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? Worlds First Limited Catalog On-Demand Subscription music service Superserves the Christian & Gospel music fan
15. 15. WIIFM Whats In It For Me?
16. 16. Partnerships 1. Jointly Create Value 2. Youre 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? DONT LET PERFECT BE THE ENEMY OF GOOD
25. 25. Rithms Music Industry Partners 8
26. 26. THANK YOU! bryan@rithm.me www.rithm.me