MAPPING THE DIGITAL SUPPLY CHAIN. CMUinsights.com/digitalsupplychain

Transcription

1 MAPPING THE DIGITAL SUPPLY CHAIN

2 mynameischriscooke.com

3 completemusicupdate.com

4 CMU CMU CMU NEWS & INFORMATION CMU Daily CMU Digest CMU Trends Podcast TRAINING & CONSULTANCY Seminars Masterclasses Research CMU Insights Presents EDUCATION PROGRAMMES Workshops Lectures Guides CMU:DIY Presents CMUinsights.com/bpi02

5 STARTING POINT

6 STARTING POINT: SERVICES! For independent labels, distributors are still key partners.! But the role of the distributor has changed.! And not just because they are now (principally or exclusively) distributing digital content instead of physical product.! Distributors are offering a much bigger menu of services.! And labels are being more selective about which of those services they choose to utilise.

7 STARTING POINT: DIVERSITY! There is also now more diversity in the distribution market.! In that some companies focus on specific services, while others seek to offer the full menu.! Some distributors also now work with artists as well as labels and for some, artists are their core client base.

8 STARTING POINT: CONSOLIDATION & OUTSOURCING! There has been a lot of consolidation in the distribution market.! The majors have been expanding their distribution businesses.! And just like in physical distribution, where distributors often outsourced logistics, some digital distributors outsource too, tapping into the deals and networks of other companies.

9 STARTING POINT: SEGMENTATION! So the distribution market can be segmented based on: RANGE OF SERVICES RANGE OF CLIENTS OWNERSHIP DEGREE OF OUTSOURCING

10 STARTING POINT: THE CHALLENGE! How does a label decide what distributor is right for them?! How does a label decide what services to utilise?! It can be tricky working out quite how music gets from label to digital service provider, how data and money flow back, and what other parties are involved along the way.! So: it s time to review and map the digital supply chain.

11 MAPPING THE DIGITAL SUPPLY CHAIN

12 STARTING POINT: KEY QUESTIONS 1. What do we mean by music distribution in 2018? 2. In what way is the AIM membership working with distributors? 3. How does music flow from label to digital service provider, and how does the data and money flow back?

13 MUSIC DISTRIBUTION IN 2018

14 CORE ELEMENTS DELIVERY DEAL DATA ROYALTY FLOW????

15 CORE ELEMENTS DELIVERY DEAL DATA ROYALTY FLOW Who actually connects to the DSP s server? Who actually has the deal with the DSP? Who has sight of the data? Whose bank accounts does the money flow through?

16 CORE ELEMENTS! A company may offer a simple delivery and data service.! A company may do deal, delivery, data and royalty flow.! A company may offer a choice.

17 OTHER SERVICES! Most distributors now offer other services too.! Some of these are directly linked to digital distribution.! Others go beyond distribution.

18 DISTRIBUTION ENHANCED DELIVERY DEAL DATA ROYALTY FLOW CONTENT PREP PLAYLIST PITCHING DATA PORTAL FINGER PRINTING VIDEO DELIVERY RIGHTS MANAGEMENT

19 LABEL SERVICES DELIVERY DEAL DATA ROYALTY FLOW CONTENT PREP PLAYLIST PITCHING DATA PORTAL FINGER PRINTING VIDEO DELIVERY RIGHTS MNGMT MASTERING CREATIVE MARKETING SYNC NEIGHBOURING RIGHTS PUBLISHING RIGHTS

20 WHAT EVEN IS A DISTRIBUTOR? DELIVERY DATA DELIVERY DEAL DATA FLOW DISTRIBUTION ENHANCED OTHER SERVICES

21 THE LABEL / DISTRIBUTOR DEAL SERVICE PROVISION REVENUE SHARE ADVANCE COMMITMENT

22 PICKING A DISTRIBUTOR! Artists now have more choice when picking a label partner.! Labels now have more choice when picking a distribution partner.! Which is a good news.! Though it means more decision making.! Which means: asking the right questions.! And understand the supply chain from A-Z.

23 PICKING A DISTRIBUTOR! Does your label have a direct deal with the DSP?! In many cases this may be a Merlin-negotiated deal.! If so, you only need help with delivery and data.! If not, you probably need help with deal and royalty flow too.

24 PICKING A DISTRIBUTOR! What services do you have covered in-house?! What services do you have covered with existing suppliers?! Where can a distributor add more value with extra services?! If you take all the services, where do you add value?! Are some distributors both trusted suppliers and partners, but also possible competitors in the talent market?

25 WHAT DO YOU NEED? DELIVERY DEAL DATA ROYALTY FLOW CONTENT PREP PLAYLIST PITCHING DATA PORTAL FINGER PRINTING VIDEO DELIVERY RIGHTS MNGMT MASTERING CREATIVE MARKETING SYNC NEIGHBOURING RIGHTS PUBLISHING RIGHTS

26 THE RESEARCH

27 THE SURVEY! We are today launching a survey of the AIM membership.! We want to get an understanding of the relationship between labels and their distribution partners.! How do labels choose partners and services?! What are the pros and cons of different approaches?! How do you get the most out of your distributor?

28 THE MAPPING! Concurrent to that, we are starting to map the digital supply chain identifying the flow of content, data and money.! How many links are there in the chain between label and DSP?! What value is added at each point?! Are there inefficiencies in the chain?! How can we ensure transparency throughout the supply chain from DSP through to label to artist?

29 THE END any questions?

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