Case Studies

Business Challenge

Our client is a leading independent merchant-oriented financial and strategic advisory firm, specializing in the valuation and forecasting of assets across Media & Entertainment sub-sectors, including film & television, music, literary works, video games, sports, and related intellectual property. Their primary focus is to help businesses from middle market firms to Fortune 500 companies to identify, quantify, and maximize the potential value of entertainment assets. 

Music royalty payments come from multiple sources, such as streaming platforms, performance rights organizations, and licensing agreements. However, this data is often fragmented, inconsistent, and prone to errors due to manual processing. Investors, banks, and artists struggle with: 

• Disparate Data Sources: Royalty information is scattered across various reporting platforms.
• Human Error: Manual data collection and analysis lead to discrepancies.
• Lack of Standardization: Financial reporting varies widely, making valuation complex.
• Limited Analytical Tools: Existing processes lack dynamic visualizations and forecasting capabilities.

The client sought a data-driven solution that would consolidate royalty reports into a single platform, improving accuracy, reducing errors, and creating industry-wide reporting standards. 

SMAC Apps Solution 

SMAC Apps developed an automated platform designed to aggregate song-level metadata, minimize human error, and establish industry standards for royalty reporting and valuation. The system integrates advanced database technologies, machine learning, and Power BI capabilities to provide accurate, insightful, and scalable financial reports. 

Key Features & Capabilities 

1. Automated Data Collection & Cleansing: Eliminates manual entry errors and ensures royalty statements are accurate.
2. Metadata Aggregation: Consolidates missing song-level metadata for precise financial valuation.
3. Standardized Reporting: Establishes consistency in financial disclosures using pre-built Numerro templates.
4. Error Detection & Anomaly Flagging: Identifies discrepancies in royalty statements and highlights financial risks.
5. Custom Dashboards & Visualization: Provides interactive, immersive reporting through Power BI.
6. Historical Royalty Analysis: Enables detailed insights into revenue trends across different platforms.
7. Royalty Rate Calculations: Uses weighted averages to determine payout trends across streaming services.
8. Custom Filtering & Drill-Down: Users can filter and refine reports for granular financial analysis.
9. Secure Collaboration & Report Sharing: Ensures efficient distribution of insights within investment teams.

Conclusion

SMAC Apps successfully modernized music royalty financial reporting for the client. The system not only eliminates inefficiencies but also establishes a standardized framework for royalty valuation, enhanced forecasting, and strategic decision-making, while simultaneously streamlining data workflows, enhancing reporting speed, and creating a robust infrastructure for future growth.