Matter
For the Culture
Music streaming is unprofitable, filled with rent seeking actors, and does little to empower the artists
The legacy structures of the industry hampers profitability
We are nowhere.
- Spotify has only ever had 1 profitable quarter due to increased COGS from highly active users. ³
- Sony, Universal, and Warner all divested in Spotify. ⁴
- Soundcloud is a dead platform. ⁵
- The community died after artists migrated because Soundcloud didn't provide monetization.
What is the future of music streaming?
Enter:
Matter
Our technology automates the licensing and publishing process for distributing music
Paying creators 10x faster and preventing cuts from rent-seeking actors
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:
Our vision sets us apart
Matter provides a frictionless transfer of value between artists and listeners, automating all third party interactions, and removing cross platform engagement slippage
Our roots are in the music industry. We have experienced major problems with the current structure and realized the opportunity to transform the industry infrastructure from the ground up.
By focusing on the future and creating a platform that allows people to interact within music, we are creating a community that has never existed before. We built a platform for an underserved market segment that is poised to become the largest.
By aligning monetary incentives for all creators and fans, no incumbent can directly compete. In doing so, we are eliminating opaque supply chains, rent-seeking actors, and exploitative agents.
Core Addressable Market
0.5% of our core addressable US market represents the conversion of ⅙ the people who follow our initial artists on Soundcloud.
Matter Makes Streaming Profitable
Furthermore, based on the initial artist onboarding and the velocity of new artists signing on to the platform, 2.5% is accomplishable within the first year.
This limited outreach to artists and their participation not only reflects loyalty to the platform, but the scale of the market opportunity and our ability to capitalize.
Turning Indie into Billions
9 of today’s top 25 artists were discovered on Soundcloud. In 2014-2016 Soundcloud was able to provide necessary engagement between artists to propel careers.
Where will the next Post Malone be found? The answer is Matter.
Independents are the fastest growing sector of the global recorded music industry, accounting for 39.9% of global streams.
Matter creates a platform shaped by the needs of the independent creator.
Making artist to listener engagement frictionless, Matter is positioned to dominate the global streaming market of the 2020's.
Artist Engagement
Artist growth on closed Alpha
-
average time spent on the platform has been 30% higher than leading competitors
-
average pages viewed per session = 29.3
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7 day k factor = 1.7
-
With only 200 invites sent for testing, each artist is organically bringing on almost 2 more per week.
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Private Alpha Traction
30m monthly
streams on Spotify
3m followers
on Soundcloud
1.5m followers
on Twitter following
4.5m followers
on Instagram
If we went live today, we could capture our artists' fans:
Why do our users
us?
Stream exclusive content
Chat with your community
Buy artist's merchandise
Directly Support their favorite creators
As a user
Direct uploads for monetization
Distribute streaming payments across collaborators
Host livestreams or use the marketplace to monetize more from your biggest fans
Use Analytics to improve engagement
Connect with Artists globally
As an artist
Paul Meed: CEO
Created and sold his cryptocurrency trading firm, then got over 5 million streams with his first releases as an independent artist.
Ryan Klaus: COO
Lead 98% yoy sales growth at Neighborly and 400% yoy growth at Sangha leading to his first successful exit.
Josh Pan: Creative Director
MBA graduate and active musician signed to OWSLA, a top electronic label founded by Skrillex. Hear his music on EA’s Fifa 19.
Boris Adimov: CTO
Years of experience building and shipping promotional websites, complex services, startups and mobile apps.
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.
We are raising $4 million
bringing Matter past product market fit
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Full-time engineering team
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Product Marketing
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2 strategic hires: VP of music and Senior UI/UX developer
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Team development
Appendix
6-month Launch Plan
1/17
Private
Alpha
2/7
Artist Onboarding
Launch of streaming features
3/1
User onboarding
Launch of social features Bring initial users into the Private Alpha. Enable them to invite 5 friends with referrals
5/1
Paid Subscription
Completion of mUSD integration to be used in weekly smart contract distributions
5/1
Shop
Completion of digital marketplace and commerce stimulus plan
6/1
IOS + Launch
Completion of iOS media player . Launch of shop, iOS and platform monetization, proprietary sync listening
Initial invites sent
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.
Matter’s platform analytics support high daily activity for its users who spend 83 minutes per day listening to music. Because their cost of goods is agnostic to user activity, Matter is able to broaden product scope to make even more money.
Matter’s community-first approach enables the company to enter adjacent verticals, driving platform revenue and increasing monetization opportunities for creators, thus further establishing a deeper wedge between us and our competitors.
The network
enables revenue
Diversified Revenue Streams
We convert high activity users into fuel for what will be the highest volume music commerce market in the world.
Matter first focuses on creating a comfortable and community-oriented streaming platform in order to support the average American, who spends 5 hours a day listening to music. Doing so, allows them to solve one of the worst commercial conversion rates across the internet; artists selling goods and services to their fans.
While creators receive a majority of their impressions where their content is published, they ultimately fail at driving this traffic to off-platform commerce channels.
Matter provides an opportunity for artists to instantly sell to their biggest fans while avoiding click falloff. In the marketplace, they can offer goods such as merchandise, tickets, beats, and gear as well as services like mixing, mastering, features, and cover art. Along with limitless 'live sessions', where artists stream exclusive content like behind the scenes, q&a interviews, intimate acoustic shows, or even a 1 on 1 video lessons.
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
Smart Contract Revenue Distribution
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
Pricing model
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Non fixated payouts
Paradox of high activity platforms is non-linearity of cost of goods vs. subscription revenue
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Reducing several layers of “middlemen”
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Aggregate several industry value props at lower price
Rounds of funding completed by direct competitors
Spotify
24
Pandora
10
Soundcloud
9
Matter is operationally profitable from streaming alone after capturing 0.026% of their core addressable US market. Matter will not need further rounds of funding in any foreseeable future.
Strong results with only $350k spent
5,180 hours of development
3 platform designs and iterations
1 re-brand
NAL draft 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
Building the infrastructure for a fully digital industry
The platform
Investors and Advisors
Sonic Ark Publishing LLC
The initial backer and investor that took Old Dominion from a bar band to one of the largest touring bands in the world
TXV Partners
Alan Loudermilk
- Patent Attorney
- Founder 511 Technologies
- President Spectral Sensors