It can be challenging for artists to keep track of their earnings from various platforms as the number of record labels and streaming services increases. Mogul seeks to simplify the process of monitoring income and identifying missed revenue opportunities for musicians.
About the Company
The company was established in 2023 by former SoundCloud executives Jeff Ponchick and Joey Mason. It has secured $1.9 million in seed funding from several backers, including Wonder Ventures, United Talent Agency, Amplify.LA, and ex-SoundCloud CEO Kerry Trainor’s Creator Partners. Ponchick shared that the inspiration for Mogul came after recognizing the recurring issue of musicians struggling to receive owed payments.
Image Credits: Mogul
The company has tested its platform with 250 artists in a private beta, identifying $3.5 million in previously unclaimed revenue.
Functionality
Mogul offers a comprehensive overview of an artist’s revenue sources, encompassing both publishing and sound recordings, including mechanical royalties, public performance rights, and neighboring rights. It enables artists to link to various music distribution sources like Audiomack, District, FUGA, and DistroKid, allowing them to monitor royalties across platforms.
Image Credits: Mogul
The platform aims to analyze raw data from royalty files through an automated “desk audit” to identify any overlooked income streams for artists. Mogul estimates that artists miss out on roughly 10% of their lifetime earnings due to overlooked royalty incomes, often stemming from registration-related issues.
According to Marcus Cobb, co-founder of Mozaic, even minor errors in copyright registration can lead to unpaid royalties over an extended period.
Revenue Model
Mogul is considering adopting a SaaS model for revenue generation, offering different levels of auditing to startups and implementing royalty anomaly detection features for enterprise clients. It is also testing a model where it takes a percentage cut from the artists’ recovered royalties, with the final decision contingent on artist feedback.
Image Credits: Mogul
Challenges and Future Prospects
The increasing presence of music in platforms like short video apps has further complicated royalty tracking. Consequently, there is a growing demand for fair compensation for artists, with regulators considering new mandates for equitable distribution of streaming revenue. Investors believe that Mogul is positioned to address these challenges faced by artists.
According to Caroline Jacobs, a partner at UTA.VC, maintaining accuracy in revenue tracking remains a significant challenge for creators across various industries. Sam Wick, also from UTA.VC, emphasized the necessity of simplifying Mogul’s platform to ensure ease of use for musicians. Additionally, Marcus Cobb from Mozaic stressed the importance of establishing trust with artists, especially amidst the multitude of financial services vying for their attention.
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