Sound Royalties, according to founder and CEO, Alex Heiche, is now “the largest private financial service company” in the music industry – with 50 full-time employees and continued global expansion on the horizon. Heiche can’t say how many advances the company has paid out so far, but does say that it works with hundreds of thousands of songs with thousands of individual streams.
Cooking Vinyl says the new department will demonstrate both “an increased focus on the long-term sales” of artists presently signed to the CV label, as well as “an aggressive acquisition policy to bolster the roster”. The new division will be headed up by catalog industry veteran Steve Bunyan.
Sony has just invested another $200 million in Epic Games as part of a $1 billion funding round, Epic announced today. Over a dozen investors contributed toward the funding round, which valued the Fortnite developer at $28.7 billion. That’s over $10 billion more than Epic Games’ estimated value at the time of Sony’s major investment last July.
Instead of diving headfirst into the market, label execs still trying to understand how NFTs can become long-term revenue generators, given the challenges of marketing to paranoid cryptocurrency collectors who are generally skeptical of corporate vendors, while considering risk factors that range from environmental damage to unauthorized knockoffs that could diminish the value of label-sold goods. Says one label source: “We don’t want to make $1 million today at the expense of $100 million in a year.”
BMG boss Hartwig Masuch would like to make it clear that his company’s new industry-shaking pact with investment giant KKR – under which both sides will co-own acquired assets – has much more going for it than its spending power. Even so, after a sustained hiatus from buying music assets, BMG has its check-book out once again… and it’s ready to write down some colossal numbers.
Between recording new music, maintaining a digital presence, spearheading promotional efforts, and performing live, there are more professional obligations for artists today than at any other point in music history. Consequently, it’s difficult for creators to find time for each career consideration – and easy for them to neglect certain tasks while dedicating attention to other matters.
Although music catalogs are sometimes compared to bonds, the income they generate can be volatile. Royalty payments are high soon after a song is released and then quickly decay. Several years on, a track’s income can be 70% to 90% below peak, according to one investor in the industry. The danger of overpaying for new music is therefore high.
The art world is fueled by investors hunting for alternative stores of value – indeed, art is one of the most effective wealth preservers in the world. While this has historically been restricted to physical art, the introduction of enforceable ownership rights for digital art, as well as other online creations such as in-game items or audio clips, means these can now be purchased by investors.
About two weeks back, multiple musicians staged protests outside of Spotify offices in the U.S. and abroad, demanding a higher per-stream royalty rate. Now, the campaign’s organizers have revealed that the Stockholm-based streaming platform has refused to pay one penny per play.
New York-based music and entertainment investment firm Influence Media Partners has launched a new fund to invest in what it describes as “award-winning catalogs of some of music’s most influential female music creators”. The new fund carries an initial value of up to $100 million and has been established in partnership with independent professional retirement services company Municipal Employment Retirement System (MERS of Michigan).