Industry

Public & Social Sector
Media & Entertainment
Social Sector

Company Profile

  • Non-profit performance rights organization
  • Organization’s aim is to administer and protect the rights of music authors

Situation and Objectives

  • Distribution of royalties to music authors has become inefficient, leading to high direct and indirect costs
  • Increasing costs directly reduce the amount of royalties distributed to music authors
  • Project objective: develop new royalty distribution rules that reduce the organization’s administrative efforts and benefit music authors (i.e. minimize losers of the new model)
  • Sub-goals: protect voting music authors’ royalty position so that they agree with the implementation of the new distribution rules

Approach

  • Strategy workshop: developed and longlisted multiple potential new royalty distribution models
  • Scenario analysis: what-if-analysis of several shortlisted models to identify:
  • Savings in administrative effort and direct distribution costs
  • Evaluation: each scenario was evaluated based on the cost factors, reduction of complexity, distribution fairness factors, and transparency elements of the distribution rules towards the artists

Results

  • Shortlist distribution models with high direct cost savings selected based on scenario analysis
  • Out of these, two distribution models defined as best-choice for implementation due to high fairness and transparency and significant reduction of complexity
  • Organization implemented one of the models identified as best-choice

Impact

  • Implementation led to significant benefits in the internal operations and for the music authors
  • Voting music authors accepted the new distribution model

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