This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Rights, Royalties and Revenue

Rights & Royalties Assurance

Platforms and technologies that allow content to be consumed when and where people choose continue to add more and more complexity to the already challenging management of intellectual rights. The industry often relies on manual systems using multiple Excel spreadsheets and Access databases to record contracts and usage. In order to ensure correct payment or collection of royalties is possible, it is necessary to review existing data and rationalise the processes around collection and cost reduction.

Why is it an issue?

  • Digital content service providers seeking to sell content to end consumers face a complicated data challenge in identifying who owns the rights to music, television and film, not only within a territory but across the world. The myriad of territory based rights organisations and the desire to sell archives and out of print content which is often orphaned, makes getting permission, paying the correct entities and expansion of services very challenging.
  • Rights are recorded differently by producers, distributors and broadcasters, and to further complicate issues, rights are often stored differently within an organisation. This means there are often errors and high processing costs when calculating payments or selling rights.
  • The true value of an archive is often unknown and although potentially lucrative, content remains locked away, without the resource to identify, value and clear it for multi-platform exploitation.
  • The EU has already started creating legislation on the management of Pan European rights.

Service overview

  • Deloitte utilises deep experience in data management and data analysis to implement solutions that consolidate siloed records into a single consolidated view. These records are built using data quality and data matching best practice for completeness and accuracy for reporting on ownership and usage as well as analysis to identify risks, losses, errors and opportunities
  • We can assess the rights value chain and design a technology architecture, along with the appropriate organisational governance and processes, to effectively manage clients needs.
  • We can also undertake retrospective analytical reviews in order to address concerns with regard to processing or royalty collection

Back

Copyright Protection Services

Copyright protection is an issue that primarily threatens the creative industries of media and software however legislation such as the Digital Economy Act and pressure from rights holders is placing more and more responsibility on the telecoms & technology sectors in finding a solution.

Why is it an issue?

Losses due to copyright infringements are significant for media firms, with more and more of this liability being shifted onto telecoms and technology firms providing the infrastructure on which piracy is enabled. Figures suggest that:

  • 95% of music downloads are unauthorised (Guardian, 2009)
  • In 2011 it is estimated that €19 Billion will be lost in retail of creative content in EU27 countries (Tera Consultants, 2010)

Service overview

Deloitte is able to assist clients to protect from copyright infringement risk through the following:

  • Provision of advice on regulatory restrictions surrounding copyright protection to ensure compliance and avoid unintentional infringement
  • Post breach or legal request forensic investigation, including:
    • tracking infringements using specialist computer forensic tools
    • investigating connections between repeat offenders
    • quantifying the financial and economic impact of infringements and providing analytical support to help companies negotiate settlements

Back

Performer Life Analytics

The revenue generation challenges facing artistic management are much publicised. Reduced margins from online music and piracy has had an impact on revenue performance. In the UK, BPI figures show that although singles sales grew 32% in 2009, 98% were lower margin digital downloads. In addition unlicensed sharing and copying online was estimated in 2009 at £200 million in lost revenue.

A management company, unlike an artist, has the scale to cost effectively aggregate data from all revenue and promotion activities to create a single view of Artist (SVoA). The SVoA can be interrogated to reveal which activities by the artist or surrounding the artist result in what movements in revenue.

Understanding the promotion and marketing variables that best correlate with positive revenue for each individual artist allows management to best set the marketing and promotion mix required to maximise profits.

Why is it an issue?

  • Identifying the same artist or the song across the channels is not a simple case of text matching names. Language variations, spelling errors and different ways of writing names or song titles means that an algorithmic matching approach is required
  • New technology makes it easier for artists to create and promote their own work without the assistance of management firms. This disintermediation means more competition in the market for sales and live performances cutting into revenue and increasing promotion and marketing costs

Service overview

  • Using advanced analytics techniques, models are built that allow prediction of revenue performance to a strong degree of confidence.
  • The more data available to the analytics component , the more responsive the models. Deloitte has the data aggregation expertise required to capture the necessary disparate data sources such as those shown below:
    • Physical sales
    • YouTube
    • Spotify
    • Twitter
    • Facebook
    • iTunes
    • PRS for music
    • Google

Back

 

Share this page

Email this Send to LinkedIn Send to Facebook Tweet this More sharing options
Follow:

Get in touch

More on Deloitte