SOCAN is transferring its business intrests in MediaNet to Audible Magic.
The new deal will see the firm, which offers identification and compliance solutions around user-generated content on social media, take over the related content fulfilment and rights administration from the Canadian performing rights organisation.
“The acquisition of the MediaNet services by Audible Magic creates long-term benefits for SOCAN’s members and clients,” said Jennifer Brown, interim CEO of SOCAN. “Audible Magic is a knowledgeable and skilled company and we’re looking forward to working together to improve the accuracy of reporting to publishers and songwriters.”
SOCAN acquired the Seattle-based MediaNet in 2016. It offers 'white label' services to internet radio, subscription music services and on-demand streaming, along with support for fitness and gaming applications.
“Rightsholders and platforms will both benefit from our combined solution and will reduce the time and complexity of managing and paying for the use of music,” said Vance Ikezoye, Audible Magic chief executive officer. “We see significant upside in enabling incremental revenues for the music ecosystem.”
Last year Audible Magic authored a report with MIDiA Research which forecast that music-related UGC advertising revenue would grow into a significant revenue stream for the music industry over the next three years.