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Content Acquisition and
Business Development

Presented by




               Supported by
                              NARM/DMO is a non-profit organization.
                              Copyrighted images used herein are for educational purposes
                              under the guidelines of the American Distance Education
                              Consortium.
CULTURE
CLASH
SO, YOU
THINK YOU
HAVE A
PRODUCT
        -   What’s the big idea?
                - What problem are you solving
                - Who are your competitors and why are
                  you better?
        -   Who will use your product?
        -   How will music be used and what rights
            do you need?
        -   What platforms and technologies can
            you leverage?
        -   Do you have a working prototype and
            white paper?
SO, YOU
THINK YOU
HAVE A
BUSINESS
        -   How will you make money?
        -   Have you modeled out the costs of your
            business to account for growth?
        -   Who are your customers?
        -   How will you distribute and market
            your business?
        -   What music rights do you need and how
            much will they cost?
        -   How does the money flow and how do you
            account to rights holders?
CATEGORIES
& BUSINESS
MODELS

        -   Content delivery & distribution
                - A la carte downloads
                - Cloud based streaming
                - Web radio services
        -   Games/Entertainment
                - Console
                - PC-based (includes social media)
        -   Mobile/Apps
        -   Productivity tools/Social media marketing
                - e.g., Root Music, Fanrank, Topspin
WHO
SHOULD I BE
NEGOTIATING
WITH?
        -   It depends on the rights you are
            looking for:
                - Record label business development
                  executives and lawyers
                - Music publishers and rights societies
                - Artists and artist managers
        -   Know who you are meeting with and
            what motivates them
STRUCTURING
THE DEAL


        -   Term – how long
        -   Territories
        -   Economics
        -   Financial commitments/thresholds
        -   Offering equity? If so, how much?

        ** Tip: It never hurts to hire a seasoned
           music lawyer!!!!
ALTERNATIVES
TO DIRECT
LICENSING

        -   Sub-license from white label content holders,
            e.g., 7 Digital, MediaNet
        -   Production Music, e.g., Pump Audio
        -   Independent artists who own their own
            recording and publishing rights
        -   Free Music Archive, archive.org,
            Creative Commons.org
        And leverage music industry sources…
        -   Trade associations: NARM, A2iAM, Merlin
        -   Events: SF Music Tech, Music Hack Day,
            Billboard music conferences, NARM,
            MIDEM, SXSW, Digital Music Forum
API’s



        - API’s (Application Programming Interface)
           are fueling creativity and growth
        - Developers “may” use music in apps built
           on API’s without seeking a separate
           license, e.g., Spotify apps
        - Labels want to harness the creativity in
           app development and some like EMI &
           IDJ are making full length music available.
        - Understanding Terms of Service when
           using API’s
        - Are there commercial opportunities?
        - When to go down this route?
IN
CONCLUSION


        -   Develop a killer product that will grab
            public and media attention
        -   Develop strategies to attract users
            and sustain engagement
        -   Have a business model for profitability
            knowing where you can be flexible and
            where you can’t
        -   Demonstrate that you can truly add to the
            rights holder’s bottom line
        -   Most importantly…Be passionate about
            your product!

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Music Startup Academy: Biz Dev Basics

  • 1. Content Acquisition and Business Development Presented by Supported by NARM/DMO is a non-profit organization. Copyrighted images used herein are for educational purposes under the guidelines of the American Distance Education Consortium.
  • 3. SO, YOU THINK YOU HAVE A PRODUCT - What’s the big idea? - What problem are you solving - Who are your competitors and why are you better? - Who will use your product? - How will music be used and what rights do you need? - What platforms and technologies can you leverage? - Do you have a working prototype and white paper?
  • 4. SO, YOU THINK YOU HAVE A BUSINESS - How will you make money? - Have you modeled out the costs of your business to account for growth? - Who are your customers? - How will you distribute and market your business? - What music rights do you need and how much will they cost? - How does the money flow and how do you account to rights holders?
  • 5. CATEGORIES & BUSINESS MODELS - Content delivery & distribution - A la carte downloads - Cloud based streaming - Web radio services - Games/Entertainment - Console - PC-based (includes social media) - Mobile/Apps - Productivity tools/Social media marketing - e.g., Root Music, Fanrank, Topspin
  • 6. WHO SHOULD I BE NEGOTIATING WITH? - It depends on the rights you are looking for: - Record label business development executives and lawyers - Music publishers and rights societies - Artists and artist managers - Know who you are meeting with and what motivates them
  • 7. STRUCTURING THE DEAL - Term – how long - Territories - Economics - Financial commitments/thresholds - Offering equity? If so, how much? ** Tip: It never hurts to hire a seasoned music lawyer!!!!
  • 8. ALTERNATIVES TO DIRECT LICENSING - Sub-license from white label content holders, e.g., 7 Digital, MediaNet - Production Music, e.g., Pump Audio - Independent artists who own their own recording and publishing rights - Free Music Archive, archive.org, Creative Commons.org And leverage music industry sources… - Trade associations: NARM, A2iAM, Merlin - Events: SF Music Tech, Music Hack Day, Billboard music conferences, NARM, MIDEM, SXSW, Digital Music Forum
  • 9. API’s - API’s (Application Programming Interface) are fueling creativity and growth - Developers “may” use music in apps built on API’s without seeking a separate license, e.g., Spotify apps - Labels want to harness the creativity in app development and some like EMI & IDJ are making full length music available. - Understanding Terms of Service when using API’s - Are there commercial opportunities? - When to go down this route?
  • 10. IN CONCLUSION - Develop a killer product that will grab public and media attention - Develop strategies to attract users and sustain engagement - Have a business model for profitability knowing where you can be flexible and where you can’t - Demonstrate that you can truly add to the rights holder’s bottom line - Most importantly…Be passionate about your product!