Empowering Creators

The music industry generates

$140M

only capture 12% of the revenue their work creates

but content creators and their teams 

per day

Matter
reduces
the friction
between
creators
& fans

Our technology
brings them closer together

media distribution leveraging proprietary payment fabric

Providing creators software
to efficiently run their business

contextual commerce through immersive user experiences

critical infrastructure 
for creators to make more money at every stage

+

=

1. Bi-Partisan Congressional Support

2. Working with the Recording Academy

  • Ted Budd

  • Warren Davidson

  • Tom Emmer

  • Marsha Blackburn

"Matter is the technical embodiment of the Music Modernization Act"

Shaping Blockchain
Policy
through

The following are willing to sign a letter in support of us to the SEC

3. Gaining SEC Approval

In the process to receive
the first No-Action Letter
in Blockchain

  • French Hill

  • Lamar Alexander

  • Lindsay Graham

  • Bill Huizenga

Matter fills a value gap.

Delivering value to an underserved
market segment that will be the
largest sector of the music industry
in the next five years

By providing ideal solutions to early stage creators, we grow with them as a platform and capture more lifetime value per user. 

 

Why do we Matter
right now?

$51.1B

music industry market cap

$15.3B

indie music
market cap

30% YOY

indie music
industry growth

95% of creators are independent,

neglected, and underserved

2.7x

Independent music fans spend

more than the average fan

3M

We have direct access to

loyal fans through our partners

Getting to 500k users requires converting just  
of the audience we already have access to

Matter Makes Streaming Profitable

Monthly Revenue Assumptions

Subscribers

10,000

50,000

100,000

500,000

Subscription Revenue

Commerce Revenue

$29,900

$162,200

Gross Revenue

Net Revenue

$192,100

$43,241

$149,500

$811,000

$960,500

$216,205

$299,0 00

$1,622,000

$1,921,000

$432,410

$1,495,000

$16,220,000

$19,210,000

$4,324,200

*Break even point = 0,024667% = 26,000 users

**Excluding SG&R expenses

Paul Meed
Co-CEO

Created and sold his cryptocurrency trading firm, then got over 5 million streams with his first releases as an independent artist.

Ryan Klaus
Co-CEO

Lead 98% yoy sales growth at Neighborly and 400% yoy growth at Sangha leading to his first successful exit.

Zach Farnum
Head of Music

Music industry entrepreneur who represents major musicians including Randy Travis and Jerry Lee Lewis. Deep experience securing media placements, managing artists, and booking events

Boris Adimov 
CTO

Years of experience in building and shipping mobile apps, startups, complex services, and promotional websites

Bogdan Kovtun:
VP of Engineering

With over 20,000 career hours spent as a backend developer, he is practically a machine himself.

Here’s who we are

 

Tigran Tumasov ​
Product Manager

Exceptional productivity and problem-solving skills combined with outside-the-box thinking to design the best possible product.

What we have built now

What is under development

Platform as a Service

We are raising 
$2.7 million
 ​

Bringing Matter past
product market fit

— Exclusive content partnerships to grow to 10k weekly active users

— 12 months of full-time engineering focus to take platform into monetization

— 2 strategic hires: Head of music and Senior UI/UX developer

— Strategic marketplace launch

— Establish a physical location for team and expansion

Road Map

Jan

Private

Alpha

Feb

Creator

On-boarding

Launch of streaming features

June

Soft Launch

Launch of social features Bring initial users into the Private Alpha.

May

Live Payments

Completion  of mUSD integration to be used in weekly smart contract distributions

July

Shop

Completion of digital marketplace and commerce stimulus plan

Sep

IOS + Launch

 

Completion of iOS media player. Launch of shop, iOS and platform monetization, proprietary sync listening

Initial invites sent

Appendix

Customer Acquisition

Our average user on a $2.99 monthly subscription plan generates $1.62 in net profits each month

 

Our median acquisition cost is $.60 per user, requiring just 1 in 30 customers to subscribe to a 1 year plan. 

How we do it?  We leverage our existing relations with cult-followed creators, and incentivize them to release week long exclusives to the platform.

 

Here’s why we are defensible

Artists already onboarded support our pricing model

 

We are addressing an unaddressed and underrepresented market. Forcing incumbents to abandon current business practices to compete on our terms

  • Our pricing model removes the uncontrollable cost of goods problem experienced by all media platforms today

  • Reducing several layers of “middlemen”, allowing us to pay creators more, faster, and transparently

  • Providing the most effective way to monetize impressions

  • Software solutions that turn independent creators into chart-topping artists 

Available non-core Growth Strategies

We convert high activity users into fuel for what will be the highest volume music commerce market in the world.

  • Finance
    • Artist banking
    • Project financing
  • Data
    • b2b analytics for labels 
  • Technology
    • Collaborative production tools
  • Merchandise
    • Design 
    • Order Fulfillment 

Blockchain driven efficiency

Data Ownership

Transparency

Scalability

Reduced Cost
​Servers

 

Payment Processing
Options

Security

Global Reach

Internet 2.0

Congressional
Support

Our blockchain platform allows best in-class:

The network
enables revenue

Smart Contract Revenue Distribution (Patent Pending)

Profit
Potential

As streaming consumption increases, incumbents are unable to absorb increasing licensing costs.

If music consumption trends continue (8.96%+ YOY), current industry leaders will be vulnerable to a company that can offer a more expansive product with lower price points.

 

Because we provide more value than just streaming, we can effectively double the margin's of industry leaders, regardless of product pricing.

 

Of the 71% of Americans who do not use music streaming, 55% cited high subscription costs as the number one reason.

 

 

*Spotify data from previous 5 years

The Breakdown

$43,000,000,000 of revenue was generated in 2018,
with over $29b going to non-content creators

 Artist Streaming Payouts

Are you able to earn minimum wage?

With the advent of the digital age, artists have been unable to monetize their work. Forcing them to come up with other ways to make ends meet. Such as performing live shows and selling merchandise.

**artists typically only receive distributions every 3-6 months.

Structure
of the
Industry

 

The present internal structure of the music industry was born when the radio was king, the record store was queen, and the labels were small and independent.

Principal Organisational
Structures of the Music
Industry

Strong results with only $350k spent

 

5,180 hours of development

 

3 platform designs and iterations

 

1 re-brand

 

Unprecedented NAL submission

 

Initial Artists with over 31,000,000 monthly streams

 

Core functionality with highly scalable codebase

Surpassing of the competitions user behavioral  analytics

Patentable IP

Investors and Advisors

Sonic Ark Publishing

TXV Partners

Alan Loudermilk

Curated Capital Group

Next Stage Partners

Edison Ventures

The Recording Academy

Keyworld

Patrick McQuown

Investors

Advisors

Citations

1. Winberg, Sampo. “Constantly Evolving Music Business: Stay Independent vs. Sign to a Label: Artist’s Point of View,” n.d., 68.

2. “The Average Person Spends Less Than $15 Per Year on Streaming Music | Digital Trends.” Accessed February 2, 2019. https://www.digitaltrends.com/music/nielsen-streaming-music-spending-news/.

3. “Spotify Just Turned the First Net Profit in Its History (but It’s Not Particularly Happy about It).” Music Business Worldwide, November 1, 2018. https://www.musicbusinessworldwide.com/spotify-just-turned-the-first-net-profit-in-its-history-and-its-not-particularly-happy-about-it/.

4. “Here’s Exactly How Many Shares the Major Labels and Merlin Bought in Spotify - and What Those Stakes Are Worth Now.” Music Business Worldwide, May 14, 2018. https://www.musicbusinessworldwide.com/heres-exactly-how-many-shares-the-major-labels-and-merlin-bought-in-spotify-and-what-we-think-those-stakes-are-worth-now/.

5. “The SoundCloud You Loved Is Doomed | Pitchfork.” Accessed February 2, 2019. https://pitchfork.com/thepitch/the-soundcloud-you-loved-is-doomed/.

7. “Declining Audience, Rising Revenue For Pandora.” Insideradio.com. Accessed February 2, 2019. http://www.insideradio.com/free/declining-audience-rising-revenue-for-pandora/article_f0f129be-9556-11e8-b009-5fa5684f0ca0.html.

8. Kafka, Peter. “Spotify Has Guaranteed to Pay Big Music Labels Billions over the next Two Years.” Recode, June 15, 2017. https://www.recode.net/2017/6/15/15807382/spotify-revenue-2016-financials-guarantee-payment-universal-merlin.

Matter seed round (b2sb)

By Fairy Mymyu

Matter seed round (b2sb)

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