Legal digital music sales and performances are an increasing source of revenue to music companies and their artists. Many music executives believe digital music sales will be the major source of revenue within the next 10 years. But, unlike CDs or DVDs, no mechanism exists for these companies to count independent downloads or streams generated by retailers. The lack of a closed-sales loop creates the potential for inaccuracies in digital sales reporting. A growing array of licensing agreements covering alternative uses (e.g. streaming, ring tones, etc.) on the horizon, increase the urgency to minimize the amount of lost revenue by music companies and their artists.
FTI has a leading presence in digital revenue assurance. Leveraging our formidable skills in complex data management, modeling, due diligence and forensic accounting our methodology balances the needs of the labels for accuracy with the needs of retailers for a minimally invasive approach to the assurance process.
Our process is comprehensive: We ensure that there is a three-way match between the retailer’s server logs (where actual streaming is recorded), their accounts receivable and your payments. Our methodology takes into account downloads, subscription agreements, streaming and eventually ad revenue splits. The methodology will also be adjusted as new revenue models emerge in the industry.
In addition we can help content owners maximize the value of the data they receive from their retailers and develop contract terms that simplify the audit process and provide more in-depth data from their retailers.
It is critical for the labels to have a partner who understand that the digital retailer is both a valued client and key partner. FTI fosters a collaborative relationship when verifying data, understanding discrepancies and performing data testing on retailers. FTI conducts these studies efficiently, openly and unobtrusively.