Pan-national licensing and reporting across Europe The CRM directive aims to make it easier for creators and rights owners to move their works between CMOs in Europe, while a number of collecting societies are grouping together to streamline licensing and reporting across Europe. How should artists and rightsholders navigate multi-territory licensing and the various licensing hubs? Virginie Berger, CEO, Armonia

1. Get more value from online licensing
Music Rights Disruption:
Pan-national Licensing and reporting across Europe
Fair Music : Transparency and Payments Flows in the
Music Industry
Virginie BERGER CEO ARMONIA ONLINE

2. Get more value from online licensing
More about me
• First ever ArmoniaOnline CEO
• First pan-european hub licensing musical works for digital music services
worldwide.
• Founder of DBTH (Soundcloud, Slack, Trello, The Orchard, Twitter and Twitter
Music….): entertainment tech, streaming platforms and media
• Former marketing and content Director of Myspace for France and French-
speaking territories, involved in MySpace Music
• NRJ, Omnicom, Microsoft / MSN
• Additionally:
• Authored the book "Music and Digital Strategies" (2nd Edition Irma)
• Member of the MaMA Event Advisory Board
• Lecturer at Celsa, Sorbonne, HEC, Maine University, Fair, Berklee..
• Writes for Midem, Hypebot, Techdirt, Le point, El Pais…and my own media!
• Hosts «On refait la musique», a talk show about the creative industry and the
digital mutation on a french Radio.

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The State of Music Publishing : Where is the Money?
• Ongoing debate over the challenges of rights owner’s royalties payout
• Another issue for music creators: international performances : Time is one
major issue
• Current lack of transparency : benefit middlemen
• … And tech giants - the unfamous value gap
• Musicians are increasingly expecting more transparency and efficiency !

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Music Tech and DSP’s graveyard: Where is the Money?

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The State of Music Publishing : Where is the Money?
• Musical works are available on a large number of different platforms in
different models:
• Downloaded music
• Paid interactive or on demand models
• Ad supporting models
• Ad or subscription based models

6. Get more value from online licensing
The State of Music Publishing : Where is the Money?

7. Get more value from online licensing
The State of Music Publishing : Where is the Money?

8. Get more value from online licensing
The State of Music Publishing : Where is the Money?

9. Get more value from online licensing
The State of Music Publishing
• Faster release cycles
• Proliferating online services
• Creative licensing structures make finances and revenue even more complex
to understand and manage
• But also complexity of real time multi-territorial licensing of local and
international digital services : DSPs used to complain of having to conclude
agreements with some 25 CMOs in the EU28, holding back the launch of
services!

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The State of Music Publishing : THE INCREASING COMPLEXITY?

11. FRUSTRATION

12. MORE SONGS
MORE OPTIONS
MORE LISTENERS
WHERE IS THE MONEY ?

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Challenges Responses
CENTRALISED LICENSING HUBS = THE ANSWER ?

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What can artists/musicians, songwriters, labels expect as results from the
new centralised licensing sevices?
• Transparency, accuracy, timely processes
• Better exploitation of their works
• More revenue stream
• Restored truth with collecting societies
• New services for their activities in several territories (Armonia+)
CENTRALISED LICENSING HUBS?

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What Armonia Does Differently?
The solutions we intend to bring to address the
challenges songwriters, composers and music publishers
are facing in the digital realm.
Ensure a fair and transparent compensation for authors
in the online music industry

16. Our Promise
Simplified online music
licensing and
processing: Fair deal for
everyone

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Our Licensing Hub
• 9 societies
• 13 million musical works
• 33 territories
… For now
Armonia Online is the first pan-european hub licensing musical
works for digital music services worldwide

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Our Vision for Licensing : Front Office First
• To offer a single point of contact to DSPs for the online licensing of
Armonia repertoire. One of the member is appointed to conduct the
negotiation from the first meeting to the effective signature
• A single agreement on rates and tariffs applied in every Armonia members
territories and mandates (large number of Anglo-American and Latin
works included): members involve in the licensing decision-making
process:
• To develop market standards templates of contracts and negotiation
guidelines, to accelerate the licensing of Armonia aggregated repertoires
• To serve the interests of Armonia members and to offer full transparency
and fair governance principles to them

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Back Office ? A collaborative back office platform
Armonia has a unique collaborative back-office platform for all its members
that are willing to be part of it
Our service platform operated by BMAT picks up the best and appropriate
technologies, acting as a trusted third party and a neutral actor
Our partner BMAT is the single point of entry for DDEX reports and is entirely
handling the relations with the DSPs and the processing of Digital Sales
Reports
BMAT converts DSR into the format each society requires

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Why join?
Fair Music: Transparency and payment flows in the Music
Industry
Publishers DSPs Startups
Access to major multi
territorial licensing deals
Single point of contact for
the negotiation of multi-
territorial licensing
Simplified scheme for
small broadcasters
and startups < 20K€
Shared technology and
expertise
Single point of entry for
DDEX reports
Lonesome fees
capped
Valuation of repertoire .
Improvement of collections
Neutral and trusted third-
party (BMAT)
Less paperwork
DSR converted in a bespoke
format
Access to a repertoire of
13 million works
1 or 2 years deals
Transparent and
collaborative governance
Large amount of Anglo-
American and Latin works
Predictability
Flexible membership
options
Market standard
templates of contracts
(Virtual incubator to
come)

21. Get more value from online licensing
They are already on board with us!
We have concluded agreements with seven DSPs in total, covering 80% of the
market, with a further five in the pipeline.

22. Get more value from online licensing
What Armonia Does Differently?
From the point of view of our business partners (Publishers, DSPs)?
• Single point of contact for 9 societies – one of the member is appointed to
negotiate the license with the client
• Single and neutral point of entry for DDEX reports through BMAT to process
DSPs sales reports
• Access to a broader repertoire and for new Armonia members to get their
repertoire included in multi territorial deals where they will be more valued
and promoted than if they were “on their own”

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What’s next?
We believe licensing and processing are not enough to « get more value from
online licensing ». So more to come!
• Tools to make statistics, analytics on the markets
• Tools to track the value of exploitations, the distribution linked to the
exploitation and the invoicing
• Real-time data processing
• Data-tracking technologies
• Blockchain technology and cryptocurrencies to manage and track online
payments through value chain directly from fans to music creators
• AI / VR

24. Get more value from online licensing
What’s next?
• Education Initiative for Creators
 To ensure a greater level of information and
transparency for us as users but also for our clients
(mandate) and for our members.

25. 1.Cross the Tech Chasm
Make it easy for DSP’s to understand that Armonia makes
online music licensing and processing easier, more
accommodating : Fair deal for everyone
2.Drive Cultural Relevance
Inspire others collecting societies to rekindle their love
affair with DSP’s

26. MERCI !
(and follow us on twitter, facebook, newsletters,
blogs etc..for more to come!)