MARKET UPDATE: MONITORING & OPTIMIZATION
Streaming and digitization are driving growth in the music industry. It makes cash flows more transparent and by using technology, including Artificial Intelligence (AI), cash flows can be better monitored and audited. Now that we have finished most of the acquisitions, we are transitioning to the optimization phase. Through this update, we will keep you informed about the steps we are taking in this regard. Additionally, we will discuss relevant market developments. In this update, we provide a broader context, while future updates will delve deeper into these topics.
Nearly 60% of all music consumption is now digitally montored. This includes digital monitoring of radio and television, as well as your own streaming app that registers your listening habits. The period between this registration and the actual payout is becoming shorter. As a rule, the shorter the period, the more accurate the payout and the lower the administrative costs.
The music industry is investing heavily in monitoring software that records the actual usage of music. This software monitors specific channels, such as radio stations, for a certain period, typically one year. By utilizing these results, it can be verified whether all companies using Pythagoras music have indeed obtained a license from us. An example of a situation where this was not the case is discussed in this newsletter (see ‘Financial Update’).
The results can also be used as input in matching software that links usage and to payment. It is expected that Artificial Intelligence (AI) will also play a role in this process in the future. Systems are currently being developed and trained to verify usage and payments, we are closely involved in these developments.
All of these processes and initiatives begin with a good understanding of our own catalog. This includes knowing the rights we possess, identifying other owners, and ensuring accurate worldwide registrations. We are currently in this phase. Through software solutions, we register and verify all 36,000 rights, something that the songwriters whose rights we have acquired often haven’t done themselves.
Simultaneously, we are initiating projects to monitor music usage ourselves. We use the services of specialized software/tech companies for this purpose. If you are interested in learning more, examples of providers in this field include Utopia Music – Fair Pay for Every Play, SoundAware – Monitoring, Data and Applications for media, ARC Cloud – Audio Recognition Services For Doers, and WARM | World Airplay Radio Monitor | Real-Time Data (warmmusic.net).
Both the registration and monitoring projects are currently underway, and we will certainly keep you informed about this in future updates.