Dave Stewart venture group takes stake in Simon Cowell-backed Lounges.tv

This partnership highlights the shifting power dynamics in the creator economy where direct-to-fan monetization is prioritized over ad-revenue sharing. By providing near-instant liquidation of streaming earnings, Lounges.tv addresses a major pain point in the music and live entertainment industries. Within the broader streaming ecosystem, this trend forces incumbent platforms to reconsider their payout schedules and revenue splits to retain top-tier talent. As live event pricing becomes a barrier to entry for fans, watch for whether these decentralized livestreaming models can capture a meaningful share of the premium live-content market or remain niche alternatives to stadium tours.

The strategic move by RARE Entity occurs as the livestreaming market undergoes a critical pivot toward specialized, high-margin platforms. Per Music Business Worldwide (April 2026), several competing creator-centric platforms have struggled to maintain 100% independent infrastructure, often relying on major cloud providers like AWS or Google Cloud, which can eat into the very margins Lounges.tv promises to protect. The 2023 valuation of £20 million reported by The Times reflects a growing investor appetite for platforms that merge social engagement with transactional video-on-demand (TVOD) capabilities.

Dave Stewart’s launch of RARE Entity in January 2026 signals a broader trend of legacy artists evolving into venture capitalists to reclaim control over IP and distribution. This follows a period of massive catalog sell-offs, including Stewart’s own deal with Hipgnosis in 2019. According to a Forbes report in February 2026, artist-led venture funds are increasingly targeting tech startups that offer blockchain-verified ownership or rapid payout systems. By integrating Stewart’s creative pedigree with the operational experience of Dominic Joseph and Rich Britton, RARE Entity is positioning itself to capitalize on the fragmentation of traditional media gatekeepers.

Simultaneously, the live streaming sector is facing pressure from the resurgence of physical tours. Billboard reported in May 2026 that while live performance revenue reached record highs, the 'middle class' of artists is increasingly squeezed by venue costs and promoter fees. This economic reality makes the Lounges.tv proposition of 80% revenue retention particularly attractive for mid-tier performers who can leverage global digital audiences without the overhead of physical logistics. The involvement of Ben Lavender, the creator of BBC iPlayer, suggests that the platform's technical roadmap is focused on broadcast-quality reliability, a necessity for competing with established giants like YouTube Live or Twitch.