Matter

Democratizing distribution for creators

Assumption:

Independent creators are small businesses

Small businesses need effective distribution

• Of $43 billion dollars of music revenue, only 12% goes to content creators
• Artists rely on alternate sources of income because royalty payments are made infrequently
• Independent creators don't have software to efficiently monetize or expand their audience 

Start your journey on the platform that grows with you

Enter:

Matter

Our technology automates the licensing and publishing process for distributing music

Paying creators 10x faster and preventing cuts from rent-seeking actors

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 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, we've built the first scalable payment solution for media distribution. In doing so, we are eliminating opaque supply chains, rent-seeking actors, and exploitative agents.

Music meets FinTech

Smart Contract Revenue Distribution (Patent Pending)

Delivery as a service

What we have built now

What we have under development

Core Addressable Market

Right now we have an artist audience of 3 million people

0.5% of our core addressable US market represents the conversion of ⅙ the unique audience we already have access to

Matter Makes Streaming Profitable

Furthermore, based on the initial k-factor and the velocity of new artists signing on to the platform, 2.5% is accomplishable within the first year.

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.

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. Growing 11.3% YOY.

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. 

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 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.

We are raising $4 million, ​

bringing Matter past product market fit

• Exclusive content partnerships to go from 10k to 100k monthly active users

• 6 months of full-time engineering focus to take platform into monetization

• 2 strategic hires: (ex major label) VP of music and Senior UI/UX developer

• Strategic marketplace launch with mUSD stimulus bonuses

• Establish a physical location for team and expansion

Appendix

6-month Launch Plan

1/17

Private

Alpha

2/7

Artist Onboarding

Launch of streaming features

3/10

User onboarding

Launch of social features Bring initial users into the Private Alpha. Enable them to invite 5 friends with referrals

6/1

Paid Subscription

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

6/1

Shop

Completion of digital marketplace and commerce stimulus plan

8/1

IOS + Launch

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

Initial invites sent

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
  • Banking Artists
  • Instant Payments
• Data
  • Analytics 

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.

The network
enables revenue

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:

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.

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

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

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.