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Music Startup Academy - The Licensing Vortex Explained: How To Get Your Startup Service Rightsholder-Approved

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Need or want to use music for your app or game? The landscape to license downloads, streaming, radio, video, and games is complicated at best. This session, presented on May 12 during the Music Startup Academy held at Music Biz 2015 in Nashville, took attendees through various rights for recorded music and underlying composition, as well as where and how to obtain licenses. 7digital's Kyle Pierce moderated the session and was joined by Raoul Chatterjee, 7digital; Bryan Friedman, Rithm; and Stephen Relph, TheOverflow.

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Music Startup Academy - The Licensing Vortex Explained: How To Get Your Startup Service Rightsholder-Approved

  1. 1. The Licensing Vortex: How to get your start-up rightsholder approved Music Biz May 2015 Kyle Pierce VP, Music Partnerships, 7digital Raoul Chatterjee, SVP Music, 7digital Stephen Relph, CEO, The Overflow Bryan Friedman, COO, Rithm
  2. 2. Initial Phases of Thought • Creating a compelling product offering • Understanding which rights are implicated • What value does the offering bring to the rightsholders • How to craft a message that makes sense
  3. 3. Compelling Products • Laser focus on serving their market • Clear path to monetization • Engagement
  4. 4. Understanding Which Rights are Implicated Permanent Downloads DMCA Compliant Radio Streaming Interactive Streaming Label Publisher PROs US Licensing Grid Master Mechanical Performanc e Compulsor y Sound- Exchange ✓ ✓ ✓ ✓ ✓ ✓ License Type Direct Direct Blanket Blanket Licensed by labels
  5. 5. Understanding Which Rights are Implicated Multiple Licenses per Recording Jay-Z - Empire State of Mind Label UMG Jay-Z Alicia Keys Music Publishers Sony ATV/EMI April Sony ATV/EMI Foray Downtow n Music Pub UMPGWarner Chappell Shawn Carter Alexander Shuckburgh Angela Hunte Janet Sewell Sylvia Robinson Bert Keyes PROs ASCAP BMI SESAC Sylvia Robinson Alexander Shuckburgh Janet Sewel l Alicia Augello -Cook Bert Keyes Shawn Carter Angela Hunte Alicia Augello -Cook Information courtesy of HFA
  6. 6. Understanding Which Rights are Implicated Multiple Licenses per Recording Label UMG Jay-Z Alicia Keys Music Publishers Sony ATV/EMI April Sony ATV/EMI Foray Downtow n Music Pub UMPGWarner Chappell Shawn Carter Alexander Shuckburgh Angela Hunte Janet Sewell Sylvia Robinson Bert Keyes PROs ASCAP BMI SESAC Alexander Shuckburgh Janet Sewel l Alicia Augello -Cook Bert Keyes Shawn Carter Angela Hunte Alicia Augello -Cook Sylvia Robinson Information courtesy of HFA Jay-Z - Empire State of Mind
  7. 7. 9 Separate Licenses for 1 song Multiple Licenses per Recording Label UMG Jay-Z Alicia Keys Music Publishers Sony ATV/EMI April Sony ATV/EMI Foray Downtow n Music Pub UMPGWarner Chappell Shawn Carter Alexander Shuckburgh Angela Hunte Janet Sewell Sylvia Robinson Bert Keyes PROs ASCAP BMI SESAC Alexander Shuckburgh Janet Sewel l Alicia Augello -Cook Bert Keyes Shawn Carter Angela Hunte Alicia Augello -Cook Sylvia Robinson Information courtesy of HFA Jay-Z - Empire State of Mind
  8. 8. Licensing Challenges • Rights can affect your functionality • Existing business models can be streamlined • New business models come with added complexity • Border restrictions for services
  9. 9. Providing Value • Services that grow their business $$$ • Services that help them build audiences for their artists • Partners that help promote their priority projects • Partners to test new technology • Tools to build their capabilities • Long term partners who understand their needs
  10. 10. Practical Tips for Fruitful Licensing
  11. 11. Crafting Your Message Planning and organization – Formulate a clear strategy – Service description – Resource Presentation and messaging – Commercials – Marketing and differentiation – Organizational alignment – Projections – Timing – not less than 3 months
  12. 12. Delivering Your Message The response and counter- proposal – Facts – Intelligence & market dynamics – Fair collaboration – Delivery The contractual negotiation – Term sheets – Identifying key issues – Work allocation – Meet in person – Make careful notes Common issues – Advances and minimum
  13. 13. Outline 1) What is TheOverflow ? 2) WIIFM 3) Partnerships 4) A Framework
  14. 14. What is TheOverflow? • World’s First Limited Catalog On-Demand Subscription music service • Superserves the Christian & Gospel music fan
  15. 15. WIIFM What’s In It For Me?
  16. 16. Partnerships 1. Jointly Create Value 2. You’re Stronger Together
  17. 17. Framework 1. Background 2. State The Idea 3. Explain How it Works 4. Reinforce Your Key Benefits 5. Next Steps
  18. 18. BRYAN FRIEDMAN CO-FOUNDER & COO
  19. 19. 2 OUR KEY QUESTIONS
  20. 20. 3 Do we need licenses to use music in our app? YUP
  21. 21. 4 Ok, from whom? LABELS, PUBLISHERS & PROs
  22. 22. 5 Ok, how do we get those folks to the table? GET THEM TO TAKE YOU SERIOUSLY
  23. 23. 6 Ok, now how do we convince them to do something new? BE PASSIONATE BE PERSUASIVE BE RELENTLESS
  24. 24. 7 Ok, now how do we close these deals? DON’T LET “PERFECT” BE THE ENEMY OF “GOOD”
  25. 25. Rithm’s Music Industry Partners 8
  26. 26. THANK YOU! bryan@rithm.me www.rithm.me

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