RoyaltyShare Launches Label Advantage Service
RoyaltyShare, a premier provider of digital royalty solutions to the entertainment industry, today announced the availability of its RoyaltyShare Label Advantage Service, optimized for calculating and processing royalties for the digital and physical worlds. The service provides record labels with a web-based system, built from the ground up to simplify the process of generating and reporting royalties to artists, publishers and songwriters. The company also announced that two of the world's largest independent record labels, Sanctuary Records and Madacy Entertainment, have selected RoyaltyShare Label Advantage to manage digital royalty processing.
As the profits from online revenues continue to grow, labels have come under intense scrutiny from publishers and payees who expect accurate and timely reporting of royalty statements. To address this increasing pain point for the music industry, RoyaltyShare designed and built its comprehensive suite of Web-Based royalty services as an end-to-end solution for fulfilling royalty obligations in the digital world.
Building on the benefits of the RoyaltyShare Digital Advantage Service, which serves as the first step in compiling and aggregating the incoming data from digital sales channels, the RoyaltyShare Label Advantage Service provides for the accurate calculation and distribution of the royalties paid to artists, songwriters and their publishers from the sale of records and digital content.
"Record labels who rely on outdated legacy systems to calculate their artist and mechanical royalties will be operating under a severe disadvantage as the industry continues to shift from physical to digital distribution," said Bob Kohn, chairman and CEO of RoyaltyShare. "RoyaltyShare's Label Advantage Service alleviates the complexity and pain of managing royalties in the digital world. The result is that labels are free to spend time on the activities that ultimately drive their success – finding and developing new artists and cultivating new revenue streams."
Record labels using the RoyaltyShare services enjoy a secure and centralized repository for all proprietary information including catalog data, contract terms, mechanical licenses, historical royalty statements and sales data. The secure website provides remote access 24 hours a day, from anywhere in the world. Disaster recovery technology and remote location facilities ensure that data is absolutely safe.
Sanctuary Records & Madacy Entertainment Select RoyaltyShare Label Advantage
Sanctuary Records and Madacy Entertainment are among the initial labels that have chosen RoyaltyShare as a solution for royalty processing.
Sanctuary, one of the world's largest independent record labels, is using RoyaltyShare Label Advantage Service to process US mechanical royalties for the Harry Fox Agency as well as hundreds of music publishers.
"Sanctuary places a high priority on making sure that its partners are provided timely, accurate royalty statements," said Jonathan Smith, chief financial officer for Sanctuary Records. "The advent of digital revenue streams has made an already complex process even more challenging. We recognized that old technologies simply cannot handle the complexities of selling music in the digital world. RoyaltyShare came along at just the right time."
Madacy Entertainment, the largest independently distributed record label in North America, is using RoyaltyShare Label Advantage to process its digital artist and mechanical royalties.
"Madacy recognizes that digital sales are a significant growth opportunity," said Hillel Frankel, president, Madacy Entertainment. "RoyaltyShare offers a cost-effective solution for managing the complex data processing and royalty calculations inherent in digital sales. This service allows us to focus our energy on creating new products and developing new business opportunities."
Clients using the RoyaltyShare services have 24/7 visibility into catalog information, mechanical licenses and management reports, allowing them to track accruals for pending or incomplete licenses and outgoing payments. The graphic reporting functions on the RoyaltyShare website clearly identify sales data by service provider, types of revenue, top tracks and top albums to provide labels unprecedented insight into digital sales channels.
This transparency into the revenue data extends to the relationships the label maintains with its recording artists, music publishers, and other suppliers of content to whom they owe royalties. Providing royalty reports through a web-based service operated by an independent organization will increase the level of confidence that royalty payments are made accurately and timely. Increased confidence will reduce tension and discourage litigation, one of the great hidden costs of getting your royalty accounting wrong.
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