As a trusted solution in other industries, Alternative Legal Service Providers (ALSPs) are a relatively new development in the music business.
What Is an ALSP?
Innovative Legal Solutions
An Alternative Legal Services Provider (ALSP) is a company that provides legal services to clients outside of the traditional law firm model.
Cost-Effective Legal Support
ALSPs use technology and process improvements to streamline legal work, increase efficiency, and reduce costs.
Transforming Legal Landscapes
In recent years, ALSPs have gained momentum as businesses seek to optimise their legal operations and reduce their legal spend.
The Rise of the ALSP: Bringing Innovation to Music Business Affairs
The ALSP sector, now valued at $20.6 billion, has experienced substantial growth with a 20% compounded annual growth rate (CAGR) from 2019 to 2021, according to the 2023 Alternative Legal Services Providers Report*. This is notably higher than the 15% CAGR of the preceding two years (2018 and 2019), and is clear evidence of the acceleration in adoption of these services.
* Published by the Thomson Reuters Institute, the Center on Ethics and the Legal Profession at Georgetown Law, and the Saïd Business School at the University of Oxford.
From Zero to 100k: The Daily Sound Surge
Since 2008, daily music releases on Spotify have skyrocketed from 0 to 100,000.
As the Music Industry Booms, so Does the Pile of Paperwork
With record-breaking output comes a surge in legal and business affairs demands. Don’t let mountains of paperwork slow you down.
Understanding the Complexities
These challenges we’ve described are not limited to recorded music. Similar patterns can be seen across the entire industry, from publishing to live music, music rights in film and TV, and music technology businesses.
More contributors, more complications
Modern releases often feature input from numerous producers, featured artists, samples, and more, adding layers of complexity.
Shorter rights, more renewals
Deals that would have once lasted in perpetuity are now subject to shorter rights periods, leading to a cycle of constant renewals and additional paperwork.
Catalogue acquisitions, transfer of rights
With the consolidation of the industry, comes the transfer of rights, and the additional documentation with accompany it.
An ever-changing landscape
The Music Industry is continuously evolving with new technology, platforms, and business models, often requiring repapering exercises to keep up.
The Common Thread Across the Music Industry
But there’s a common theme - it’s the hard-working in-house legal and business affairs teams who can often feel like they’re swimming against the current.
How’s Your Legal and Business Affairs Team Keeping Up?
As the music industry continues its rapid growth, with increasing demands on legal and business affairs teams, it’s worth asking - How have the resources available to this part of your organisation kept pace?
Matched the growth of the industry?
Tracked relatively flat?
Dropped off somewhat?
Current Solutions: Shortcomings and Challenges
Despite the recurring challenges faced by in-house legal teams, previous solutions have been diverse and come with their own limitations.
Traditional law firms
Cost inefficiency, work not prioritized, workflows not tailored.
Individual consultants
High cost, IR35, overkill for smaller tasks, limited expertise for high volume low-value work.
In-house hiring
Scarce talent, high turnover, cost of hiring and training.
Doing nothing?
The most expensive option of all.
How Can an ALSP Work for You?
A significant and growing number of highly successful music businesses are discovering that there is a better solution. Find out more about how our ALSP services can enhance your legal and business affairs output.