The Digital Dollar reports and guides: Helping artists and managers navigate the streaming business

WELCOME TO THE DIGITAL DEALS COMPARISON CALCULATOR

The Digital Deals Comparison Calculator has been developed as part of the MMF’s Dissecting The Digital Dollar project alongside the ‘Deals Guide’, in order to make it easier to visualise the pros and cons of different label and distributor deal types.

By inputting the kind of deal you are signing up to, the investment a label partner will make, and the level of streams you are anticipating, you can see how subsequent streaming income will be shared between the label and the artist over the next five years. This is then counter-balanced with the list of services the label will provide.

In order to keep the Calculator as simple as possible to use, a number of assumptions have been made, about deal specifics, and streaming rates and royalties. Of course every deal is different, streaming rates are constantly evolving, and streaming royalties vary according to a number of factors. The Calculator is also specifically focused on streaming income, and does not include other revenue streams like physical, sync and PPL.

Therefore the Calculator is not intended as a financial planning tool, but to provide an easy way for artists and managers to compare the impact different deal decisions have on the way subsequent streaming income is shared.

WELCOME TO THE DIGITAL DEALS COMPARISON CALCULATOR

This has been developed alongside the MMF’s ‘Deals Guide’ which you might want to read first. You should also check these instructions on how to fill out the calculator which outline the assumptions we have made and explain what each section is about.



THE CALCULATOR


 

1. PICK A DEAL TYPE AND ROYALTY RATE

Choose your deal type from this list. These are based on the MMF’s Deals Guide. Each deal type comes with a pre-programmed royalty rate, so you might want to choose the deal type with a top line royalty rate closest to the deal you are considering.


 

2. DEAL SPECIFICS AND ANTICIPATED STREAMS

This is the section where you tell us about your label or distributor’s financial commitment and your anticipated streams and campaign build.



 

3. DO RIGHTS REVERT OR ROYALTY RATES CHANGE?

This is the section where you can tell us if the label or distributor will control the artist’s music over the full five year term or if rights revert at any point, and if so what that does to the royalty rate. If your deal is fixed for next five years you can leave this section blank.


 

Artist and Label Earnings

Once you have filled out the above sections these figures will automatically appear based on the assumptions we have made and the options you have selected above






SERVICES PROVIDED BY THE LABEL

The services likely provided under the deal type you’ve selected will appear in pink:


  • Artist Development
  • Product Development
  • Digital Distribution
  • Physical Manufacture & Distribution
  • Consumer Marketing
  • B2B Marketing
  • Press
  • Promotions
  • Social Media & Digital Channels
  • Sync

 


The Digital Deals Comparison Calculator was designed by Chris Carey at Media Insight Consulting. It has been built on broad assumptions to illustrate the difference between deal types. If you are looking for more bespoke modelling of label and distribution deals, Media Insight Consulting can provide support of this kind on a contract basis. His email is chris@mediainsightconsulting.com

 

 



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