Business Model Presentation For Reservoir Media Inc.

Music Business Models: Company Business Model presentation for Reservoir Media Inc.

1. Company Business Model Presentation
Week 3 Group Assignment
06/22/2025
Class: Music Business Models - Online
Group Members:
Samuel Manago
William Alexander
Dentavies Towns
Kimberly Spruel

2. Customer Segments

3. Customer segment
1.Music Supervisors: Professionals responsible for selecting music for film, television, and
commercials.
2. Brands and Advertisers: Companies that use music in their advertising campaigns.
3. Streaming Platforms: Online music services, such as Spotify, Apple Music, and YouTube Music.
Reservoir Media's customer segments are primarily composed of film, television, advertising, and
digital media industries. Specifically, film accounts for about 35% of their customer base, television
is around 28%, advertising makes up about 22%, and digital media is roughly 15%. These segments
have diverse music licensing needs, with average contract values starting at around $75,000. The
company serves multiple industry segments with varying demands.
- Geographic: Global, serving clients in film, TV, advertising, and digital media across various
regions, with a significant presence in major markets like the US, Europe, and potentially expanding
into other territories.
- Psychographic: Creative professionals, brands, and media companies looking for high-quality,
diverse music that fits their projects' emotional tone, style, and budget. They likely value originality,
flexibility in licensing, and strong copyright management.
- Demographic: Music supervisors, producers, directors, advertising agencies, streaming
platforms, and other media companies that require music for their projects. These could range from
large studios to independent creators.
N.a(2025, June 19)Reservoir Media, Inc. (RSVR) – Marketing mix: Price. https://dcfmodeling.com/products/rsvr-porters-five-forces-analysis

4. Value
Propositions

5. Value Proposition
•Cross-Platform Licensing: Provides licensing for film, TV, games,
and advertising, expanding artist visibility.
•Global Reach: Operates in key markets (U.S., U.K., Middle East,
etc.) for broader sync and publishing opportunities.
•Boutique Service with Major Capabilities: Delivers the flexibility of
an indie with the infrastructure of a major label.
•

6. Value Proposition
•Maximizing Artist Revenue: Offers global monetization and
rights management across publishing and recorded music.
•Creative Empowerment : Supports songwriters, producers,
and artists with A&R, sync placement, and career
development.
•Catalog Strength: Holds rights to over 150,000 copyrights,
including works by Joni Mitchell, Migos, and 2 Chainz.
•

7. Channels

8. Channels
•Digital Platforms:
Reservoir distributes music and licenses through major digital streaming platforms
(DSPs) such as Spotify, Apple Music, Amazon Music, and YouTube, ensuring global
reach and monetization of its catalog.
•Sync Licensing:
The company works with film studios, TV networks, advertising agencies, and video
game developers to place music in multimedia content, expanding visibility and
revenue for its artists and copyrights.
•Direct Licensing:
Reservoir engages in custom licensing deals directly with broadcasters, commercial
brands, and tech companies, bypassing intermediaries for greater control and profit.
•

9. Revenue Streams

10. Reservoir Media
primarily makes
money from music
publishing and
recorded music.
They acquire and manage copyrights and
recordings, then license theses rights for various
uses.

11. Music Publishing
Revenue by Type:Digital
Performance
Synchronization
Mechanical
Other

12. Recorded Music
Revenue by Type:Digital
Physical
Neighboring Rights
Synchronization

13. Recorded Music
The synchronization revenue in the fourth quarter of fiscal year 2025 was $0.7
million, a decrease of 29% compared to $0.9 million in the last fiscal year’s fourth
quarter.

14. Synchronization Revenue Expenses
Negotiation Costs Legal Fees
Administration Sync Fees
Master-use License Fees Promotion
Maketing

15. Activities involved:
Synchronization License Revenue Stream
Music Creation and Preparation
Rights Management and Registration
Pitching and Submission
Music Supervision
Negotiation and Licensing Agreements
Rights Clearance
Payment and Royalty Collection
Monitoring and Enforcement

16. Reservoir Media Synchronization
Synchronization has played a key role in the 12% increase in Reservoir
Media’s music publishing revenue for fiscal year 2025, reaching a total
of 107.4 million.

17. Key Resources

18. Key Resources
•Extensive IP Portfolio: Over 150,000 copyrights and 36,000 master
recordings.
•Experienced Executive Team: Leadership with deep industry
connections and strategic acquisition experience.
•Tech-Driven Administration: Uses proprietary rights management
software for real-time royalty tracking and global reporting.
•Industry Relationships: Long-term partnerships with artists,
songwriters, and media licensors.
•

19. Customer Relationships

20. Customer Acquisition:
1. Networking: Building relationships with music industry professionals, songwriters, and artists to establish partnerships and
collaborations.
2. Digital Presence: Utilizing their website, social media, and online platforms to showcase their catalog, services, and success
stories.
3. Content Marketing: Creating informative content (blog posts, videos, podcasts) on music publishing, songwriting, and industry
trends to attract potential customers.
4. Referrals: Encouraging existing clients to refer new business through incentives or rewards.
5. Industry Events: Participating in conferences, festivals, and workshops to connect with potential customers and promote their
services.
Customer Retention:
1. Personalized Support: Offering dedicated account managers or support teams to cater to clients' specific needs.
2. Regular Communication: Keeping clients informed about new opportunities, placements, and industry developments.
3. Value-Added Services: Providing additional services like songwriting camps, workshops, or pitch sessions to enhance client
relationships.
4. Royalties and Payment Management: Ensuring timely and accurate payment of royalties to clients.
5. Feedback and Support: Gathering feedback from clients to improve services and address concerns.
Some specific strategies Reservoir Media uses include:
- Collaborating with music producers, artists, and songwriters to create new content
- Utilizing data analytics to identify trends and opportunities in the music industry
- Offering exclusive deals or partnerships with popular artists or labels
- Developing educational resources or workshops to help clients improve their craft
Customer relationship

21. Key Activities

22. Key Activities
Reservoir Media specializes in song publication, recording, and rights
management. One of its key activities is music publishing administration. The
company represents over 150,000 copyrights across several genres and
decades, managing licensing and collecting royalties for songwriters and
composers.
The company also represents a multitude of recorded music through Chrysalis
Records, Tommy Boy Music, and Philly Groove Records and manages artists
through its ventures with Blue Raincoat Music and Big Life Management
(Reservoir Media, 2025)
Reservoir's film music library includes rights to Hans Zimmer's compositions,
such as The Lion King, the Pirates of the Caribbean series, Gladiator, The Dark
Knight Trilogy, and more than 150 more!

23. Key Partnership

24. Key Partnerships
Reservoir Media has several key partnerships. Here are just a few and a brief overview of their
roles:
•PopArabia (MENA): (Sub-publishing + Arabic music JV) The partnership put Spek back as President of
PopArabia and leading Reservoir’s international and emerging markets strategy, including the signing and
development of local talent and export of Arabic and international music around the world (Kaylie, 2020)
•Outdustry (China/India): (Market access + local talent dev) The deal saw Reservoir investing as a minority
partner in Outdustry to build on its successes in China and India and extend its strategy to other emerging
music markets. The companies formed a joint venture to sign and develop Chinese artists and songwriters,
plus acquire local music catalogs (Reservoir, 2021)
• Adaptr/Feed Media Group: (Licensing for apps/games) Adaptr provides an end-to-end solution for
startups and emerging app developers see king to integrate music quickly and legally into digital
experiences, including fitness apps, games, and social media. The plug-and-play platform is equipped with a
pre-cleared catalog of music and tools, including streaming infrastructure, reporting, and royalty payments
(Kiernan, 2021)

25. Key Partnerships
Reservoir Media has several key partnerships. Here are just a few and
a brief overview of their roles:
•One Riot (Nashville): (Americana & Roots music) The two companies joined forces to sign, develop, and
look after the catalogs of songwriters (Kaylie, 2020)
•Audio Up – (Audio/podcast): The investment helped Audio Up build its ecosystem of premium
entertainment content within the music and audio space. In addition, Reservoir and Audio Up worked
together on collaborative audio entertainment projects using Reservoir’s catalog of copyrights. (Reservoir,
2021)
•19 Entertainment – (Artist JV, e.g., Wé Ani): publishing deal through a joint venture with American Idol
producers 19 Entertainment. (James, 2023)

26. Cost Structure

27. 1. Content Acquisition Costs: Reservoir Media pays upfront fees to acquire musical compositions from songwriters and publishers.
2. Royalty Payments: The company pays royalties to songwriters and publishers based on the revenue generated from the use of
their compositions.
3. Operational Costs: Salaries, office expenses, marketing, and administrative costs.
4. Licensing and Distribution Fees: Fees paid to third-party licensing platforms, collection societies, and distributors.
Reservoir Media is a music publishing and recording company. To estimate the fixed and variable costs required to operate a
company like Reservoir Media, we'll need to break down the costs into several categories. Please note that these estimates may vary
depending on the size and scope of the operation.
Fixed Costs:
1. Office Space Rental: $2,000 - $5,000 per month (depending on location and size)
2. Salaries and Benefits: $50,000 - $100,000 per month (for employees, including admin, A&R, marketing, and finance)
3. Insurance: $1,000 - $3,000 per month (liability, property, and workers' comp)
4. Software and Subscription Fees: $1,000 - $3,000 per month (music metadata management, rights management, accounting, etc.)
5. Marketing and Advertising: $2,000 - $5,000 per month (online advertising, promotional materials, etc.)
Variable Costs:
1. Royalty Payments: 50% - 85% of revenue (depending on contracts with songwriters and artists)
2. Sync Licensing Fees: variable (dependent on specific licenses and placements)
3. Music Acquisition Costs: variable (dependent on the cost of acquiring music catalogs or individual songs)
4. Travel and Entertainment: $1,000 - $5,000 per month (depending on
Cost structure

28. Future Opportunity

30. Music-themed podcasts
- *Industry Trends*: "Music industry trends and insights can
be shared through podcasting, offering a unique platform for
industry professionals to connect with a wider audience."
(Pedersen, 2017, p. 12)
- *Artist Stories*: "Podcasts have become a popular
medium for storytelling in the music industry, allowing
artists to share their experiences and connect with fans."
(Morris, 2020, p. 45)
Creating a podcast discussing music industry trends, artist
stories, or behind-the-scenes insights.

31. Artist Development Programs
- *Mentorship and Resources*: "Artist development
programs are crucial for emerging artists, providing them with
the necessary skills and industry knowledge to succeed."
(Burnard, 2012, p. 78)
- *Networking Opportunities*: "Networking is a key
component of artist development, allowing emerging artists to
build relationships with industry professionals." (Hracs, 2015,
p. 102)
Offering mentorship, production resources, or
networking opportunities for emerging artists.

32. Music-Based Online Courses
- *Music Production and Business Skills*: "Online
courses can provide musicians with the skills and
knowledge needed to succeed in the music industry, from
production to business management." (Thompson, 2019, p.
23)
Developing educational content teaching music
production, songwriting, or music business skills.

33. Music Merchandise
- *Branded Merchandise*: "Merchandise has long been a
vital revenue stream for artists, allowing them to monetize
their brand and connect with fans." (Marshall, 2013, p. 134)
Selling branded or artist-specific merchandise, like clothing or
accessories.

34. Music-Driven Events
- *Concerts and Festivals*: "Live music events are a
significant source of revenue for the music industry,
offering artists opportunities to perform and connect with
audiences." (Page & Carey, 2011, p. 56)
Hosting concerts, festivals, or music industry
conferences.

35. References:
Reservoir Portal
https://identity.vistex.com/login?signin=a3fafdab10211e8ccec96645e8d81055
_Pedersen, I. (2017). Podcasting and Music Industries. International Journal of
Music Business Research, 6(1), 5-18._
_Morris, J. W. (2020). Music, Media, and the Digital Economy. Oxford University
Press._
_Burnard, P. (2012). Musical Creativities in Practice. Oxford University Press._
_Hracs, B. J. (2015). Cultural Industries and the Entrepreneurial
Self. In Entrepreneurship in the Creative and Cultural Industries
(pp. 95-110)_
_Thompson, P. (2019). The Musician's Guide to the Digital Age. Routledge._ 
_Marshall, L. (2013). The Ownership of Music. In The International Journal of Music
Business Research, 2(2), 127-144._

36. References
Reservoir Portal
https://identity.vistex.com/login?signin=f3d926b4a9dce026e085f072ddaa2cbf
Reservoir Media (2025, May). Reservoir Media Announces Fourth Quarter and Fiscal Year 2025
Results https://investors.reservoir-media.com/en/news-detail/reservoir-media-
announces-fourth-quarter-and-fiscal-year-2025-results/133e846c-6a08-47dd-88c7-f63a1f01764a
Stassen, M. (2025, May 28). Reservoir spent $115m+ on acquisitions and advances in…
https://www.musicbusinessworldwide.com/reservoir-spent-115m-on-acquisitions-and-
advances-in-its-latest-fiscal-year-while-its-revenues-jumped-10-yoy-to-158-7m/
Page, W., & Carey, C. (2011). Adding up the Music Industry Numbers. In Economic
Insight Series (pp. 1-64). PRS for Music._

37. References
James, S. (2023, October 16).  RESERVOIR SIGNS WÉ ANI VIA PARTNERSHIP WITH AMERICAN IDOL AND 19 ENTERTAINMENT . Reservoir
Media.  https://www.reservoir-media.com/reservoir-signs-we-ani-via-partnership-with-american-idol-and-19-entertainment
Kaylie. (2020, February 26).  RESERVOIR PARTNERS WITH ABU DHABI’S POPARABIA; ANNOUNCES SPEK TO LEAD INTERNATIONAL AND EMERGING
MARKETS STRATEGY . Reservoir Media.  https://www.reservoir-media.com/reservoir-partners-with-abu-dhabis-poparabia-announces-spek-to-
lead-international-and-emerging-markets-strategy
Kaylie. (2020b, March 5).  RESERVOIR PARTNERS WITH AMERICANA & ROOTS MUSIC PUBLISHER ONE RIOT; ANNOUNCES THE SECRET SISTERS AS
FIRST SIGNING. Reservoir Media. https://www.reservoir-media.com/reservoir-partners-with-americana-announces-the-secret-sisters-as-first-
signing
Kiernan, C. (2022, February 24).  FEED MEDIA GROUP SIGNS DEAL WITH RESERVOIR TO BRING FULLY LICENSED, HIT MUSIC TO STARTUPS USING
THE ADAPTR PLATFORM . Reservoir Media.  https://www.reservoir-media.com/feed-media-group-signs-deal-with-reservoir-to-bring-fully-
licensed-hit-music-to-startups-using-the-adaptr-platform
Reservoir Media. (2025, May 27).  Reservoir Media - who we are. https://www.reservoir-media.com/about-us/
Reservoir Media, Inc. (2021, July 22). Reservoir invests in outdustry, expanding its emerging market strategy.  GlobeNewswire News Room.
https://www.globenewswire.com/news-release/2021/07/22/2267248/0/en/Reservoir-Invests-In-Outdustry-Expanding-Its-Emerging-Market-
Strategy
Reservoir Media, Inc. (2021b, October 14). Reservoir invests in audio entertainment company Audio Up, Inc.  GlobeNewswire News Room.
https://www.globenewswire.com/news-release/2021/10/14/2314287/0/en/Reservoir-Invests-in-Audio-Entertainment-Company-Audio-Up-Inc.