The SOFTRAX Revenue Management System is the ultimate solution for entertainment and media companies. In the fast-paced world of media and entertainment, managing promotions and trial periods can complicate revenue recognition. The shift to subscription and consumption-based models has introduced new challenges. Companies now face complexities like evergreen subscriptions, multi-tier pricing, and royalty tracking. SOFTRAX RMS simplifies these intricacies with a single-system solution. It automates billing, revenue recognition, and ASC 606 compliance, handling everything from initial orders to contract changes. With SOFTRAX, you can streamline operations and ensure accuracy. Focus on your core business while SOFTRAX manages the complexities. Schedule a demo today and discover how SOFTRAX can transform your billing and revenue processes. Experience the power of automation today.
Media and entertainment companies often use promotions and trial periods in their customer acquisition and CRM activities, leading to challenges in recognizing revenue at the proper pace.
COVID changed the face of consumer interactions with media and entertainment companies, with a report stating that 66% of US consumers tried a new digital activity for the first time during the pandemic. As companies seek revenue stability and to optimally monetize their relationship with these consumers, subscription and consumption billing models become attractive.
Unfortunately, the billing process for these models is more complex, including the need to handle evergreen subscription billing; contract renewals; multi-tier pricing, including minimums and overages; transaction-based charging, royalty tracking, commission charges; and contract-to-date and current-to-date transaction accumulation.
Moreover, these models drive downstream complexity in revenue recognition, requiring companies to track a number of factors, including accounting for licenses of intellectual property (IP), identifying performance obligations, evaluating whether an entity is a principal or an agent, assessing collectability and measuring non-cash consideration.
SOFTRAX Revenue Management System (RMS) gives media and entertainment companies the ability to adopt the most complex billing models by offering a single-system solution that supports all billing models, revenue recognition, and contract management.
Media and entertainment companies often use promotions and trial periods in their customer acquisition and CRM activities, leading to challenges in recognizing revenue at the proper pace.
Companies may also experience frequent changes to these agreements, which can trigger a need to follow the contract combination and modification guidance within ASC 606. Companies leveraging usage and consumption-based billing models may be particularly subject to the variable consideration guidance. These models make contract management and revenue recognition more complex.
SOFTRAX RMS automates revenue recognition, leveraging a proprietary policy and mapping engine, to remove the manual burden of handing both initial orders and subsequent change events, such as credits, cancelations, pauses, upsells, downsells, and a host of other forms of processing.
With SOFTRAX RMS, media and entertainment companies can automate the revenue and contract reporting requirements of ASC 606, allowing them to focus on the core areas of their businesses.
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