Mogul aims to assist musicians in monitoring and managing unclaimed royalties

Artists often find the intricate realm of royalties and rights management to be a significant source of frustration. Given the proliferation of record labels and streaming platforms, artists may face challenges in monitoring the utilization of their work and understanding their earnings across various platforms. Mogul aims to provide artists with a streamlined system for monitoring their earnings and staying informed about potential sources of untapped revenue.

The organization
The company has secured $1.9 million in seed funding from notable investors, including Wonder Ventures, United Talent Agency, Amplify.LA, and Kerry Trainor’s Creator Partners, who is the former CEO of SoundCloud. Joey Mason, a former VP of engineering at SoundCloud, and Jeff Ponchick, the former head of creators at SoundCloud, founded Mogul in 2023.

Ponchick, the creator of SoundCloud’s Next Pro subscription plan, shared via email that after leaving the company in 2022, they began contemplating the concept of monitoring musicians’ uncollected royalty earnings.

The difficulties musicians have in pursuing just compensation and their financial struggles intrigued us. This seemed to go against my initial expectations. Through extensive research and interviews with musicians of varying career paths, common challenges began to surface,” he stated.

The company has conducted a private beta with a group of 250 artists, during which it successfully tracked $3.5 million in revenue that had not been previously identified.

Could you please provide more information about its functionality?
Mogul offers a comprehensive analysis of the various revenue streams for artists, encompassing both publishing and sound recordings. These include mechanical royalties, which pertain to the streaming and reproduction of music, as well as public performance rights and neighboring rights, which involve the utilization of a track on platforms like broadcasting.

The company facilitates artists’ connection to various music distribution platforms, including Audiomack, District, FUGA, and DistroKid. By establishing connections between various sources, users are able to effectively monitor and trace royalties originating from multiple platforms.

Artists have the ability to analyze their earnings from various streaming platforms, as well as income generated from individual tracks. Companies collaborating with artists must furnish raw data pertaining to their royalties. Ponchick observed that these files are typically left untouched unless an artist decides to conduct an audit. Mogul aims to extract data from these files and tracks through an automated “desk audit” to identify any potential gaps in an artist’s income from their rights.

According to the company’s estimates, artists are deprived of nearly 10% of their potential revenues in the form of missed royalty incomes. The founder highlighted that missed royalties can often be attributed to complications arising during the copyright registration process.

Many of the challenges can be attributed to registration-related matters. Managing and maintaining multiple platforms can be challenging for artists, leading to overlooked tasks and missed opportunities within the intricate and opaque music industry. It is our responsibility to address this matter,” he observed.

Marcus Cobb, one of the co-founders of Mozaic, a solution for splitting creator payments, highlighted the legal status of music as intellectual property. He emphasized the intricate nature of how artists can generate income from their work.

The background music in restaurants is subject to distinct rules and regulations compared to the music streamed on Spotify or heard in TV shows, movies, and video games. The regulations are quite stringent. According to him, it is necessary to provide comprehensive information about collaborators and the distribution of copyright ownership.

Cobb highlighted the significance of meticulous copyright registration, emphasizing that even minor errors can lead to years of unpaid royalties.

Earning income
Mogul is currently exploring various strategies to generate revenue. Initially, the company is implementing a software-as-a-service (SaaS) model that offers varying levels of auditing for startups. Additionally, it includes features such as royalty anomaly detection for enterprise customers.

The company has also experimented with a model in which it deducts a percentage from artists’ royalty recovery amount. The company plans to develop a model based on feedback from artists.

The issue of royalties
With the rise of short video platforms, there has been an increase in the utilization of artists’ work. There is an increasing discussion surrounding the equitable distribution of royalties among artists, with regulators taking a serious stance on the matter.

Legislators in the United States, such as Rashida Tlaib, are actively exploring avenues to enhance musicians’ compensation through legislative means. In the previous year, France put forward a proposal to impose a tax on music streaming services with the aim of providing financial support to musicians through a dedicated organization. In recent months, the European Union has announced its intention to develop new regulations aimed at improving the equitable allocation of streaming revenue to artists.

Given the intricate and dynamic nature of this system, investors in Mogul perceive a potential for the startup to support artists.

The process of tracking and remitting revenue is intricate and subject to continuous changes. The pain is experienced by creators of all kinds, regardless of whether they are musicians, digital creators, or podcasters,” stated Caroline Jacobs, a partner at UTA.VC.

Artists often face the challenge of managing multiple platforms that lack integration, making it difficult to track revenue performance. Unfortunately, this can result in lost revenue due to various factors such as misspellings or incorrect account information.

According to Sam Wick, the head of UTA.VC, one of the challenges facing Mogul is ensuring that the platform is easily comprehensible for musicians.

Ensuring the platform and reporting are user-friendly and comprehensible will be crucial for achieving success. Mogul aims to seamlessly connect with various platforms, encompassing rights information and territories. He described it as a highly intricate issue.

Cobb, a music industry expert, believes that emerging musicians often face financial constraints when they begin their careers. He acknowledges the potential of platforms like Mogul in addressing this issue. Many tools and services are available to assist in the collection of funds, often charging fees as high as 20%. Therefore, establishing trust with artists becomes crucial.