I. What role do we play in the music industry?

The recording industry and the way artists make money are quickly evolving. Just a few years ago artists were dependent on record labels and the radio to distribute their content to the public, and listeners could only hear their favorite songs on demand if they bought the record or CD. Times have changed, however, and the traditional model of generating music sales is becoming less and less profitable for artists. Through the convenience of the Internet, many people are now getting their music content online, whether through streaming services or illegal downloads and pirating. While pirating and illegal downloads were once a leading cause of lost revenue for many artists, these practices are declining. Online streaming services, such as Zefen, which provide music content through both free services and affordable paid subscriptions, are attracting many listeners, including those who used to pirate music. We give those listeners a better alternative when they want to hear their favorite songs or discover new music.

Once we attract listeners to our platform, we help artists increase their royalties by encouraging listeners to upgrade to our paid services. Artists around the world are then able to expand their revenue potential through our royalty payment system.

II. How do we help artists make money?

Online music streaming has become a much more efficient model than the traditional model of music sales. Streaming allows artists to have more control over their content and rewards those who create great music. It eliminates the need for large marketing budgets and radio airtime by making the content more accessible to users. Artists can also take advantage of social media to further advertise and increase their fan base. Recent data shows that streaming music revenues were up 40 percent globally, and streaming music is the fastest-growing sector of the industry, overtaking downloads. Many of the major record companies make more per year from paying customers of streaming services than they do from the average customer who buys downloads, CDs, or both. With Zefen, we can help both signed and unsigned artists take advantage of this growing and profitable trend, which is the next big step for global music consumption. When listeners visit our site to hear music, Zefen pays the artists royalties based on the number of times listeners request to hear a particular song. We distribute 70 percent of all net profits that we receive back to the artists and content owners, based on the popularity of their music on Zefen. We keep only 30 percent of the net profits.

III. How do we make money?

Zefen generates revenue through paid advertising on our free service platform and subscriptions for our paid service platform. Through our free service, we offer listeners the chance to listen to artists on a restricted basis. They are not able to choose a particular song on demand and must also listen to our paid advertisements. Our advertisers sponsor the free service in exchange for being able to promote their products or services on our free platform. We encourage users to upgrade to a paid account after attracting them through our free service. Through our paid service, listeners choose to subscribe for a monthly fee of $x.xx. In exchange, they have unrestricted access to the music content on our platform and can play songs on demand. They can also skip as many songs as they wish and do not have to listen to advertisements.

IV. How do we determine net profits?

Net profits are what we have left after subtracting any distribution fees or other operating expenses from the total revenues we receive from hosting music on our platform. This includes all revenues earned on behalf of all parties from all worldwide commercial sources. Once we have paid necessary operating expenses, 70 percent of the remaining profit is distributed to the artists and content owners based on their popularity on the platform. Revenue from Zefen services worldwide – Operating Expenses = Net Profits

V. How much are artists guaranteed to make?

Although Zefen cannot guarantee that artists will receive a particular amount of revenue from our platform or that any commercial in-text links or ads surrounding an artist’s content will be completely relevant to listeners, we are vested in the success of every artist. Since our profits are directly tied to the artists and content owners, we make every effort to ensure that we are assisting as much as possible.

VI. When will artists receive their payments?

Zefen will provide Content Creators with a finalized revenue statement for any payments due them for the previous month on the 15th of each month. Zefen will pay Content Creators in accordance with the revenue statement forty-five (45) business days after the end of the calendar month for which payment is due, provided that the earned balance in the Content Creator’s account is greater than or equal to the Payment Threshold.

VII. What is the Payment Threshold for payouts?

Zefen has a $100 (USD) threshold, which means that Content Creators must earn at least $100 before Zefen makes a payout. Once the Content Creator earns at least $100, the entire balance will be paid out.

VIII. Who will own the rights to the content?

Zefen does not own the rights to any contributions. Artists and content owners retain all IP rights, titles, and interests, including copyright in and to all original and preexisting audio, video, images, and know-how created or used by Zefen and all other original creative elements developed.

IX. What rights will Zefen have to the content?

As an artist or content owner contributing content to our platform, you will give Zefen a nonexclusive license to use and exhibit all Authorized Content as well as any images, outtakes, film clips, photographic and sound assets, music, and other materials in connection with the promotion and exploitation of the Zefen platforms and your content.

by October 13, 2016