VNUE, Inc.'s Music Recognition Technology Quietly Gaining Steam
NEW YORK, Feb. 6, 2024 /PRNewswire/ -- VNUE, Inc. (OTC: VNUE) is actively working to change how music royalties are tracked and paid.
On a blustery and cold but sunny winter day recently, Melanie Lupino, owner of Jackson, TN's Downtown Tavern, was lamenting about the performing rights organizations (PROs), and how their practices have not changed in decades. Downtown Tavern is just one of the latest businesses to install VNUE's Soundstr and join the #MusicRevolution movement.
"They [the PROs] come in here and demand a large licensing fee for music that we don't even use," said Lupino. "Most of our musicians that come through are young original artists, whose music isn't even associated with a rights organization yet. Not only that, the rights organizations don't really even have a clue of what is being played, so how do they even know who deserves the royalties in the first place? This is why I am excited about Soundstr!"
Soundstr is VNUE's groundbreaking music recognition technology (MRT), which tracks and identifies music and its stakeholders (such as artists and songwriters) that is played in real-world scenarios, such as physical locations like the Downtown Tavern, as well as radio stations and online streaming stations. For the first time, business owners will have actual data to go back to the PROs and attempt to negotiate a better and more fair license agreement for public performance of music. Importantly, the data will also allow the PROs to be held accountable to ensure that royalties collected will actually go into the right hands.
"The system is grossly outdated," said Zach Bair, CEO of VNUE. "It is estimated that 30 percent of the budget of the PROs goes to collection activities. This means that 30% of all royalties collected seemingly doesn't even hit the pockets of the folks the PROs represent."
"Even worse, since they currently have no idea what is being played in these businesses, we estimate that over 80% of the correct songwriters and artists are not even being paid. So what happens to all that money? We are talking several billion dollars a year that the PROs collect from these types of businesses. We can help fix and streamline all of that."
"It's not their fault," said Bair. "The technology simply didn't exist previously, and they have done the best they could. But now it is time for positive change."
Bair explains that so much attention has been given to music streaming debacle and the miniscule royalties from those activities that the music industry and the general public has largely ignored what he calls the "gaping black hole" of "general licensing" – money collected from bars, restaurants, and other businesses that utilize music in public spaces, including radio. And many songwriters and artists simply don't realize they are not receiving their fair share.
"Technology solves big problems," said Bair. "I have spent half my life literally automating myself out of jobs. This is no different – if we have the ability to track music played in public spaces, why is there a need for cumbersome and many times disproportionately expensive 'blanket license agreements' that are based on obstruse and arcane formulas, for example, the number of nights that a bar does karaoke or has a band or musician? It doesn't matter. Music is music, and it should be treated like a utility, no different than electricity or water, and the utility payments should go directly to those who provide the 'service,' in this case, the songwriters and artists. With the ability to measure music, you can then create a fair and equitable pay-per-play model, which is what we have been working on. The time for change and reform in general licensing is right now."
In the meantime, said Bair, the PROs should discover the benefits of utilizing technology such as Soundstr. "With only a fraction of the eligible businesses licensed for music in the United States, for example, the PROs are leaving money on the table. Soundstr, by providing real data, could lower the cost threshold for licensing, and at the same time, vastly increase the footprint of licensed businesses. So even though the licensing fees may be lower on a per-business basis, the net result is an increase in royalties being paid to the stakeholders because of the willingness of businesses to become properly licensed as well as the decrease in associated costs of collection. And at the same time, making sure the right folks get a payday. It is a win-win for everyone."
Lupino added, "Everyone that I know is a huge supporter of music, and wanting to make sure that artists and songwriters get paid. There is not one person that I know who is 'anti-artist." Most of us are just anti-establishment, in that we all know the status-quo system is unfair. I believe Soundstr will help to fix this, and I am stoked to be a part of this #musicrevolution!"
For those businesses interested in becoming a Soundstr #MusicRevolution location at no cost or obligation, please visit https://www.vnue.com/soundstr-signup.
About VNUE, Inc. (www.vnue.com)
VNUE, Inc. is a multi-faceted music technology company dedicated to monetizing the live music experience for artists, labels, writers, and publishers, with products such as its set.fm instant content distribution platform, exclusive license partner and "instant live" pioneer DiscLive (www.disclive.net), and protecting the rights of artists and writers with the company's Soundstr music recognition technology (MRT) (www.soundstr.com). VNUE also recently acquired StageIt (www.stageit.com), one of the oldest and most well-known ticketed livestreaming platforms.
The veteran entrepreneurs, artists and songwriters behind VNUE, led by music and tech entrepreneur and recording artist Zach Bair (www.zachbairmusic.com), are passionate about the future of their industry and ensuring that rights holders' value is not lost amid always-changing technology.
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SOURCE VNUE, Inc.
