Unlocking music royalty revenues for production companies

Savvy music licensing company Melodie is changing how television production companies view the music in their productions. In 2022, performing rights organizations (PROs) paid out €3.55 billion (approx USD $4B) in royalties from TV and radio broadcasts globally, up +11.4% from 2021. PROs are those affiliated music collection societies like PRS, ASCAP, and GEMA that clear territorial broadcast rights and juggle music cue sheets. They negotiate with broadcasters and streaming platforms to clear the 'performance' of music on these platforms, sharing that royalty income pro rata with composers and music rights holders based on metrics like time of play, type of usage, and the amount of music used.

"We're transforming what was once a music licensing cost into a profit line item, unlocking new revenue from a $4B annual opportunity for prolific producers of factual and non-scripted television", Evan Buist, Founder and Managing Director at Melodie, explained about their inventive royalty partnership model, where they share a portion of music royalties generated from partner TV shows.

Melodie is a tech-enabled music licensing solution. It combines white-glove music curation with simple licensing, intuitive search, and workflow tools, providing easy access to an exclusive library of fresh, high-quality, authentic music from an elite roster of composers. It's a business with a purpose: paying artists fairly and supporting a thriving creative community.

Since launching only six years ago, Melodie's multi-award-winning technologies ('Product of the Year at NAB Show 2024') have grown to include diverse search options, such as AI-powered search tools and search 'exclusions.' An automatic cue sheet tool was recently added, instantly generating PRO-ready cue sheets from an EDL, XML, or TXT file exported from the edit. A sign of their fast-growing success and uptake is that the Melodie library has now seen more than 20 million minutes of music broadcast on free-to-air television and VOD platforms globally in shows like "Ninja Warrior," "Deadly Women," "The Amazing Race," and "Real Housewives," with music broadcast in almost every country in the world. As such, royalty income from Melodie's catalog of music rights continues to grow.

TURNING COSTS INTO REVENUE
As margins increasingly get squeezed, television production companies must find new ways to make 1 + 1 = 3. And that's where Melodie comes in. Melodie's royalty partnership model allows production companies to generate royalties from the music featured in their television shows without complex registrations, tracking, and collection audits. Melodie partner production companies use Melodie music in their programs, and Melodie takes care of the administration, paying partners a portion of global royalty income each year. "We work closely with our partners, ensuring the Melodie library is always fit for purpose, often acquiring new music for upcoming productions. We understand that outstanding, relevant creative must always drive decision-making in editing," Buist said. Melodie's innovative approach to music royalty partnerships enables production companies to turn what was once a music licensing cost into a high-growth revenue stream, driving quality and uniqueness while accessing part of a €3.55 billion annual royalty opportunity.