Case Study: Warner Music Group Goes Digital

Challenge: Process Royalties Without Knowing the “Rules”

Warner Music Group (WMG) needed to be able to process publisher royalties for digitally distributed music as soon as the new subscription service (MusicNet.com) rolled out. However, the industry had not fully defined the rules for this type of distribution. WMG needed to maintain royalty rates by the song, and keep the list of selections available for downloading. In addition, the data had to be stored in an Oracle database to be compatible with the existing WMG systems.

Solution: SPR Adapts to a Changing Landscape

RBZ&A looked at the options the industry was considering for the rules related to the new distribution method, and developed the flexible Subscription Publisher Royalty (SPR) system. SPR can calculate publisher royalties based on statutory rates that can be expressed in many forms. From old-world penny rates through a percentage of receipts, the flexible system can accommodate the changing needs of the industry.

RBZ&A created SPR from start to delivery in four months, allowing Warner to complete the compulsory reporting before the critical deadline. In spite of the tight time constraints, the project was completed within the established budget.

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