Streamlining Licensed Music for Games: Styngr's Mission

The process of incorporating licensed music into video games is notoriously complex and challenging. However, California-based company Styngr is working to simplify this process. Founded in 2020, Styngr enables developers and publishers to seamlessly integrate licensed music into their games, handling negotiations with music companies on their behalf. To achieve this, Styngr has enlisted the help of Stephen Cooper, former CEO of Warner Music Group, as its chairman. During his tenure at Warner from 2011 to 2023, the company's revenue more than doubled to over $6 billion, largely due to its swift adoption of streaming under Cooper's leadership. Cooper believes that the music industry has historically been plagued by "technophobia." When Napster emerged in the late 1990s, the industry responded with lawsuits instead of exploring the potential of file sharing. Similarly, when Spotify arrived on the scene, the industry was hesitant to embrace it. As an outsider to the music industry, Cooper was able to approach the situation with a fresh perspective. When Spotify launched, he encouraged his team at Warner to fully embrace the platform, recognizing that renting access to the world's music for $10 a month was a more viable option than selling individual albums. The music industry has gradually come to recognize the opportunities presented by the video gaming sector, although the process of securing licensed music remains mired in bureaucracy. Alex Tarrand, co-founder of Styngr, explains that the typical "sync" licensing model used in video games involves licensing a music track for use with specific visual content, such as an advertisement, film, or game. However, securing a sync license can be a lengthy and expensive process, involving multiple parties and requiring significant agreement. Cooper agrees that the process is convoluted, particularly on the music publishing side, where rights are often fragmented among multiple distributors. Any party involved in the process can potentially block the entire deal, making it a "super complex, highly lawyered" operation. As a result, games companies often question the value added by licensed music, while the music industry overvalues its contribution to gaming. Cooper believes that by streamlining the process, there is huge potential for the use of licensed music in games. When users have the opportunity to incorporate their preferred music into games, it enhances the user experience, extends session length, and improves retention. Styngr has built technology that connects the music and game industries, allowing developers to easily integrate licensed music into their games. The company negotiates blanket deals with major and indie labels, distributing millions of music tracks and handling complex tasks such as royalty reporting and usage tracking. The music streams are eligible for the Billboard charts, providing valuable data for the recorded music industry. Styngr's technology also enables game developers to gain insights into user preferences, creating a valuable source of data for the music industry. Styngr's applications extend beyond user-generated content ecosystems, with potential uses in sports titles, fantasy games, and other genres. The company is exploring various revenue models, including creator revenue sharing, user payments for specific music, and advertising-supported free music streams. Ultimately, Cooper believes that Styngr's innovative approach to connecting the music and gaming industries could be transformative for both sectors, enabling them to exchange benefits and create new opportunities.