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Synch

The Rights, a synch licensing clearance platform, launched publicly on Tuesday (April 16) following a beta test period that involved participation from two major music companies, Kobalt Music Group and Believe. Founded by a team of synch and licensing veterans with funding from a motley cast of investors, executives and entrepreneurs, the company is trying to build a better mousetrap that simplifies a time-consuming process and, possibly, reduces the threat from emerging technology.
Created in partnership with Dequency, a blockchain-based synch licensing company, The Rights purports to be a useful tool to handle the increasingly high volume of synch licensing requests from small productions like limited-release films, podcasts, content creation and concert footage. The goal is to make the process easier at scale by allowing a track with multiple rights holders to be cleared in a single transaction.

“We can match the agility of production music libraries and one-stop catalogs, yet offer the pricing flexibility, consent rights and customized terms required to maintain the premium value of commercial music,” said Tres Williams, founder/CEO of The Rights, in a statement.  

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Williams is a former executive vp of business affairs at iHeartMedia who had similar duties at Thumbplay, a subscription music streaming service acquired by Clear Channel — later renamed iHeartMedia — in 2011. Williams is joined at The Rights by president Keatly Haldeman, who is founder/CEO of Dequency as well as co-founder/CEO of Riptide Music Group; and chief business officer Scott Marshall, another former executive at both iHeartMedia and Thumbplay.  

The Rights has raised $7.5 million to date from the likes of film and TV production company Spyglass Media Group; Endeavor Entertainment; venture capital firm Borderless Capital; blockchain developer Algorand; Grit Capital Partners; iHeartMedia chairman/CEO Bob Pittman; and Elon Musk’s siblings: entrepreneur Kimbal Musk and Tosca Musk, the latter a filmmaker and co-founder of video streaming platform Passionflix.   

Despite an explosion in opportunities for placement in streaming content, synch license revenue has grown at a slower rate than subscription streaming royalties. The global synch license market, as measured by the IFPI, grew 4.7% to $632 million in 2023 — a figure that covers recorded music only, not music publishing, and excludes production music libraries. That’s less than half the 11.2% growth in subscription revenue. In the United States, synch revenue grew 7.4% to $411 million last year, according to the RIAA, well behind the 10.6% growth in subscription revenue.  

Now, synch licensing faces a threat from the sudden rise of artificial intelligence-created music. The Rights warns that AI-created music could grow into a multi-billion-dollar business in less than a decade, “siphoning revenue away from the artists and writers of the world’s most-desired songs,” it said in a press release. While technology has transformed everything from music distribution to marketing, the process of clearing synch licenses remains “untouched by tech efficiencies,” Haldeman said in a statement. “Our goal is to create infrastructure for the industry to make the clearance process smooth for both rights holders and licensees.”

Now that the Hollywood actors’ strike is over, music supervisor Justin Kamps can afford to keep his 3-year-old daughter in daycare. “Things were getting a little bit scary these last couple months,” says Kamps, who picks songs for Bridgerton, Grey’s Anatomy and other hit TV shows. “We were going through the financials and cutting back whatever we can.”
SAG-AFTRA’s 60,000 members voted to approve a deal with studios last Friday, after halting work for nearly four months, following a screenwriters’ strike that lasted from early May to late September — both of which were devastating not just to Hollywood but the $2 billion music-synch industry. “That’s been quite a dark thing,” Stephanie Diaz Matos, head of music supervision for writer-actress Issa Rae‘s music company Raedio, told Billboard in July.

With Hollywood going back to work, TV shows and movies have already resumed sending out briefs to publishers and record labels requesting songs for key dramatic moments and soundtracks. “It’s definitely a relief,” says Alison Dannenberg Frost, vp of film and TV creative for music publisher peermusic. “We saw a slowdown on the creative side and licenses coming in the door. We really just started seeing it affecting our monthly numbers.” The synch business makes up 50% of Spirit Music Group’s publishing revenue, according to Amy Hartman, the company’s senior vp of creative services, film and TV music, who adds, “It’s incredibly important.”

Had the strikes continued much longer, Spirit would have had to consider cutbacks and “do some reevaluating,” Hartman says. “Thankfully, we’re pretty lean and mean, so we weren’t forced to face that question.”

By contrast, music supervisors for films and TV shows are generally freelance contractors and had to scramble to stay afloat financially during the strikes. Laura Webb, a supervisor for Love at First Sight, Monster High and other shows, spent the first month of the strikes on post-production for existing shows, but one of them wound up getting canceled and cut the pay for that job in half. “We have no protections. We were expecting to get that money, and we just lost it,” she says. “The last week has been slower, for sure — the slowest it’s been. But hopefully good timing for things to turn around.”

Webb and her colleagues faced a separate setback over the summer, when the National Labor Relations Board ruled against part-time freelance Netflix music supervisors who’d requested a union certification election in October 2022. After Netflix refused to recognize the union, the supervisors argued they needed collective-bargaining power to improve their financial conditions: “Their responsibilities have expanded, their conditions have deteriorated, and their pay has stagnated,” the International Alliance of Theatrical Stage Employees, which collaborated with the Netflix employees, declared at the time. But Danielle M. Pierce, the NLRB’s acting regional director, wrote in August that “music supervisors are independent contractors who are not employees of Netflix.”

“We’re regrouping and trying to figure out next steps,” Webb says. “It’s not over, but really a big blow.”

Throughout the strikes, music companies pivoted to an increased focus on pitching for synchs in video games and TV commercials — continuing to take music supervisors to lunch to maintain relationships and help out their struggling freelance colleagues. Peermusic donated $100 grocery-store gift cards to out-of-work members of the Guild of Music Supervisors, a non-profit organization.

Although Spirit’s Hartman is ready for the synch faucet to turn back on and “all the beautiful amount of licensing and briefs to come our way,” peermusic’s Frost expects a lag, possibly extending into early 2024. Movie and show projects are likely to restart at the “script and filming stage,” she says, while synch work generally begins during post-production at the end: “I’m predicting it’s going to be a slow pickup, especially now we’re going into the holidays.”

Because Netflix, Disney and other top studios have said they would pull back on new content, the synch business may also begin to flatten after years of growth. Frost predicts a post-strike boom in synchs in early 2024, followed by a longer-term drop-off: “I think it’s going to slow down as streamers adjust to this new world, and they’re picking up less content.” Heather Guibert, a music supervisor working on a documentary about songwriter Diane Warren, adds: “Disney used to make, let’s hypothesize, 100 projects a year; suddenly, that goes down to 50. That’s 50 fewer projects for the music supervisor to work on. It’s rough.”

During the strikes, Amanda Krieg Thomas, a music supervisor for American Horror Story and Monster: The Jeffrey Dahmer Story, had to slash the hours for the three employees of her company, Yay Team — forcing one of them to quit for another job. She’s hopeful — and “still a little cautious” — that the post-strike era will restore her company to maximum financial health. “What’s the new normal? Is there actually going to be less content, and what does that look like for music supervisors?” she asks. “But everybody’s excited to really get going again.”

Hipgnosis Song Management announced a deal on Tuesday that gives Beatclub producers access to some of Hipgnosis’ iconic hit songs and boosts its own access to more synch opportunities, the companies said in a joint statement.
Launched in 2021 by four-time Grammy winner Timbaland and his longtime manager, the head of Mono Music Group Gary Marella, Beatclub is an online marketplace built to help creators and producers monetize their beats and music.

Beatclub users can already use beats by Timbaland and others, like Justin Timberlake, Tainy, J. Cole and Mike Dean, in their own mixes. Hipgnosis, which also invested in Beatclub’s recent series A-2 funding round, will now also offer a hand-picked collection of songs from its catalog approved for sampling by Beatclub’s elite tier of producers. Any other rights that artists need to have cleared for usage are handled by Beatclub’s licensing team.

The deal could also help place more of Hipgnosis’ songs in films, TV, ads and games because Beatclub’s portal helps connect artists on its platform to synch opportunities with major brand, label, gaming and production companies. Similar strategies have been deployed by other catalog companies, like Primary Wave.

Timbaland has worked with Hipgnosis and its founder Merck Mercuriadis before, having sold his catalog to the music investment in 2019.

“At a time when interpolation and sampling has never been a more important part of creation and success, I want the greatest creators in the world to have access to our incomparable songs to make them the hits not only of the past but the future,” Mercuriadis, founder and head of Hipgnosis Song Management, said in a statement.

Calling Mercuriadis a “disruptor,” Timbaland said Mercuriadis’ “vision of the future of the music creator economy aligns closely with Beatclub’s.”

Marella, Beatclub’s co-founder, said Hipgnosis’ mission to promote songwriters and producers’ rights aligns with Beatclub’s values. “Beatclub … was built for creators by creators,” Marella said in a statement. “Our mission has always been to empower artists, song writers and producers however we can.”