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
