Allfeat and The Future of Royalties

Three billions of royalties in 2024 will be poorly distributed and this is just because of lack of metadata management so these numbers will go to 5 billions in 2030 in the same time Indies will grow massively creating now is not an issue disability is it's not one my daughter she's doing hip-hop she can do everything with her phone when she's doing a song and shooting where has our

met she has to go to all the Distributors so now with allit you'll do it once and it will be for the eternity sponsored by all feet decentralized blockchain solutions for the music industry produced by amplitude Ventures Consulting Partners in early stage music tech today JC from all feat joins us to talk about how blockchain is transforming the music industry we dive into securing music metadata solving

royalty issues and creating new opportunities for artists and innovators I learned a ton and I'm sure you will too hey guys and welcome back to the podcast today we have JC from Al feed welcome Hey howo Jacob good I'm I've been excited about this episode we had an episode together around six months ago and you guys are building something quite interesting so a blockchain ler for the music industry

and now s naations podcast and all Feit have decided to go into a partnership um I'll tell a bit more about that in a in a few minutes but JC welcome what is Alit helps to secure and certify music metata secure and what do you say SEC explain secure and secure and certify secure and certify music medad data so

um what does that mean means that a we have built the blockchain that will help all owners to put for The Eternity in the in the blockchain there W metadata so we can discuss about what is a metadata but it means that blockchain allows uh

trustability and proof of ownerships so that's the main things yeah and most people who had been in the industry for a while would know the metad data and payment rightful payment uh even fraud is a big issue and there are technological solutions that can address this and what's really interesting about alfe as a blockchain company is you guys are specialized in music industry

what does that mean why be specialized in an industry when we when we start to build a project in 2022 white Lego um we've we were convinced about something that uh for sure the blockchain has to do something in the music industry but the CTO and I Lois and I the co-founders we said that okay we have to

find uh we have an idea in the music industry but we have to fix the two issues the blockchain and the music industry so we've made a lot of tests we have like three or four Pirates during the these three years and uh we figure out that three billions of royalties in 2024 will be non-distributed

or badly poorly distributed and this is just because of lack of metadata management and specifically for Indies for example uh so these numbers will go to Five billions in 2030 okay so it's massive in the same times Indies will grow massively because it's so easy for

an independent to look my daughter she's doing hipop she can do everything with her phone so creating now is it's not an issue disabil is it's not the one but you have to download when she's doing a song and shooting where has our metad we are there so she has to go to all the

Distributors so now with allit you'll do it once and it will be for the eternity and that's pretty smart because one of the biggest issues with the music industry is that it's a relatively old industry so there's many standards there's many processes there's a lot of politics there's been a lot of disruption to the industry which means

uh data which obviously has been a part of you know any industry as long as detalization was there um has changed so much uh which means every single country CMO you know they could have different ways of doing it and as you say yourself the bear of entry for registering your rights is also really high so practically speaking um let's say that

companies startups would build products on your blockchain um how would that work with registering rights how did that take place um the point is they will create their own profile which is the MS music industry decentralized data structure you talked about the uh the

metadata standards like DX they've made an amazing job with the w or the RT so we'll talk to this about later but will you will create in your in the blockchain all fit the mids music industry decentralized data s which actually in all English mids means reward I just know that like couple of

days ago so the needs music industry decentralized dat Str you will fill it in the blockchain that's your profile then all these videos like radios songs festivals uh podcast um streamers they will download in the chain the proof of distribution the proof of diffusion then these proof and

the means of the profile will be automatically linked or recognized so they will be able to take it and to go to the roties and say okay look the uh all the CX companies say okay we have to claim that because that's my song here not my cre my not my creation here so I'd like to claim and look in allfit I have the trustability

and this it's proof of ownership so that's how it works with allit yeah and so what does it take for you guys because now you're sort of an underlying technology that to a big degree is a neutral technology that is sort of uh catered to uh music metadata and also I can imagine from like almost like a political level can speak the language

of music so that collaborators Partners companies startups can make sure that they're tapping into an ecosystem where other music players are as well so how is that going to going to evolve over time like what is your strategy as a blockchain company to make sure that this gets adapted in the music industry first um in terms of tech purely Tech we need to

explain so that's why the lier is ongoing we need to explain really deeply how the tech is working then we have internally a consensus a new consensus which is the proof of metadata so the P this proof of metadata consensus will help

to um to say that the metadata you build in allit are real and uh accurate so we have three levels we have the providers the trust and the users the main point is on the trust it's we've build a consensus like let's put on a peck when you're

walking on the street okay you see a car coming okay for you the car is blue with four wheels and you have someone in the car okay anybody can say this you don't need to be like a professional in okay in car industry you can say that so anyone if they know the where to find

the SSC the WC or some um documentations they will be able to say yes that's accurate this data is accurate and then we have like people like we say a daos or kind a kind of community that will say yes I can confirm that these data are good or not um for all these steps we need the

current industry we need the artist or labels there we need um IPS all the guys around the control of royalties and we need all the Distributors because they will put the data and they will download efficiently in the in the blockchain so yeah it's not like the previous project said we'll do

something that will kill the third part's industry in the music industry um I'm fully convinced that we need everybody um because artists with the guitar with the piano they don't they don't they are not focusing on administrative SPS or they don't I mean sorry but they don't care and it's like they don't want

they don't they don't want because some sometimes don't have the cash they don't want to hire a lot of people just to feel the metadata so they have to externalize that so we say that uh with this consensus it gives to many indes the opportunity to create and to download for The Eternity

safely their metadata so to link everything in the industry it makes a lot of sense and I think it's only recent years where technology have caught up in a financial matter where this is possible because it's been difficult from before yeah it's like you're talking about

technology uh at the service of the music till now we can't say that we fail on that I mean we all fail on that when people um are not paying because either the metal are wrong okay but because their music are not being

distributed so many times that the distributor will say no look uh you've been disab 20 times this year so I can not pay you for € why I mean you're a company that's starting to you to create something for the music so again if my daughter is distributed by someone and

then this someone earns like even 50 cents then she has to have at least 40 cents I understand that because of the cost of the technology they cannot but through blockchains they can because the cost of the transaction in allit let's say um the industry for

example it's 0.003 okay in with Alit it's 0.000000 18 cents so it's almost nothing so again if my daughter is being played and she will she has to earn five cents at the end of the year she will yeah and it and it really speaks to the concept that the music industry

there's several guests in the podcast that describe the financial um on an abstract level how does the financials music industry uh work and there's um there's a few sentences that described this well ult which is a publisher he said uh the music industry is a penny business which means there's so many small rights incomes that just all over

the place and that is what makes up the billions of dollars so if there's not effective ways of transferring registering uh rumination on the small pennies then the system will not be effective and we will lose as he said or wrongfully uh allocate three billion if not five billion in a few years uh to rights holders and you have two problems

on that it's the first one is um as AI is coming um you need to as an artist you need to appropriate this tool you need I mean it will not replace you will use your own AI as an as an like an assistant but at the end you will be the

brain and you will create and you will use all these AI but who's feeding the AI so we definitely need this otherwise it's like we are we are not doing we are not creating solutions for the for the music industry so AI is a massive issue linked with the metadata with all it we are solving this the second point

is um all the all the new uh let's say all the new source of distribution are like booming so you had uh at the beginning you have the stream then you have now the podcast then like TT or whatever so it's coming and then you have the gamification so we have new onboarding new quite amazing tools but

okay that's awesome you know just in streams you have sorry for the one I've missed but you have U Spotify dieser angami colorf okay and you have so many but now as you have 100, um streams per day on the platform okay you have in many countries you have

like National local streamers for example you can have in Congo you can have gospels just dedicated for this and you have other countries are thinking about having local National tool so it will be duplicated and postcast podcast will be exploding so how we'll be able to fix the metata we

think that through an open- Source protocol secure for the world all eternity then it will help all the applications to download their data to fix it on the Block and to link this automatically with the profile it's really interesting and but you guys also addressing more than music licensing like last time

we talked we also talked about you know obviously your partners so that can be partners established Partners it could be new companies so the a lot of the people that are listening to this podcast are innovators um can you tell me a bit about the opportunities for example startups to build on Alpha there is one I'm completely convinced about this there is one who's coming it's the finance in

music how you will be able to split to Lo to give to receive the tracks the song um if your metadata are not accurate when this will be done efficiently then as an let's say uh an owners royalties owners I will be

able to distribute to sell to loan my creation so I'll be able to live about that so that's for I me that's in web 3 we're talking about real lwa real world asset it's like we'll be able to tokenize everything and in music it will be massive yeah songs concert we will be

able to like to cat and we you're doing this with LinkedIn YouTube all the platforms are doing this what are they doing they are all doing AWA they're spitting shorts what is short it's like AWA in the real life but in web 3 it can be monetized and second it's the um the community when you have when you are

able to sell to tr have like your own tokens you will be able to track your Community to help to onboard to gamify your community and that's the main point because in 2030 will be around 10 billions in the world how someone from China Russia Europe Africa South America

he wants to be welln in the opposite side of the of the of the Earth he has to gamify his community to gamify properly you will need tokenization you will need web M yeah and you know I've been in the music space for uh fulltime for 12 years and if there's one thing that consistently comes back into my own understanding the industry and people who wants to work in it is that the

financial aspects of Music can be um not necessarily very attractive in many different ways like one thing is financing your work so in you know it's really hard to get the uh The Upfront payment for projects or development of albums that you traditionally would go to l La for but that whole industry has also changed a lot um but it could even be like you know just personal things like you have actual assets if

you're successful strong R IP holder that you know gives you dividends or S know payout every single year but you can't loan anything against it for financial institutions and there's many things and we actually don't have time to talk all about them because there's so many implications about not having a proven transferable Financial

uh value Associated to your IP rights and it all goes back to the value of music and just to speak because I want to preach on behalf of Alie but you know one of the things that I'm very um focused on is ticketing data like you have you have artist that through years have you know sold maybe let's say hundreds of thousands of tickets and in most cases they don't have direct access

to that fan data which means their most valuable um asset is really connection and engagement with their fans but you know but data is what drives you know most big tech companies but the artist are in most cases not able to monetize that at all and this is where blockchain and especially a streamline blockchain for music industry could do some significant difference completely I mean

ticketing is the uh is the easiest simplest way to use the blockchain because ticketing you can split you don't you can there is no value on the which sides of the tickets you have but in the song you can have you got me there is some value in your song in know track so a ticket you can spit in 100

times and then say okay as long as you have this nft okay so this part of the ticket you will have more access to VIP access to I don't know whatever you want so yeah it will it will it will gives you more again it will gives you more attraction with the artist and there is one point to clearly understand

sorry we'll talk about tech just a few second today in web 2 you have a world of organization metadata structure and applications okay so when you want to claim your royalties you have a path okay it's already done but in web 3 to use all the metadata you have to use Oracle you have to use something a smart

contract that will go to all the application in web 2 in web two not just one because you need like it's a you need a big badge to be sure that this one is clear and you will unboard this to your application okay so with allit all the web three companies applications use cases will be able to

have the proper metadata directly in this blockchain or fit so that's the second Point yeah and that really also speaks to if the data was to be in the hands of the artist the monetization channels would also be very uh streamlined so the companies that are uh taking advantages is the wrong

word but enabling detis to monetize that data uh that streamlines everything and I think especially from a startup perspective building companies in music can be quite difficult because of well the same problem financing uh and if there's way to streamline the way the companies can build uh within the Super Fan space or extension of existing

companies such as ticketing or marketing I think that will give the viability of their cost um and much more sustainable um starting point um so there's many synergies here and what really it comes down to really is also the adaptation like we just talked about five minutes ago so what do you what do you perceive this the sentiment

from the music industry as you guys launch this and take it out into Market that's so funny because when we where when we made this the uh when didn't build we have build the MS we said okay that's okay it's okay we found the way we found it so in it was in February 24 okay here is the thing so we've met

uh 10 uh 10 artist 10 10 singers podcasters um okay 10 people we said okay during one day we've discussed with them and said okay we want to do that what do you think about so some of them were really Tech and some of them were like absolutely nothing n in technology but at the end they said

yes I need it because either me either me or my level but we definitely need it and what they liked at this at this time was the easiest way to do it um and one of them told me you know it's not just about talking about the current

world okay today you have 11 billions of uh royalties claim in the world okay 11 billions but the point is uh so it's one for France one from us and spit in all on the countries the thing is Africa South America Asia India are booming and they will not be able to

have squads of business developers to track all the N clubs the radios the all the Distributors say okay did you go to the royalties uh did you declare everything did you claim no so having a tool open source that will be able choose us everything to secure and certify all this then they liked it at

this time so and that's why we have 26 now it goes to 31 applications that want to use so they are web three applications they want to use allit because they don't want to deal with uh rities they don't want to do that it's not their job so that's why we are discussing with all this royalties

company because you said okay look there is a tool it's open source just use it that's for you that's a gift for you'll have clean and accurate M so yeah go ahead use it use it or lose it yeah I think that's very right because there's a lot of money to be lost um and it's a big issue and there's

also a lot of fraud uh in the incident and even though this does not necessarily directly Target it I think there's going to be a lot of positive um positive effects I actually had a had a that actually released recently uh at podcast with um a beat down and June Global which are big companies uh and they their latest uh research actually shows that

10% of Music streams globally is fraudulent 10% and 80% of those 10% are criminal activity uh like um you see what happens with Drake I mean that I mean you okay we all have our point of view about that okay but at the end there is something

there is something we have to you have to check and maybe the takech would be able to solve this maybe I don't know but yeah I'm convinced about that so let's see it's all about trustability property um ownership and um and being like being yeah

transparency so that's they can do this yeah it's very interesting and you know I also want to talk tell the audience a bit about why we actually doing a partnership because as sound connections have grown and we now uh sort of very top in our industry um we've been talking with several different sponsors and um off uh I've sort of been following you guys for

close to a year but what I really love about your company is how um growing the pie uh concept how that's very evident in your business model that you're about really providing value and that's what how your business is built and really solving a really big issue that haven't really been able to be solved at scale before and you guys are not promising that you'll solve the problem but what you are doing is you're actually giving the industry an

opportunity to solve it that you know as you try to drag people in the right direction uh you also enabling actually to solve it and for us that was a perfect opportunity to actually do res just your player um sounds podcast is all about entrepreneurship Innovation and the music industry and really looking at the problems so that's why we wanted to partner with you guys yeah

and talking about the Partnerships um so today as I said we have like around 30 applications that want to jump in all of it and we have around we are reaching the million of uh tracks that will be able to be in all fit the blockchain um what I realize that a lot of people ask us about the uh the business

economy of the blockchain so first let's talk about this um a blockchain is really it's like a big Excel sheet in which Excel ex uh a blockchain is a real Excel page in which you will have all your data okay but to not being act by Bots Army of bots you

have to col collateralized this uh information with the token if okay so like this it will be it will be secured in the chain this blockchain will be open source and will be given to the world as an open source like today you're going to Wikipedia okay Wikipedia you have informations everybody is doing is

writing in Wikipedia then it's let's say it's validated by the community but it's not like it's not a cash machine so we are doing the same this tool will be for the community we will build we have build sorry all fit labs and all fit Labs will help labels companies royalties companies artists in these

specifically in these to build in outfit to create their own product in allit so the business model is clear the blockchain is open source for the world industry we have built allit labs and we Alit Labs will work with all the music industry to adopt this open source tool yeah and I love that separation because that's also often times when

people from upside the music industry you guys are you know traditionally from technology and have a very close relationship with music when people come a lot from music industry it can be quite conflict of interests uh and I think at least from a business development perspective as I understand you guys you guys have seen a big issue in a certain industry and say okay with our background with our knowledge we believe that we can help address this

and sometimes that's a good thing sometimes it's a bad thing but especially in this neutral approach I think it's a really positive thing yeah I will I will give you a short story um when I met Lois in 2021 um I was so I am I have background I was in Army paratrooping then HR

management and then Finance but all this history was in data okay uh when I was on the I was knocking on the door I said okay look we're are we're trying to do this we want to do this all the people looked at us and say who are you I mean who the hell are you to try to Sol this to who you know who do you know in IND industry do you know

like big hat do you know some people there say no and that's why people then open the door because you said okay look we've taken the industry we put it on the table we try to find the way and say okay here is a way but people from the industry and we have we have this experience they came in the room and said no JC you cannot no you cannot

do that it's impossible these companies here okay we will on board them we will need them yeah but you have the authorization we will okay that's quite difficult so we have no like say the no stops in front of them we have the ability to think properly in terms

of tech distribution yeah so maybe that's why um at the beginning people just said okay look they are doing something like that's funny that's quite funny but now as it's working the test net is working we have 10,000 people that created some uh some tools in the chain we have um yeah we have 60,000 people in Twitter and we

have a lot of people around us so and in the music industry we have labels and internally we have a scientific commit people from uh royalties companies from labels from Majors from artist sites from Scientifics from Finance we have around 10 people around us and then all the team 19 people are around the world

so we have people from South America Canada developers or like just artist and the end these consensus this array of uh brainstorming gave us this amazing tool again open source that secure and certify music metadata which is which could be awesome I mean at least let's

try let's do it it's it cost nothing so let's do it yeah and I think especially as the music industry is really standing um at the AI um Paradigm Shift uh as most Industries are but you know uh to completely transparent I've spoken many times about this on on the podcast then uh we as a company amplitude

Ventures, that's behind Sound Connections podcast, we use AI tools for every single thing. We also have uh four full-time AI developers that works in certain projects, which means we're deeply immersed in AI all the time. And when we look at companies, you know, I'm just going to mention Suno that just came out with a version four of their thing, like some of the songs that I've made there, because we do a lot of experimentation, I've sent around to sort

of my network, and there's one particular song I made recently where no one, like no, even people with good ears, no one heard it was an AI. And so we standing in front of this very interesting place in the music industry. One thing is's getting prepared for the future, which is know important. Yeah, there one discussion

today is synthetic AI m today AI is using metadata, yeah. And a lot of people saying like, Okay, tomorrow AI will use AI, so AI would be the second level, so synthetic AI, yeah, okay. But in these steps, at the end, the beginning of the creation was built with accurate meta

so you will need to trace, you will, for example, your creation, um okay, you've used a lot of tracks, a lot of musical works, a lot of things um to create your song, so it can be linked, it can be. So if it, if it's a robot that training something, okay

these um these training can be tracked and should be traced through the appropriate trur metata. And I agree, uh but it just really signalizes like how much we need to this, like it's, you know, there's so many things in music that's going to change, uh and one thing we at least could get right is make sure that all

the data that pretty much, you know, all the music industry lives from, is structured in a way that's not only prove for the past, but also prove for the future. Yeah, and at the end you like to see your artist in a concert, on a podcast, to check hand, check hands, to feel, at the end we are human. So I'm agree, that's

fine, and that's awesome to have this AI, but I'm convinced about one thing, these AI will be, will start from human, and these human will be in front of his community, is uh all is, yeah all is public. So we will have concerts, that's why concert is like it's booving in a

way so concert podcast the reation you will have okay but who will you invite you will invite your AI no you will have people that use the AI so yeah it's that's the HP today it's like the HP in nfts you know many companies raise like 7 million 8 million n millions and now they're dying or

that's funny, they are dying after raising seven, eight, n 10 millions, and now they are going to AI, say oh look, we have a wonderful product in AI. That's all ipes, okay, so that's normal, that's normal, it's adoption of technology. But then when everything will go smoothly, I think AI will be used as an

assistant, but the main point, the main creator, will be the person, the main one. I agree. So interesting. So you guys are touching upon something very important, and I think what's really important for the music industry is to take a standpoint of what are we going to do about this. And for public solutions, there are very few options. And you guys, even though

blockchain has been around for a long time, and yeah uh okay, talking about longterm, that's a point um why today we say that by the industry in different countries say that okay, after 70 years, after 80 years, after 90 years, after 50 years, your royalties is down

why? Because of tech, because of Lego, because of whatever. At the end, your creat, your what you've created, will be asked in the chin for The Eternity. So your son, your grandson, all the people that are linked with your family, as you are the creator

will be able to track it. So it, even if it, even if my grandson will earn like I don't know 10 bucks for what I've built, I will be happy. I'll give this to my to my family. So that's another thing. I mean, I'm whatever your age, we don't care, I mean you don't mind

you have like uh your met in the black Shain outfit for The Eternity, that's a gift. I mean, that's something very strong, uh um and that's another thing that is being able, just because it's a blockchain, and it's a bit complicated with the with the standard in the web 2, because people have to understand that the adaption is coming

the adaption of web 3 is coming, for just one thing. So BL, um sorry, web one was I'm creating blog, I'm sending the information in the web, okay. Then you have web two, I'm creating, I'm writing an information, I'm sending to someone, and this guy will is able to reply. Web three

is I'm having the information with me, I'm sharing to everybody, and I'm be, I'm elow to discuss with all the people, but the information is with me, not with a third party. So that's the real objective that the will Target of allit, your data, you will be with you in the blockchain

and then Distributors will use it, or you will be able to claim it, because they will deposit the information in the blockchain, so you will own your data. And I think that's important. Again, if we look at big tech companies around the world, where is the value? Uh everything from Facebook, Google, uh even to Spottify, you know, a lot of the value

if not all of the value in some of these companies are pretty much entirely d and artists to create things that people enjoy over time and at scale should be able to monetize that as well, because there, let's be frank, there's not a lot of monetization to be had already now. Agree, and we, that's why, and that's why it took a lot of time, it took a lot

of time because we said to think about all of it, because we didn't want to say um if I'm an indie and I'm going to today, I'm going to all the streamers, all the podcast, all whatever, okay, I'm putting all my met out me or my level, but let's say to IND Indie um it takes like one or two days, it takes hours, blah BL blah, okay, then now we will

just go in the proper cycle. I'm the owner of my meta, I'm fing the needs the music industry data structure in all fit, I'm fitting this, and if someone want to distribute my song, it has to fill the information in allit, otherwise I'm moving out. And then here proof of

distribution goes to my profile, goes to my royalties. So we are thinking that it's going through the proper way, that I'm not as an indie going through all the distribution, all the concept information, oh blah, no, I'll do it once, it will take maybe one day to fill it, okay, actually it takes my maximum an hour, it will take one day to

feel properly to be certified, but then now for the internal life and for the rest of the world of my life, I know that these needs is accurate, and everybody will be able to track it, or not to track it, but everybody will be able to refer to these means. This is my ID in the

world, like do have WC and the RC, that's the same. This is great, and I'm really looking forward to adaptation in the music industry. And there's a lot, not a lot of things that I believe that I fully believe in the music industry, but what I do believe in is that technology can help solve big issues like these, but it needs to be adaptation, it needs to the music industry addresses

it. So that's my plead to people listening to this podcast, like be aware that the decisions your companies are doing, uh un organizations, whoever is managing your rights, move towards technology to make sure that this is, this is resolved, because it's not just about the small extra streams of money, it's about the whole infrastructure and how we can make this a better place to be a

Creator. We yeah fi um adaption is the key um if you want to do something new, it's not just like 10% better than the old one, otherwise people will not just, you have like okay quite good G geek, but no, you need adoption. To have the adoption, you need

to incentive the people that will jump at the ear, at the ear stage. So that's the other thing, we will reward at for the first year, we will reward strongly all the first users, because we know that it's useful, and all the guyss that will jump, we know that will stay, because we have a lot of discussion, and each time

we have a, you have to see the eyes, wow yes, that's we need this. And you, I'm nothing if tomorrow me or my co-founder Lois we are dying, that's okay, the foundation is uping Street on, anybody can jump in the foundation and say okay, let's move forward, and the code now is written, we have 15,000 lines of

codes, it's done, it's over, it's ready to launch foundation for the public industry, for the music industry, and for the public of Music Industry. So there is zero risk just to test, so then we will on board people and we will reward them uh through uh through the blockchain uh

industry. That's great. Well I'm very happy to be partner with you guys, and me and my team are quite excited about what you guys do, so we feel like this is a perfect alignment with how we see the world changing as well. So JC, thank you again for being on the S con podcast, people can see you guys name on every single episode for the foreseeable future um and I support you guys, so uh I hope that the rest of the

industry will would do as well, and I look forward to the next many years of adaptation of technology to solve big issues in our industry with a low area of Entry. Thank you Jacob, still a pleasure