Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be certain you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and scale back their touring prices.
It’s been one other quiet-ish summery week within the music enterprise – however that hasn’t stopped the greenback indicators from hitting MBW’s headlines.
On Monday this week, we printed our evaluation of Queen’s royalty earnings over the previous few years, utilizing monetary paperwork related to the British band’s UK firm.
They confirmed that Queen has pulled in over USD $180 million in royalties over the previous three years, and that the band’s three founding members – plus Freddie Mercury’s property – shared a GBP £20 million dividend in 2020.
Queen owns its recorded music catalog (exterior of North America, the place it’s owned by Disney) and licenses it via Common Music Group.
With each publishing and recorded music rights taken into consideration, MBW estimates that Queen’s catalog can be valued at greater than $1 billion within the fashionable market.
A type of magic, certainly.
Elsewhere this week, Hipgnosis efficiently raised $215 million in a brand new share subject.
The corporate’s share inserting was over-subscribed by new and present shareholders desirous to get in on the motion. That’s an excellent signal for Hipgnosis, but additionally for some other music rights firm on the market seeking to make the most of investor demand within the sector proper now.
In the meantime, US-based Shamrock Capital made an attention-grabbing transfer this week by closing a $196 million fund designed to supply leisure IP homeowners “mortgage constructions”. In different phrases, enabling rights-holders to borrow advances tethered to future earnings, moderately than promote their catalogs outright. One to look at.
The previous few days additionally provided us large information from the likes of Sony Music Group, Roblox, and the Britney Spears camp.
Right here’s the 5 tales it’s worthwhile to learn about…
Hipgnosis Songs Fund has a stack of contemporary money to play with.
The aggressively acquisitive UK-listed agency has introduced to traders at this time (July 6) that’s has efficiently raised £156 million ($215 million) through a proposed new share inserting on the London Inventory Change.
That determine is barely increased than the £150 million ($210m) Hipgnosis focused with its announcement of the share inserting in June. Why? As a result of the increase was over-subscribed, because of what Hipgnosis says was “vital demand from present and new traders”.
MBW has trawled again via the annual accounts of Queen Productions Ltd, the UK-based group into which Queen’s turnover is paid every year.
The newest of the agency’s annual accounts, for the 12 months to finish of September 2020, was filed late final month.
It reveals that Queen generated £41.95 million ($58.1 million at present trade charges) within the annual interval. The overwhelming majority of this cash got here from royalties, which amounted to £41.67 million ($57.7 million) within the yr.
US-based funding agency Shamrock Capital is greatest recognized in music for getting blockbuster leisure copyrights (together with Taylor Swift’s first six albums, which it acquired for round $300 million in November).
Now, it’s providing music rights-owners an alternative choice to promoting up.
Shamrock has confirmed that it’s raised a brand new $196 million fund with which it can provide mortgage constructions to IP homeowners – i.e. advancing rights-holders sums that they then repay (with curiosity) through future royalties.
Underneath the settlement with SME, Roblox and Sony Music say that they may work collectively to develop “revolutionary music experiences for the Roblox neighborhood”.
These alternatives, in keeping with the businesses, will “provide a variety of latest business alternatives for Sony Music artists to succeed in new audiences and generate new income streams round digital leisure”.
Larry Rudolph has resigned as Britney Spears’ supervisor after 25 years.
Rudolph, whose different purchasers embody Pitbull, Steven Tyler and Aerosmith, began managing Spears in 1995.