Digital content identification, licensing, and monetization platform Audible Magic is acquiring content fulfillment and rights administration business MediaNet from Canadian performing rights organization, SOCAN.
SOCAN and Audible Magic have also announced they have entered into a strategic partnership with the goal to use Audible Magic technology and services to help SOCAN improve operational accuracy and reporting to publishers and songwriters.
Financial terms of the deal were not disclosed.
SOCAN acquired Seattle-based Medianet in 2016. MediaNet had previously powered services including Beats Music, CÜR Music and Songza.
Audible Magic provides solutions for music licensing, content identification, and rights management to social media platforms.
The company states that this acquisition extends its capabilities to deliver licensing from ‘hundreds of labels and publishers, media files for more than 92 million tracks, full rights management, and royalty and payment administration’.
Audible Magic also claims that ‘This portfolio of services will enable social platforms to more easily exploit the opportunity for both music in UGC and premium content’.
“We see significant upside in enabling incremental revenues for the music ecosystem.”
Vance Ikezoye, Audible Magic
“Rightsholders and platforms will both benefit from our combined solution and will reduce the time and complexity of managing and paying for the use of music,” said Vance Ikezoye, Audible Magic Chief Executive Officer.
“We see significant upside in enabling incremental revenues for the music ecosystem.”
“The acquisition of the MediaNet services by Audible Magic creates long-term benefits for SOCAN’s members and clients.”
Jennifer Brown, SOCAN
Jennifer Brown (pictured), Interim CEO of SOCAN, added: “The acquisition of the MediaNet services by Audible Magic creates long-term benefits for SOCAN’s members and clients.
“Audible Magic is a knowledgeable and skilled company and we’re looking forward to working together to improve the accuracy of reporting to publishers and songwriters.”
SOCAN recently reported that it revenues grew 8.2% in 2019 – but payments to songwriters and publishers shrunk by 6%.
Former SOCAN CEO Eric Baptiste resigned from the company in April 2020.
Also in April 2020, SOCAN allocated up to a total of CAD $2 million (approximately $1.4m) for emergency royalty advances to help “struggling members” as a result of the COVID-19 crisis.Music Business Worldwide
