Sales Channel
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    Sales Channel

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    Article summary

    Understanding the Sales Channel Concept in eddy.app

    This article provides an in-depth exploration of the sales channel concept within eddy.app, detailing what sales channels represent and how to accurately apply them when creating sales or correcting sales errors.


    Key Takeaways

    1. Adaptive Mapping: New templates now include adaptive sales channel mapping. eddy will remember mapped sales channels when correcting errors, streamlining future imports.

    2. Sequential Imports: To ensure adaptive mapping is applied effectively, avoid importing from new custom templates in bulk. Instead, import sequentially.

    3. Parent-Child Channel Rates: Sales channel rates set on a parent channel automatically apply to all child channels, ensuring consistent and accurate rate application across the hierarchy.

    Overview of Sales Channels

    Sales channels are crucial for defining the type and characteristics of sales. eddy.app features up to five levels of sales channels, each acting as a sub-channel of its parent. This hierarchical structure enhances precision, allowing for detailed classification of sales. When configuring sales channels in a contract, it is possible to establish rules that apply to an entire "group" of sales channels and their sub-channels. For example, a rate configured for the 'Digital' sales channel will automatically apply to all its child channels. However, if a specific rate is set for a child channel, that rate takes precedence, ensuring that the most detailed configuration is applied first. This hierarchical application means that a child sales channel's settings are always prioritized over those of its parent.

    For accurate reporting and insights, we recommend always selecting the most precise sales channel available

    Adaptive Mapping

    The precision of sales channel mapping requires additional management, especially when new custom templatesare introduced. Initially, these templates will not have any sales channels mapped to them. This is where eddy.app's adaptive sales channel mapping feature becomes essential. Essentially, whenever a sales channel error is corrected—whether in custom templates or selected system templates (coming soon)—the correction is memorized. This corrected mapping is then automatically applied to future sales imports for those templates. Each template maintains its own unique sales channel mapping, which can be accessed and modified via the royalty source settings page.

    Leveraging these features streamlines your sales management processes, ensuring your sales data is accurately categorized and reflected in financial statements and insights.

    Definitions

    Streaming Audio

    1. Ad-supported: Revenue from ads played during streaming audio sessions (e.g., Spotify's free tier).

    2. Breakage: Revenue from unused portions of advances paid to digital service providers that are not recouped.

    3. Cloud Match: Revenue from services that match users' uploaded music to licensed tracks in the cloud (e.g., Apple's iTunes Match).

    4. User-Generated Content (UGC): Ad-supported: Revenue from ads played on user-generated content platforms (e.g., user-uploaded YouTube videos with music).

    5. User-Generated Content (UGC): Subscription: Revenue from subscription fees for accessing user-generated content platforms without ads.

    6. Subscription: Revenue from subscription fees for ad-free streaming services (e.g., Spotify Premium).

    Streaming Audio Non-Interactive

    1. Ad-supported: Revenue from ads played during non-interactive (radio-like) streaming audio sessions (e.g., Pandora's free tier).

    2. Subscription: Revenue from subscription fees for ad-free non-interactive streaming services (e.g., Pandora Premium).

    Streaming Video

    1. Ad-supported: Revenue from ads played during streaming video sessions (e.g., YouTube with ads).

    2. Breakage: Revenue from unused portions of advances paid to digital service providers that are not recouped.

    3. Cloud Match: Revenue from services that match users' uploaded videos to licensed content in the cloud.

    4. User-Generated Content (UGC): Ad-supported: Revenue from ads played on user-generated video content platforms.

    5. User-Generated Content (UGC): Subscription: Revenue from subscription fees for accessing user-generated video content platforms without ads.

    6. Subscription: Revenue from subscription fees for ad-free streaming video services.

    7. Non-Interactive: Ad-supported: Revenue from ads played during non-interactive (linear) video streaming sessions.

    8. Non-Interactive: Subscription: Revenue from subscription fees for ad-free non-interactive video streaming services.

    Download

    1. Audio: Revenue from the sale of audio downloads (e.g., iTunes music purchases).

    2. Video: Revenue from the sale of video downloads (e.g., movie purchases on Amazon Prime Video).

    Ringtones

    • Revenue from the sale of ringtone downloads.

    Digital

    • Breakage: Revenue from unused portions of advances paid to digital service providers that are not recouped.

    Physical Sales

    1. CD: Revenue from the sale of compact discs.

    2. DVD: Revenue from the sale of DVDs.

    3. Cassette (K7): Revenue from the sale of cassette tapes.

    4. Vinyl: Revenue from the sale of vinyl records.

    Artist Sales

    1. Digital: Revenue from the sale of digital music directly by artists.

    2. Physical: Revenue from the sale of physical music products directly by artists.

    Brands

    1. Streaming: Revenue from branded streaming services or brand-sponsored streams.

    2. Download: Revenue from branded download services.

    3. CD: Revenue from branded CD sales.

    4. DVD: Revenue from branded DVD sales.

    5. Cassette: Revenue from branded cassette sales.

    6. Vinyl: Revenue from branded vinyl sales.

    Direct-to-Fan

    1. Streaming: Revenue from streaming music directly to fans through direct-to-consumer platforms.

    2. Download: Revenue from selling downloads directly to fans through direct-to-consumer platforms.

    3. CD: Revenue from selling CDs directly to fans.

    4. DVD: Revenue from selling DVDs directly to fans.

    5. Cassette: Revenue from selling cassettes directly to fans.

    6. Vinyl: Revenue from selling vinyl records directly to fans.

    Neighboring Rights

    Neighboring rights, also known as related rights, refer to the rights of performers, producers of phonograms (sound recordings), and broadcasting organizations. These rights are distinct from the rights of songwriters and composers and typically involve the payment of royalties for the public performance, broadcasting, and other uses of recorded performances.

    Mail order sales

    Mail order sales involve selling products directly to consumers through catalogs, websites, or direct mail campaigns. Customers place orders via mail, phone, or online, and the products are then shipped directly to them. This method can be used for selling physical music products like CDs and vinyl records.

    Sample

    A sample in music refers to a portion of a sound recording reused in another recording. Sampling is common in various music genres, particularly in hip-hop and electronic music. Artists who use samples typically need to obtain permission from the original recording's copyright holder and may have to pay a fee.

    Synchronization

    Synchronization, or sync, involves licensing music for use in visual media such as films, TV shows, commercials, video games, and online videos. The rights holder grants permission for the music to be "synchronized" with the visual content, often for a fee or royalty.

    Stems

    Stems are individual tracks or groups of tracks within a multi-track recording, such as vocals, drums, bass, and other instruments separated from each other. Stems are used in mixing and remixing to give audio engineers more control over the final sound.

    Compilation

    A compilation is an album or collection of tracks that are gathered from various sources, often from different artists or different recordings of the same artist. Compilations can include greatest hits, themed collections, or soundtracks. Use only if you need a specific rate to be applied and sales to be classified as such in your statements.

    Merchandising

    Merchandising involves the creation and sale of products related to an artist or band, such as clothing, posters, accessories, and other branded items. Merchandise sales can be a significant revenue stream for artists.

    Live Performances

    Live performances refer to concerts, gigs, and other events where artists perform music in front of an audience. Revenue from live performances can come from ticket sales, merchandise sold at the venue, and sometimes sponsorships.

    Grant Funding
    Grant funding in the music industry involves receiving financial support from organizations, foundations, or government bodies to support music projects. Grants can be used for recording, touring, education, and other music-related activities.


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