell previously invested, valuing Lounges.tv at £20 M ($24 M)
• RARE Entity aims to boost creator ownership and global audience reach

Pulse Analysis

Livestreaming has moved from a niche broadcast tool to a core revenue channel for musicians and entertainers. Platforms that prioritize creator control—by returning a high percentage of income and guaranteeing rapid payouts—are attracting both talent and investors. Lounges.tv exemplifies this shift, offering pay‑per‑view, subscription and tipping options while keeping 80% of the revenue on the artist’s side, a stark contrast to the 10‑15% splits typical of legacy services. Its fast‑track payment model also addresses a long‑standing pain point for performers who often wait weeks for royalties. This model also appeals to brands seeking sponsorship opportunities within live digital venues.

RARE Entity’s entry brings a seasoned music‑industry figure and a venture team with operational expertise to Lounges.tv’s growth plan. Co‑founder Dave Stewart, whose catalog has generated over 100 million album sales, adds credibility and a network that spans music, television and tech. The strategic stake, though undisclosed, aligns with Simon Cowell’s earlier investment that valued the London‑based startup at roughly £20 million ($24 million). Together, the partners intend to roll out premium live experiences, experiment with creator‑led formats, and expand the platform’s global footprint. The partnership will also leverage data analytics to personalize fan experiences and optimize pricing.

For the broader creator economy, the collaboration signals a maturation of the live‑stream market, where investors are betting on direct‑to‑fan monetisation as a sustainable alternative to inflated ticket prices and limited venue capacity. If Lounges.tv can scale its 80% revenue share and 24‑hour payout promise, it may pressure traditional ticketing agencies to rethink fee structures and inspire competing services to improve creator terms. Artists stand to benefit from diversified income streams, while fans gain more affordable, on‑demand access to concerts, comedy shows and niche cultural events.

Deal Summary

Venture group RARE Entity, co‑founded by musician Dave Stewart, announced on June 10 that it has acquired a strategic stake in livestreaming platform Lounges.tv, which is backed by Simon Cowell. Financial terms were not disclosed. The partnership aims to expand live entertainment access and provide creators with new monetisation tools.