Mathieu Drouin: Well, there’s different ways to address it. And I mean I don’t pretend for a minute that we’ve figured out the answer.

Francoise: Figured it out. Yeah.

Mathieu Drouin: One example is this artist called The Lovely Feathers that we deal with. There’s actually two artists right now that we work with in all aspects of their careers.

So to give you an example, The Lovely Feathers have signed a publishing contract, a recording contract, and a management contract. But there are two main problems associated with the way companies, in the past, have tried to do all-in 360-degree deals.

Number one is that, like I said, they’ve taken a traditional industry record contract, where the record label can be making profits on an artist well before the artist is recouped, as you refer to it in the industry. Which means the financial interests of the artists and the company, or at least the record company component, aren’t aligned. So that creates a real problem when the manager, who’s supposed to be representing the best interests of the artist, is interfacing with the label. Who say, happens to be himself, if you’re partnered with the artist in all aspects of their career. When the financial interests are aligned, when you look at a given situation that you need to come to a conclusion on or a consensus on how you’re going to adapt to it, if the interests aren’t aligned it doesn’t work. So all our contracts are net profit splits with the artist. So there’s no saying 50-percent of videos are recoupable, 100-percent of tour support, this kind of recording costs but not that kind entrap. It’s: all costs to the project are costs to the project and all revenues to the project are revenues to the project. And the profits get split with the artist.

So, in that sense, you have aligned the financial interests. And really, conceptually, if you’re looking at it, it’s more – imagine – the work it works practically is, imagine you’re an artist and we’re a company with resources and experience and whatever. We’ll sit down and we’ll say, imagine it’s like we’re starting a company together where you own the bulk of it but we own a piece of it. And you’re providing the art and the talent and the willingness to promote it. And we’re providing financial resources, infrastructure, and industry experience and the knowledge and know-how to go out and promote it.

And that’s the partnership, basically. So it’s like owning a company together. And as the people who are running the company on a day-to-day basis, we’re effectively performing management services. So we don’t own, in the context of this company the way we’ve structured it so far, any part of the artist’s merchandise our touring business.

So on that level, coordinating their overall career, we will take a management commission, standard industry percentages on merchandise and touring. But we won’t take a commission on any share of the artist’s proceeds from publishing or recording because that would constitute a double-dip. Essentially where you’re participating on two levels and when you combine that with the fact that it’s in that profit split, whether it’s 50/50 or 75/25 in the artist’s favor or otherwise, you’ve aligned the earning interests.

So for the most part, so far anyway, we’ve completely dealt with any conflict problems.

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