U.S Senator Orrin Hatch (R-UT) ¹

Matter

Democratizing Music

The problem

in the music industry:

DISTRIBUTION

Distribution

is Ineffective

•  57% of artist revenue goes to rent-seeking distribution “partners”

• Fans want to directly engage with their favorite artists, artists want engagement methods to grow their audience

• Streaming companies struggle to be profitable

Our technology automates the licensing and publishing process for media distribution

Artists Want Transparency

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, now accounting for 39.9% of global streams.

Matter creates a platform shaped by the needs of the independent creator and consumer.  

Making artist to listener engagement frictionless, Matter is positioned to dominate the global streaming market of the 2020's. 

Music is fragmented without Matter

Alert your followers about new releases

Show exclusive content

Find fans to financially          support your content

Gain a following     

Obtain digital rights

Monetize your streams

Create revenue share contracts

Tracktrain

Content

Social

Commerce

Sell merch and apparel

Sell beats

Sell used gear

Sell tickets
​

Matter is the first hub for music

Chat with friends

Our model is scalable and runs more efficiently than incumbents

Matter can actually pay labels and artists more, giving them a massive financial incentive to use Matter’s platform rather than established incumbents.

Our engagement to consumption funnel is frictionless. 

By removing vulnerability of COGS for high activity users, Matter is able to capture billions in untapped music market share through its simplistic approach for social and commerce verticals.

We’ve been able to build the perfect platform by listening to what people really want. The bands, rappers, producers, engineers, designers, managers, promoters, labels, and fans who have been neglected until now.

Stream exclusive content

Chat with your community

Buy artist's merchandise

As a user

Direct uploads for monetization

Monetize more from your biggest fans

Use Analytics to improve engagement

Connect with Artists globally

As an artist

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.

The network
enables revenue

Alpha Release

Artist growth on closed Alpha

Engagement

• average time spent on  platform has been  30% higher than leading competitors

• average pages viewed per session = 29.3

7 day k factor = 1.7

With only 200 invites sent for testing, each artist joining brings on 2 more artists

$44.6 billion

In 2017,

$156 per year

of which the average US person over the age of 13 spent

 was spent on music,

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 can capture our initial artists' fans:

*Break even point = 0.024667% = 26,000 users

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.

Diversified Revenue Streams

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

Matter creates a community-oriented streaming platform for the average American who spends 5 hours a day listening to music. Doing so, allows us to solve one of the worst commercial conversion rates across the internet; artists selling goods and services to their fans.

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 the solution 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 creative services such as mixing, mastering, features, and cover art.

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 more flexible pricing.

By providing more than just streaming to the fastest growing market segment, we effectively double the margin's of industry leaders at any price point

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

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

• Full-time engineering team

• Product Marketing

• Hire major label veteran

• Physical office​ ​

Appendix

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.

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

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

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 Breakdown

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

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.

The platform