Licensing as a Revenue Stream

Intoduction In today’s evolving music industry, artists are increasingly looking to maximize income beyond traditional royalties from streams and sales. One lucrative avenue is sync licensing, which allows musicians to earn revenue by licensing their songs for use in visual media like TV shows, movies, commercials, video games, and online content. What Sync Licensing Entails Sync (synchronization) licensing refers to the use of music in "sync" with visual media. When a song is licensed for sync, two licenses are typically required: 1. Master License: Permission from the rights holder of the sound recording (usually the label or the artist if independent). 2. Synchronization License: Permission from the music publisher or songwriter, allowing the music to be used in visual projects. Together, these licenses grant content creators the right to pair a song with visual elements. Fees for sync licenses can range widely depending on factors like the song's popularity, the project’s budget, and the scope of the usage (e.g., a global ad campaign vs. a local TV show). Why Sync Licensing is a Valuable Revenue Stream 1. High Earnings Potential: Sync licenses often offer substantial one-time fees, which can be far more lucrative than streaming royalties alone, especially for independent artists. Major brand ads, for example, can pay thousands of dollars for a single sync license. 2. Increased Exposure: When a song is featured in popular media, it exposes the artist to potentially millions of new listeners. This can drive up streams, boost sales, and increase the artist's visibility. 3. Global Reach: With streaming and video platforms accessible worldwide, a song synced in an international series or ad can gain global recognition, opening doors to new audiences and even additional licensing opportunities in foreign markets. 4. Long-Term Residuals: Some sync deals include backend royalties if the licensed content continues to air. These residuals can create ongoing income, adding another layer of stability for artists. 5. Career-Building Opportunity: A successful sync placement can serve as a career milestone. It signals industry credibility and may lead to further licensing or collaboration opportunities, including partnerships with music supervisors or content creators. Final Thoughts In a world where music discovery is increasingly happening across multimedia platforms, sync licensing has become an essential revenue stream for musicians. For artists seeking to expand both their income and fan base, securing sync placements can provide not only financial rewards but also career-defining exposure.

In the rapidly evolving landscape of AI, data has become a pivotal asset, offering unique opportunities for commercialisation and monetisation. The groundbreaking deal announced yesterday between OpenAI and Axel Springer underscores the emerging trend of data deals and licensing in the AI sector, heralding a new era of AI-driven journalism and content creation. This unprecedented partnership allows ChatGPT to utilise and summarise news stories from prominent media brands like Politico and Business Insider. This agreement is significant for several reasons. Firstly, it enables AI models to access and use high-quality, current content, enhancing their capability to provide relevant and timely information. Secondly, it sets a precedent for how AI companies can legally use copyrighted material, a concern that has become increasingly prominent as AI technology advances. The value of a company's data has never been more apparent. In the AI context, data is not just a resource; it's the lifeblood that powers these sophisticated algorithms. By entering into data licensing agreements, content creators can open new revenue streams, and help ameliorate the adverse impact of AI outputs competing with their own work. This shift is essential in an era where traditional revenue models, especially in journalism and media, are under strain. The deal between OpenAI and Axel Springer also brings into focus the legal nuances of AI and IP. As AI models are trained on vast datasets, including copyrighted material, questions around ownership and infringement become increasingly complex. This partnership shows a path forward where AI companies and content creators can mutually benefit while respecting IP rights. Looking beyond this specific deal, the concept of data licensing in AI opens a myriad of possibilities. For AI models to be effective, they need diverse, extensive, and current datasets. Data licensing agreements can ensure a steady supply of this crucial resource while providing a fair compensation model for content creators. The OpenAI-Axel Springer deal is a harbinger of the changing dynamics in the AI industry. It represents a shift towards a more collaborative, ethical, and legally compliant approach to AI development and deployment. As AI continues to integrate into various sectors, the value of data will only escalate, making data deals and licensing an essential aspect of the AI ecosystem. This partnership is not just a business deal; it's a blueprint for the future of AI, data management, and the potential symbiosis between technology and content creation. Data deals in the AI context are new. Organisations will need expert advice on how these will need to be drafted, taking into account representations and warranties, indemnities and liability carve outs which are specific to AI. The licence grants will need to be carefully considered and limited to ensure that the licensor’s interests are maintained. I wonder who could help with that…

From THR: As the #streaming industry has come down from its blank-check era, it has rediscovered a time-honored way to keep revenue flowing: licensing #TV series and movies to other outlets. Acquired shows are among the most watched programming on streaming — it’s the year of Suits, after all — and shows with high episode counts help keep users inside a streamer’s ecosystem. Library programming is the longtime foundation of streaming: Netflix wouldn’t have become the behemoth it is now without its beginnings as a place to find episodes of shows that weren’t on traditional networks. In a huge data dump on all of its programming from the first half of 2023, the company said licensed series and movies accounted for 45 percent of time spent on the service in those months. Across the broader streaming landscape, that number is even bigger, according to Mitch Metcalf. Metcalf analyzed some 22,000 streaming titles tracked by Nielsen in October and November and found that almost three-fourths of streaming time was spent on licensed shows and movies. Much of that viewing is concentrated at the top, Metcalf notes: The 1,000 biggest titles — less than 5 percent of what’s available in the United States — account for about 70 percent of all viewing time on the streaming services Nielsen measures. “Almost half of them had virtually zero viewing — they just barely registered,” he says. “So right off the top, what are you really offering? What do people actually consume? You can take half off the table.” Netflix’s own figures released Dec. 12 point to that, as well: Of the 18,000-plus titles for which it provided data, more than 3,800 (about 21 percent of the total) registered fewer than 150,000 hours of viewing over six months despite a global subscriber base of 238 million users at the end of the second quarter. Which is not to say niche programming is dead: Free, ad-supported services like Tubi , The Roku Inc. Channel and Pluto TV have been growing by serving up more obscure programming — for relatively cheap licensing fees — and selling ads against it. “Then it’s a business,” Metcalf says. “You’re meeting a demand and getting paid for it, and you’re making an advertiser happy by delivering audience in a show they want to be in.” “It has echoes of broadcast and cable.” As the walled-garden model at other streamers begins to ebb, they’re also looking back to an earlier time in the industry and licensing to Netflix. Suits had been on Peacock for a couple of years before it exploded with its Netflix debut; legacy HBO shows have also seen a viewing bump after HBO Max started sharing rights with Netflix. “It’s a reflection of our recommendation system and what we do best,” Netflix co-CEO Ted Sarandos told reporters on a Dec. 12 call. Just don’t expect Netflix to become a seller anytime soon. “I don’t know that it would happen in reverse,” he said. “I think we can add value when we license content; I’m not positive that’s reciprocal.”

Fintech Evolution: From Hustlers to License Holders 💡 The global fintech industry is maturing, and its next phase of growth is being powered not just by tech innovation, but by regulatory ambition. But getting licensed is more than just ticking a regulatory checkbox; it’s a calculated move that often reveals the strategic DNA of the fintech itself. Licenses are not only legal tools - they're leverage. Whether it’s controlling infrastructure, going global, or unlocking new product categories, fintechs are increasingly viewing licenses as strategic assets. 1️⃣ Operational Ownership (Vertical Integration): Aiming for Control For fintechs like Stripe, Airwallex, Tamara, and Pluggy, licensing unlocks ownership of the rails. By cutting out intermediaries, these companies gain direct control over the customer experience, improve their margins, and enhance compliance. These companies are focused on building their capabilities internally to streamline operations and boost profitability. 👉 Outcome: Greater control over operations, faster product launches, improved unit economics. 2️⃣ Borderless Scale: Going Global Robinhood, for instance, plans to use its Brokerage License in Lithuania as a launchpad for trading services across the European Union. Similarly, Revolut’s Prepaid Payment Instruments License in India is a crucial step towards scaling its global banking services, while Nuvei targets Latin American markets with its Payment Institution License in Brazil. This group demonstrates how licensing can open new international revenue streams while ensuring compliance with local regulations. 👉 Outcome: Market expansion, regulatory resilience, cross-border product growth 3️⃣ Product Deepening: Expanding the Value Proposition For fintechs like Aspire, Neon, Cash App, and Offa, the focus is on product diversification. These companies use licenses to deepen their offerings by adding new financial products - such as lending, investing, or payment initiation. This category highlights how fintechs are leveraging licenses not just for operational scale, but for broadening their customer-facing product portfolios. 👉 Outcome: Full-suite product offerings, increased lifetime value, and ecosystem moat. Fintechs have flipped the script - regulation is now part of the blueprint, not the barrier. A blueprint of trust, control, scale, and product innovation. Whether it's Stripe insourcing banking licenses, Robinhood setting up shop in Europe via Lithuania, or Neon doubling down on payments infrastructure in Brazil, one thing is clear: Licenses look like compliance. They act like weapons. Source: WhiteSight - https://shorturl.at/7fEAh #Innovation #Fintech #Banking #FinancialServices #Payments #Lending #BNPL #License #Compliance #Strategy

The Wellness Expansion Playbook No One Is Talking About Most alternative wellness brands are stuck in 𝗮 𝗻𝗲𝘃𝗲𝗿-𝗲𝗻𝗱𝗶𝗻𝗴 𝗰𝘆𝗰𝗹𝗲 𝗼𝗳 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗹𝗮𝘂𝗻𝗰𝗵𝗲𝘀, 𝗰𝗼𝘀𝘁𝗹𝘆 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴, 𝗮𝗻𝗱 𝗿𝗲𝘁𝗮𝗶𝗹 𝗯𝗮𝘁𝘁𝗹𝗲𝘀. What if there was a 𝗳𝗮𝘀𝘁𝗲𝗿, 𝗺𝗼𝗿𝗲 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝗲 𝘄𝗮𝘆 𝘁𝗼 𝘀𝗰𝗮𝗹𝗲? 𝗕𝗿𝗮𝗻𝗱 𝗹𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 can be that 𝘂𝗻𝘁𝗮𝗽𝗽𝗲𝗱 𝗴𝗼𝗹𝗱𝗺𝗶𝗻𝗲. I have used this in multiple industries to great effect. Instead of doing all the work 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳, licensing lets you 𝗽𝗮𝗿𝘁𝗻𝗲𝗿 𝘄𝗶𝘁𝗵 𝗲𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗲𝗱 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 that already have the manufacturing, distribution, and retail relationships in place. • 𝗡𝗼 𝗺𝗮𝘀𝘀𝗶𝘃𝗲 𝘂𝗽𝗳𝗿𝗼𝗻𝘁 𝗰𝗼𝘀𝘁𝘀—scale without heavy investments in production   • 𝗡𝗲𝘄 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘀𝘁𝗿𝗲𝗮𝗺𝘀—earn passive royalties while staying focused on core growth   • 𝗥𝗲𝘁𝗮𝗶𝗹 𝗲𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻—your brand enters new markets without the typical barriers   • 𝗖𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽—become an industry authority by extending into strategic verticals 𝗥𝗲𝗮𝗹-𝗪𝗼𝗿𝗹𝗱 𝗟𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 𝗣𝗹𝗮𝘆𝘀 𝗳𝗼𝗿 𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝗪𝗲𝗹𝗹𝗻𝗲𝘀𝘀 𝗕𝗿𝗮𝗻𝗱𝘀: • A 𝗻𝗼𝗼𝘁𝗿𝗼𝗽𝗶𝗰 𝗯𝗿𝗮𝗻𝗱 licenses its formulations for an energy drink collab   • A 𝗰𝗮𝗻𝗻𝗮𝗯𝗶𝘀 𝘄𝗲𝗹𝗹𝗻𝗲𝘀𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 licenses its name for premium CBD skincare   • A 𝗳𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗺𝘂𝘀𝗵𝗿𝗼𝗼𝗺 𝗯𝗿𝗮𝗻𝗱 partners with a supplement manufacturer to launch a co-branded sleep line Licensing isn’t just for big corporate brands—it’s a game-changer for alternative wellness businesses ready to break into the mainstream. Are you leveraging licensing for your brand yet? #scalingwellness

Most filmmakers are BLEEDING MONEY because they fundamentally misunderstand what they're selling. They pour their hearts into creating films but fail at the business side. When entering the world of film distribution and monetization, a key question every filmmaker must ask is: What am I selling? The answer shapes your entire business strategy. At the heart of this question lies the distinction between selling your film versus selling the rights to your film. Your Film vs. Your Rights: You can choose to: 🔸 Keep the film: Retain ownership while monetizing rights selectively. 🔸 Sell the rights: Transfer usage and monetization permissions for specific markets or platforms. Most distribution deals involve selling rights—not the film itself. This is how filmmakers generate revenue across various platforms, regions, and business. Here are the major channels where film rights can be sold or licensed: A. Theatrical Releases -Limited Release: Targeted screenings in select cities or festivals. Often used for indie films, test marketing, or awards qualification. -Wide Release: Mass-market theatrical distribution across multiple regions or countries, suitable for mainstream or high-budget films. B. Television Rights can be sold to broadcasters for scheduled programming or exclusive premieres. Includes: -National TV -Cable networks -Educational channels C. Number of Runs -Some deals limit the number of times a film can be aired or screened. -This includes rerun rights or seasonal programming deals. D. Educational Licensing -Films with academic, cultural, or informational value can be licensed to educational institutions, libraries, or universities. E. Emerging Fields of Digital Distribution: With digital streaming revolutionizing the industry, several new monetization models have emerged: 🔸 Transactional Video on Demand (TVOD): Consumers pay per view or download. Platforms: iTunes, Vimeo, Apple TV Model: Pay Per View 🔸 Subscription Video on Demand (SVOD): Viewers subscribe to a service and access unlimited content. Platforms: Netflix, Amazon Prime Video, Disney+ Model: Subscription-based OTT (Over-the-top) 🔸 Advertising Video on Demand (AVOD): Content is free for viewers but monetized through ads. Platforms: YouTube, Hulu, Crackle Model: Ad-supported OTT Physical Distribution: F. DVD or Blu-ray Sales: Despite the rise of streaming, physical distribution still holds value, especially for collectors, niche genres, or limited edition releases. -These can be sold online, at events, or through retail distribution channels. G. Territory and Region Considerations: Rights can be sold based on geographical territories—this includes: 🔸 National 🔸 Continental 🔸 Global rights Always remember: You are not just making a film. You are creating a product with multiple layers of monetizable rights. #FilmBusiness #FilmDistribution #IndieFilmmaking #ContentCreators #FilmRights

💡 Startups: Have You Considered Licensing Instead of Direct Sales? 💡 If you’re building tech, there’s an alternative path to just selling it yourself: licensing. Think of it as “renting out” your technology to another company, so they can use it, sell it, or integrate it into their products. And you? You sit back and collect royalties. Here’s why this might be worth a look: 1. Recurring Revenue Without the Hustle – Licensing brings in ongoing income (through royalties) without the heavy lifting of manufacturing, sales, and distribution. 📊 2. Expand Your Reach, Faster – You’re letting others take your tech into markets you might not have the resources to reach right now. Imagine getting your product in front of a bigger audience with less work on your end. 🌍 3. Share the Risk, Not Just the Reward – Scaling up takes time, money, and a whole lot of work. With licensing, you get the financial benefits and brand exposure without taking on all the risk and cost. ✳️ 4. Flexibility – Licensing is open to all kinds of IP, not just patented inventions. Software, content, even certain processes can be licensed, making it accessible for all sorts of tech. 🧘♀️ If you’re in Alberta, check out Elevate IP Alberta for resources and support. They provide funding and expert advice to help Canadian startups protect and leverage their IP, making it easier to get started with licensing. https://elevateip-ab.com/ Ready to Explore? Here are some great resources to help you dig deeper: • Elevate IP Alberta: Find funding and mentorship to make the most of your IP. ElevateIP Alberta • Innovation, Science and Economic Development Canada (ISED): Learn more about IP for Canadian businesses. https://lnkd.in/gVnChPNg Swipe through the carousel below to get a simple breakdown of how licensing can work for your startup! 👇 #startup #licensing #royalties #earlystage #Alberta #IP #founders CC: Kevin, Layla, Cameron, Daniel, Catapult Startups

Read for some free game🫡👇🏾 ***THIS POST DOES NOT CONSTITUTE LEGAL ADVICE*** While a quick payout from a sale may be enticing, here are some reasons you may want to consider licensing your content rather than selling it: 💎 Maintaining Ownership/Control — Typically a sale will transfer all right, title and interest in and to the intellectual property from the creator the buyer, in perpetuity. With a licensing agreement, the creator will remain the owner of the IP, while also generating revenue from the license. Maintaining ownership allows the creator to continue to leverage the content in various ways over time without giving up control. 💎 Recurring Revenue — A licensing agreement will usually involve recurring payments (e.g., royalties or subscription fees), which can provide a steady stream of revenue for the creator. This can provide a level of consistency and continuity many creators enjoy while trying to build and scale their brand. 💎 Reach and Exposure — By allowing third parties to license your content, you can reach wider and more varied audiences and markets that a creator may not be able to break into on their own. In expanding their reach, the creator can ultimately grow brand awareness and revenue, without giving up the rights to the content itself. 💎 Partnership Opportunities — Licensing content often fosters and creates new relationships, not only with just the licensee, but with the licensee’s sphere of influence as well. This can lead to collaborations and cross-promotions that the creator may not have originally anticipated. 💎 Monitoring and Enforcement — By maintaining ownership and control of the content, creators can help mitigate the risk of piracy, unauthorized use and infringement of the content. Having control over all aspects of the brand, creators can guard against content pollution. Hope this was helpful! 🙋🏾♀️☺️

For B2B companies with proprietary software, technology, intellectual property, or processes, the strategic implementation of licensing and usage fees opens the door to recurring revenue opportunities. By adopting flexible licensing models, ensuring ongoing value delivery, and staying responsive to market dynamics, B2B enterprises can create sustainable revenue streams while providing clients with valuable and evolving solutions. In a landscape where innovation is key, the judicious use of licensing and usage fees enables B2B companies to monetize their intellectual assets effectively, ensuring financial stability and long-term success.

Unlocking the Value of Your Intellectual Property through Licensing. In today's fast-paced economic landscape, Intellectual Property (IP) licensing has become a vital strategy for individuals and organisations seeking to capitalise on their innovations. I have seen firsthand the benefits of strategic IP licensing in maximizing the value of one’s intellectual property while ensuring its protection. By licensing their IP, businesses can generate new revenue streams, expand their market reach, and boost brand visibility without sacrificing ownership or incurring the costs associated with full commercialisation. IP licensing offers a versatile approach to growing and protecting valuable assets, whether through patents, copyrights, trademarks, or franchising. By licensing their IP to third parties for specific products and services, businesses can leverage their brand's strength while maintaining control over its use. This generates ongoing income through royalties without the licensor needing to produce or distribute the IP-based product themselves, reducing the risks associated with market entry, product development, or scaling. However, while IP licensing can be a powerful tool to unlock the potential of one’s intellectual property, IP valuation is crucial to a successful licensing arrangement. IP valuation determines the monetary value of intellectual property assets, such as patents, trademarks, copyrights, and trade secrets, and is essential in IP-based transactions and commercial agreements. By carefully selecting a licensee, negotiating strong agreements, and actively managing the licensing arrangement, companies can turn their IP assets into key drivers of growth, long-term success, and innovation. Individuals and businesses are encouraged to seek expert legal advice on licensing strategies and explore the possibilities of licensing to maximise the value of their intellectual property. #intellectualpropertylicensing #innovation #ipvaluation #IP #sbp