Hi all!
If you sell audio content on Elements or AudioJungle, you will have received an email update today about the distribution and licensing of audio content on Envato.
This follows a year after our initial announcement about third-party licensing and distribution. Over that time the audio landscape has continued to evolve, and we feel it is time to take the next step in exploring incremental third-party revenue streams for audio.
In last year’s update, we also announced that we would provide audio Authors with written notice and the ability to opt-out of Envato’s future plans to use audio items in any third-party licensing and distribution deals. Details of that opt-out process are contained in today’s email.
If you have questions after reading the email, please ask them here. I’ll be compiling everything from this thread and raising them with our project team, and will share answers here as they become available.
FAQs
How long do I have to make a decision on this?
If you do not want your audio content included in any third-party distribution or licensing plans, you can opt out via the link in that email. If you decide to opt out, you have until midnight Monday 29 July, 2024 (AEST) to do so.
If I opt out of third-party agreements for audio, can I continue selling music and sound effects on Envato?
Yes. Opting out of third-party agreements will not impact your ability to continue selling your items on Envato as normal.
Updates added on 4 July in post #40 (link)
Does this apply to both Music and Sound Effects audio content?
Yes. All our current Audio content types are covered, as we would like to explore potential new revenue streams for Music and Sound Effects authors. From 2 August 2024, we will be including audio content as part of our third party distribution and licensing plans, unless you have explicitly chosen to opt out of these third-party agreements prior to 29 July.
Why is Envato asking Authors to opt in or out before any details are available?
Before we can start to discuss partnership opportunities with any third parties, we need clear data about how many Audio items are potentially available for use. This is why we’re notifying you now. As this step must take place before any discussions can begin, we cannot speculate on the details of what any future deal might involve.
Can I change my opt-in status after July 29?
No. Once we finalize the list of items that we can pursue third-party deals for, we will not be adding or removing content on an item or Author level. This is not feasible given the scale of our community: we have tens of thousands of Authors in our community, and it will not be possible to conduct any third-party discussions while the number of items is in constant flux.
Why is everything included in a single opt-out process?
We are combining all potential 3rd-party distribution and GenAI-related licensing into a single opt-in process to simplify this, due to the number of different Authors and items involved. This gives our team a clear number of items that they can enter discussions and pursue new revenue opportunities for, and flexibility in how they seek these opportunities.
How will Author earnings be affected by this?
Your item distribution on Market and Elements is not affected by your choice to opt in or out of third-party distribution and licensing. Any revenue generated from third parties will be additional revenue, above and beyond what you earn directly on Envato sites. You will see this on a separate line item in your earnings report that will reflect any revenue generated by third-party partnerships.
How can I change my response if I have already submitted the Opt-Out form?
Please open an Author Support ticket and use it to provide updated information before July 29, so that we have an official reference for your request.
Why are we doing this now?
By providing Audio authors with the ability to opt-out of third-party arrangements by July 29, we will have clarity over the total number and types of audio items that we can explore third-party licensing and distribution deals for, from August onwards.
Our industry is undergoing significant disruption, and the current opportunities are changing rapidly. There will be potential for new ways to generate revenue and earnings for our Author community. But in order to effectively pursue these new opportunities and beat the competition, we need the ability to move quickly and adapt. This is the first step in that journey.
What do you mean by “third party arrangements”?
This term covers any use of the content you license through Envato, on sites outside of our ecosystem. As discussed in our Author Hub article, this could include:
- Developing generative AI models
- Augmenting a partner’s content offering with our library
- Integrating content into creative tools
A note on partnership selection, scale and speed:
It’s important to note that we are working to ensure that any potential partnership offers worthwhile benefits to all parties: we’re looking for partnerships that are complementary to our primary business, involve working with reputable companies, and can generate meaningful income for both Envato and the Author community. This takes time, as we will not jump at every potential offer.
While selecting partners to work with is a slow process, when discussions do commence things can move very quickly. This is why we need to establish a clear number of items that we have permission to use in third-party arrangements.
At the stage when a deal is under consideration, it will not be possible to go back to adjust the content that is available. The Envato community involves thousands of Authors and millions of items, and the process of contacting and seeking usage permissions from our full community takes several weeks. This is why we’re establishing permission up front, so that our commercial teams can move quickly later on.
Would third-party earnings be ongoing or one-off payments?
Both options are possible, and would depend on the specific partner and their usage. Without having full details of future arrangements, we cannot provide you with details of fee structures. Compensation and the share will be subject to the terms negotiated with third party partners, but our intention will always be to ensure those terms are as favourable as possible.
Can authors who use virtual instruments and sample libraries license their music for AI training?
Envato cannot give advice on the T&Cs of the range of tools that may be used by our authors. If you are unsure whether your tools allow the license of your music tracks (“derivative works”) for AI training, we recommend that you check directly with those tools to confirm what is permitted.
This list of FAQs was updated on July 4 and July 12 - we’ll continue answering more questions next week