VNUE, Pro Music Rights Tweaking Licensing Model

Partners With VNUE

VNUE has teamed up with performing rights organization (PRO) PRO MUSIC RIGHTS to create a new paradigm in music licensing, which ostensibly will lead to more businesses becoming licensed to play music, and at the same time, ensure the correct rights holders are being compensated. Together, they plan on altering the licensing model from the typical "blanket license" scenario, to a more "utility-based" model, where licensees pay for what is actually played, and the specific stakeholders are compensated for those plays. 

"Today, in almost all situations, licensees of music must pay PROs for blanket licenses, even though the likelihood of the business using the entire catalog is quite slim," VNUE CEO ZACH BAIR said. "The model that PRO MUSIC RIGHTS is developing is a much more sustainable, transparent model, and works for big and small businesses alike. Instead of paying for music that may never be played, licensees will pay for what they use, very much like how a consumer would pay for their electric bill. SOUNDSTR will act as the 'meter' for all practical purposes. This has huge benefit not just for the business owners, but especially for the rights holders. The SOUNDSTR platform and technology will identify when, where, and how many times their music has been performed, and will create an audit trail. We are therefore enabling a model that has been dreamed about for a long time by artists and venues alike, but never been accomplished until now. It is Jake's forethought into creating a more sustainable model, combined with our technology and VNUE's core beliefs along the same lines, which makes this so exciting."

"PRO MUSIC RIGHTS is taking the approach that rights holders should be fairly compensated for each usage of their work(s) while still being affordable and transparent for all parties, including music users," PRO MUSIC RIGHTS Founder JAKE P. NOCH said. "VNUE's Soundstr platform and the data it provides is the key ingredient in the success of the PRO MUSIC RIGHTS model. Music is consumed just like electricity or water, and by creating a model whereby the fees reflect the actual usage, we create a much friendlier and transparent licensing scenario, one where the rights holders of the actual music being utilized are receiving royalties for each and every song play while still reducing licensing costs for music users."

VNUE and PRO MUSIC RIGHTS intend to start rollout to licensees within three to four months for businesses that do not have live music, and six months to a year for those that do.PRO MUSIC RIGHTS will be updating its license agreements in the coming days to reflect the SOUNDSTR requirement. Most licensees will pay a small monthly fee combined with a "pay-per-play" royalty, which will go 100% to the rights holders. 

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