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Many consumer-facing businesses—fitness companies, retailers, conferences, etc.—have migrated online or doubled-down on digital over the past year. Regardless of how the pandemic ends or when the “new normal” arrives, it’s certain that fierce competition for attention in the digital landscape will remain. One of the proven differentiators that can significantly increase customer “stickiness” is music, and the demand for legal music integration has never been greater.

As a B2B music-as-a-service company, Feed Media Group (FMG) knows that music is a sound investment (pun intended), provided that you’re strategic about the way it’s incorporated First, the bad news: music licensing is famously complex and expensive. Confusing copyrights and upfront advances are daunting, sometimes resulting in costly delays to market.

The good news is that the music industry understands the vital role digital innovations such as streaming play in a thriving, stable music ecosystem. As COVID-19 continues forcing the world to find new ways to connect, there’s also a recognition that music rights holders could end up making even more money as they ride the next wave of technological evolution.

Fitness has permanently changed. Since COVID-19’s arrival there’s been an explosion of online content, with brick-and-mortar gyms pivoting swiftly into digital programs their members can access at home, and digital fitness brands driving record growth. As coronavirus spikes across the country, the fitness industry continues transforming...even as gyms and studios consider safety precautions that will eventually allow users to return in greater numbers.

Over the past few months, we’ve often heard variations on the same question: “How can I legally live stream fitness classes with hit music?”

First, let’s get an ugly fact out of the way. Music licensing is famously complicated, with downloadable content, live streaming, public performances, and video sync all requiring different licenses from multiple rights holders. Our Music Licensing 101 webpage may be a helpful starting point for understanding these different use cases.

One of the essential qualifications for any successful entrepreneur? Perspective, preferably lots of it. Before pivoting into the music sector and co-founding music-as-a-service company Feed.fm, Jeff Yasuda spent the first decade of his career as an investment banker and VC. His experience on both sides of the fundraising table has made the challenging job of securing and structuring financing a little easier for our company.

Last year, we interviewed Jeff about Venture Capital in the fitness sector, based on Feed.fm’s work with dozens of fitness companies. In the wake of COVID-19 and the transformations happening in fitness, we asked for Jeff’s advice on navigating what he describes as “the challenging world of fitness investment.” He shares his unique perspective below.

What types of VCs should fitness companies be looking at for funding right now? Ones that specialize in fitness? Larger ones that already have fitness startups in their portfolios?

YASUDA: First, it’s important to understand the framework in which VC funding decisions are typically made. Most investors take a portfolio approach. Since they’re not exactly sure which investments are going to be winners, they’ll spread their bets with the hope that at least one of them (or a couple) will succeed.

The process and tools used to create workout soundtracks have evolved over the years right alongside the way we consume music in general. Early VHS tapes had background music recorded in studio, workout compilation CDs blasted from speakers in aerobics room, and most recently, streaming from personal Spotify/Apple Music accounts has taken over.

In the last 5 years, we’ve seen a huge uptick in both specialized boutique fitness studios and at-home fitness apps. When the pandemic hit the US in March, there was suddenly a massive need to find a way to combine the boutique experience with the convenience of working out at home. I've spoken with over 100 different fitness brands in 3 months and they are all passionate about what they do and the impact they can have on the health and wellness of people like me that are suddenly stuck at home.

Super Abbreviated History of Music Listening

In the 1980s, mixtapes were recorded, painstakingly, one song at a time. Then we had Now That’s What I Call Music! compilations in the 90s, Napster mp3’s burned onto CD’s at the turn of the century, and iPod shuffles in the mid-aughts. The unifying thread amongst all these methods of playlist construction is that they were human created. It wasn’t until Pandora, Spotify and iTunes Radio hit the mainstream that AI-driven music curation played a significant role in the discovery process for music fans.

Now however, AI curation has become the norm, with BBC reporting that “an algorithm...will decide what you hear–and critically, what you’ll hear next.” People still create customized playlists for special events, and DJs–though they have been forced online recently–still play an important role in music listening and discovery. But in general, how often are we or another human choosing the next song, as opposed to an algorithm?

Feed.fm works with the world’s leading fitness companies to provide legal, curated music integration in their apps and digital settings. While each brand has unique considerations (development bandwidth, customer acquisition challenges, competitive pressures), we consistently hear from customers that "I wish we'd done this sooner."

From our vantage point of working across the fit tech sector, we can see there is a clear opportunity cost to waiting on music integration. So we tallied the Top Reasons for “Why Music Now?”

REASON #1 — Exerciser Impact

The world’s leading authority on fitness and music, Dr. Costas Karageorghis, has proven that music can improve running performance by 15%; it can be a sedative or a stimulant; a nerve calmer or focus inducer; a pre-workout entryway into flow state; a mood enhancer; and an agent that reduces perceived effort by up to 10%.

With more and more people migrating from the gym to digital fitness programs, there’s an impressive quantity, quality, and variety of fitness classes available on demand. As the fit tech boom continues, we’re frequently asked to provide input on both the legal side of music integration and the technical aspect of audio recording. The diagram below simplifies the decision process and summarizes the advice our Head of Curation (and Sound Engineer) typically shares.

Perhaps it’s intuitive that audio quality and music are as important as the image, lighting, and visual elements of your finished product. If not, here’s some advice from professional sports photographer and videographer David Bracetty, who makes a living based on how things look: “…I can’t recall a single comment on video quality, [but] I do recall commenting on sound and being able to hear, so get a good mic."