Artist-Centric Royalty Distribution Tool

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Artist-Centric Royalty Distribution Tool

Inspired by a conversation on:

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Intrinsic Value Podcast - The Investor’s Podcast Network

TIVP039: Universal Music Group (UMG): Owning The World’s Music Catalog w/ Shawn O’Malley & Daniel Mahncke

Host: Shawn O’Malley & Daniel Mahncke

Timestamp: 00:42:00 - 00:44:00

Listen to Episode • View Podcast • All Ideas from The Intrinsic Value Podcast - The Investor’s Podcast Network

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Direct Quote

"There's certainly been a lot of tension around how royalties are allocated."

Market Gap

Current royalty distribution models are inequitable for niche artists.

The traditional pro-rata model used by streaming platforms often disadvantages niche artists, leading to dissatisfaction and tension within the industry. This inequity emerges because artists with smaller followings may struggle to receive fair compensation despite having dedicated fan bases. As the market evolves, artists are seeking more equitable ways to monetize their work. The challenge lies in creating a distribution method that fairly compensates musicians based on their actual listener engagement rather than overall streaming volume. A solution is needed to address these disparities and ensure that all artists can thrive.

Summary

The business idea is to develop an artist-centric royalty distribution tool that utilizes a user-centric model for calculating royalties. This tool would track individual user listening habits and ensure that subscription fees are allocated to the artists they actually listen to, rather than pooled and distributed based on overall streams. By providing a more transparent and fair revenue-sharing model, this tool could benefit both emerging and established artists. Target customers would include independent artists, music labels, and streaming platforms looking to enhance their royalty systems and support the artists they work with. This tool could also create new relationships between artists and their fanbases, fostering community and loyalty.

Categorization

Business Model
SaaS
Target Founder
Technical
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000-$10,000

Potential MRR (18-24 months)

Conservative
$3,000 - $8,000 MRR
Moderate (Most Likely)
$8,000 - $20,000 MRR
Optimistic
$20,000 - $40,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
9/10
Feasibility
8/10
Market Potential
9/10
Evidence
8/10
Overall
8.2/10
Found on September 28, 2025 • Analyzed on September 28, 2025 12:03 PM

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How should I validate this saas idea before building it?

2:34 PM

Great question! For a saas idea like this, I'd recommend starting with these validation steps:

  1. Customer interviews: Talk to Technical to understand their pain points
  2. MVP approach: Build a simple landing page to test demand
  3. Competitor analysis: Research existing solutions and identify gaps

Would you like me to help you create a specific validation plan for your medium difficulty idea?

2:35 PM

Yes, and what about the technical implementation? Should I build this myself or hire a team?

2:36 PM

Based on your idea's complexity and 3-6 months, here's my recommendation:

Technical Strategy:

  • Start with no-code tools for rapid prototyping
  • Consider your technical background and available $1,000-$10,000
  • Plan for scalability from day one

I can help you create a detailed technical roadmap and resource allocation plan...

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Similar Ideas

Artist-Centric Royalty Distribution Platform

The introduction of an artist-centric royalty distribution platform could revolutionize how royalties are allocated in the music streaming industry. By implementing a user-centric model, each listener's subscription fee would be divided only among the artists they actively engage with, ensuring that niche and emerging artists receive fair compensation for their work. This platform could leverage existing streaming services like Spotify or Apple Music to create a new revenue stream that aligns more closely with the interests of both fans and artists. The target audience for this platform would be independent artists and small record labels who are seeking more equitable monetization strategies. The opportunity lies in addressing the shortcomings of current models while fostering a more inclusive music ecosystem.