Streamlining Licensed Music for Games: Styngr's Mission

The process of integrating licensed music into video games is notoriously complicated. However, California-based Styngr is working to simplify this process for developers and publishers. Founded in 2020, the company aims to facilitate seamless music integration, handling negotiations with music companies on behalf of game creators. To achieve this, Styngr has appointed Stephen Cooper, former CEO of Warner Music Group, as its chairman. Cooper's experience at Warner, where he oversaw a significant revenue increase to over $6 billion, will be invaluable in navigating the complex music licensing landscape. Historically, the music industry has been wary of technological advancements, but Cooper believes that embracing innovation is key to success. He notes that when Spotify emerged, the music industry was initially hesitant, but ultimately, streaming became a crucial part of the business. The music industry has gradually opened up to the gaming sector, but the process of securing licensed music remains mired in bureaucracy. Typically, a 'sync' licensing model is used, where a music track is licensed for use with specific visual content. However, this process is time-consuming and expensive, involving multiple entities, including labels, publishers, and composers. Cooper agrees that the process is convoluted, particularly on the music publishing side, where rights are often fragmented among multiple distributors. Any party involved can block the entire process, making it a 'super complex, highly lawyered' operation. Games companies often question the value added by licensed music, and Cooper believes that the music industry overvalues its contribution, while the gaming industry undervalues the impact of music on the user experience. However, if the process can be simplified, Cooper sees huge potential for licensed music in games, particularly in online games with user-generated content. This could also provide valuable data for the music industry, offering insights into how artists are received and how music is discovered. Styngr's co-founder, Alex Tarrand, describes himself as the 'platform and tools guy,' having previously worked on mobile game advertising platforms. The other co-founder, Oleg Butenko, comes from the world of music and gaming. The pair had worked together on a prior project and recognized the need for a technical interface between the music and gaming industries. Styngr has built technology that connects the two industries, allowing game developers to easily integrate licensed music into their titles. The company negotiates blanket deals with major and indie labels, distributing millions of music tracks to game publishers. This approach simplifies the process for game developers, who no longer need to directly negotiate sync licenses with music publishers for individual games and songs. Styngr handles the complex aspects of music licensing, including royalty reporting and usage tracking. The company's technology also provides valuable insights for game developers, allowing them to understand what their users like and tailor their music offerings accordingly. In terms of how the music is used within games, there are various options, ranging from in-game radio stations to user-curated playlists. The music streams are eligible for the Billboard charts, which is significant for the recorded music industry. Styngr's technology is being used in several gaming ecosystems, including Roblox and Minecraft. The company offers different revenue models, including a percentage-based system for creators and a user-paid model for specific music tracks. Cooper believes that Styngr's approach could be transformative for both the music and gaming industries, enabling them to work together more effectively and exchange benefits.