Founded: September, 2002
What is it?
Snocap allows those who own rights to music to place them onto p2p networks and retail sites with DRM. This means that, through Snocap, music can theoretically be controlled (charged for and copies restricted) and still leverage the extremely popular p2p sites for distribution. It was founded by Shawn Fanning, the creator of the original Napster p2p filesharing network in 1999.
The current business models for selling music include iTunes (pay per download) and subscription services like Yahoo, Napster and Rhapsody that allow you to listen to, and download, anything and everything in their catalog for a monthly subscription fee ranging from $5 – $20 per month currently.
Snocap does things differently. They are decentralized and therefore do not require, or even provide, a centralized service for downloading music. Rather, they have focused on the platform and relationships with labels.
Current label partners include: Universal Music Group, SONY BMG MUSIC ENTERTAINMENT, EMI, Absolutely Kosher Records, Artemis Records/Sheridan Square Entertainment, Digital Musicworks International, IDEA Distributors, I AM Music and Entertainment, Gammon Records, Independent Online Distribution Alliance, Kufala, Streetbeat Records / Pandisc / Kriztal Entertainment, Nacional Records, Nettwerk Records, OM Records/Deep Concentration, One Little Indian, Psychobaby Reality Entertainment, Ryko Group, Six Degrees, SSDD and TVT Records.
Snocap allows labels to charge for music (snocap will take a cut ranging from 0% – 2.5% of the fee charged by the labels). They also charge labels for premium accounts give increased functionality and reporting.
Services to Labels:
- allowslabels and individual artists to embrace peer-to-peer networks as a safe and secure distribution channel.
- one-stop access to clear rights and manage online distribution across retail destinations.
– ability to maintain full control of content by determining business rules and setting pricing and usage terms.
- accounting and reporting services
- method for independent artists to distribute and sell their music
Services to P2P and Retail sites:
- centralized access point for all their licensing needs.
- ability to sell music from the vast selection of music now only available on file-sharing networks.
- incremental revenues from live, remixed and out-of-print works
- reduced costs by eliminating the need to maintain relationships with thousands of copyright holders
Shawn Fanning – Chief Strategy Officer
Ali Aydar, Chief – Operating Officer
Christian Castle – General Counsel