🗝 Emilio García’s Post

Bertelsmann's recent financial disclosure provides a glimpse into the evolving dynamics of the music industry. Their music division, BMG - The New Music Company, reported an 11.5% YoY revenue growth, amassing €414m for H1 2023. A significant insight is the shift in revenue sources: digital now accounts for 63% of the revenue, down from 69% last year. This decline is attributed to a rise in live revenues in the post-pandemic phase. Additionally, BMG has been aggressively diversifying its portfolio, marking 15 acquisitions in this half alone, including assets from renowned names like The Hollies and Paul Simon. Bertelsmann's overall expenditure on 'intangible assets' for H1 2023 stood at €264m Read The Full Story Here: https://lnkd.in/eAQHvNFE #BMGRevenues #BertelsmannFinancials #PostPandemicGrowth #musically #musicnews #readmore

New Post: Sony Music Revenues Jump 16% Thanks to SZA & Streaming - https://lnkd.in/gaSh6i_M - With SZA’s album SOS leading the way and the market enjoying more growth in streaming royalties, Sony Music’s revenue grew 16.0% to 422.1 billion yen ($2.85 billion at the period’s average exchange rate) in its fiscal third quarter ended Dec. 31, the company announced Wednesday (Feb. 14).  Other top releases for the quarter were Travis Scott’s Utopia, Rod Wave’s Nostalgia, Doja Cat’s Scarlet, Blink-182’s One More Time…, Tate McRae’s Think Later, Harry Styles’ Harry’s House and Fuerza Regida’s Pa Las Baby’s Y Belikeada. A couple holiday classics were amongst Sony’s top albums in the Christmas quarter: Mariah Carey’s Merry Christmas and Phil Spector’s A Christmas Gift for You From Phil Spector.  Streaming fueled growth in both the recorded music and music publishing segments of the business. Paid subscriptions were a major factor in the first full quarter after Spotify raised prices in roughly 50 markets, including the U.S., in July. Favorable foreign exchange rates accounted for about 24% of the quarter’s 58.4 billion yen ($394.9 million) revenue increase.  Its double-digit revenue growth was comparable on a percentage basis to other music companies that have released earnings. In the same quarter, Warner Music Group’s revenue grew 17.5% to $1.75 billion and Reservoir Media revenue improved 19% to $35.5 million. Spotify, the largest single source for music royalties globally, grew revenue by 16% to 3.67 billion euros ($4.05 billion).  Sony Music’s margins improved across the board, too. Operating income improved 20.8% to 76.1 billion yen ($514.4 million) and adjusted operating income before depreciation and amortization jumped 25.3% to 98.5 billion yen ($666.2 million). Adjusted OIBDA margin improved nearly two percentage points to 23.3% from 21.6% in the prior-year quarter.  The strong quarter led Sony Music to raise its full-year forecasts for the third consecutive quarter. On Wednesday, the company raised the forecasts for both revenue and adjusted OIBDA by 10 billion yen ($68 million) — revenue from 1.56 trillion yen ($10.37 billion at the current exchange rate) to 1.57 trillion yen ($10.43 billion) and adjusted OIBDA from 350 billion yen ($2.33 billion) to 360 million yen ($2.39 billion). When the company released its fiscal second quarter earnings in November, it increased its revenue guidance by 5% to 70 billion yen ($485 million) and adjusted OIBDA by 4%, or 15 billion yen ($104 million). In August, it raised its revenue forecast by 6%.  Both music divisions each posted solid year-over-year gains in the quarter. Recorded music revenues jumped 19.9% to 286.5 billion yen ($1.94 billion). Streaming revenue rose 17.2% to 186.5 billion yen ($1.26 billion) and accounted for about 58% of the segment’s improvem

🎵 Symphony of Success: The Harmony Between Music and Real Estate Syndication 🎵 In the world of music, a symphony orchestra stands as a testament to the power of collaboration, where each musician contributes their unique talents to create a masterpiece. Similarly, in the realm of commercial real estate syndication, we find a harmonious blend of expertise, resources, and vision coming together to achieve remarkable outcomes. Just as a conductor leads the orchestra, orchestrating every note to perfection, a syndicator in commercial real estate brings together investors, property managers, and developers, ensuring each plays their part in the grand composition. Here’s how they align: **1. Diverse Talents:** In a symphony, you have strings, woodwinds, brass, and percussion, each adding their distinct sound. In syndication, you have investors, each bringing different strengths—capital, experience, and networks—that collectively create a stronger investment. **2. Unified Vision:** A symphony follows a meticulously crafted score, guiding the musicians towards a common goal. Similarly, a syndication project follows a well-thought-out business plan, aligning all stakeholders towards achieving shared financial and developmental objectives. **3. Synchronization:** Timing and coordination are crucial in a symphony. Each musician must enter at the right moment, just as each phase of a real estate project—acquisition, development, and management—must be precisely timed to ensure success. **4. Leadership:** The conductor’s role is pivotal, guiding the orchestra with a clear vision and decisive actions. In syndication, the syndicator’s leadership ensures that all moving parts work in unison, navigating challenges and steering the project towards profitability. **5. Collective Success:** The applause at the end of a symphony is a collective achievement, a celebration of every musician’s contribution. In syndication, the financial rewards and the satisfaction of transforming a property are shared by all investors, reflecting the power of collaboration. Just as a beautiful symphony can stir the soul and leave a lasting impression, a successful syndication project can transform communities and generate substantial returns for investors. In both realms, the key lies in the seamless blend of diverse talents, unified by a shared vision and guided by expert leadership. Let’s continue to create beautiful symphonies in the world of commercial real estate syndication, one harmonious investment at a time. #RealEstateSyndication #Investment

The recent acquisition of a significant portion of Michael Jackson's music catalog by Sony Music Group is undoubtedly noteworthy. Jackson's musical legacy is undeniably iconic, and his catalog represents a valuable asset within the music industry. Traditionally, investing in established catalogs of renowned artists has been regarded as a wise strategy, offering stable returns that are often shielded from broader market fluctuations. However, in the current landscape, characterized by high interest rates, the appeal of such investments may be lessened. RIPE Capital focuses on emerging artists with high-performing tracks, offering double-digit returns to investors. This underscores the evolving nature of the music investment landscape, where superstar assets like Jackson's catalog coexist alongside newer opportunities that reflect shifting industry dynamics. https://lnkd.in/emAmz4Jc #musicroyalties #alternativeinvestments

This is a good post if: You are a billionaire and bought or screwed an artist out of their rights. Ask 99% of artists what their royalty payments were from any music streamer and you will see a need to raise capital again, especially if you want to tour. I have many musicians/artists that have "made it". Been making music for more the 10 years, six figures a year, there profession. Maybe a thousand dollars a year comes from royalties. So I agree with your post if you have a music fund with millions of dollars to buy other peoples rights, but how many rights have you purchased recently where the song or artist is less than 5 years old? The reason companies balk at me when I tell them music for their event will cost $10K for the artist is because Spotify is paying them 1/3 or a penny for their music. If your over 40 years old, had radio hits back in the 80's and 90's I would agree with this post, otherwise sorry Alex not good:(

Hipgnosis Song Management (LSE:SONG) has completed the sale of a music catalogue for $23.1 million.  The London-based based music intellectual property rights investor has sold around 20,000 songs, around 1% of its #investment portfolio.    The firm said these non-core songs were bundled with the iconic Songs acquired in 2020 as part of Kobalt Fund One.    #Hipgnosis said the gross consideration reflects a 14.2% discount to the valuation of the songs prepared by the company's portfolio independent valuer at September 30 and represents a 9.6x net publisher share multiple.   Net proceeds are expected to equal around $22.6 million and will be used to pay down revolving credit facility drawings, providing the company with greater headroom under its future covenant compliance reporting.  More at #Proactive #ProactiveInvestors #LSE #SONG #HipgnosisSongsFund http://ow.ly/7tgp1055gK2

German labels body BVMI has published its mid-year figures for 2024, and they reveal continued growth for the market there. Revenues from streams and sales grew by 7.6% year-on-year to €1.14bn ($1.23bn at current exchange rates) in the first six months of 2024. However, within that growth there were mixed fortunes for the various revenue sources. Audio streaming revenues were up 12.7%, but physical sales were down 11.9%. That was largely about CD sales, which fell by 22.5%. Vinyl’s growth of 5.4% couldn’t make up for that loss, since CDs are still just over 8% of Germany’s recorded music market. Read The Full Story Here: https://lnkd.in/d2WGdctH #MusicIndustry #musically #musicnews #readmore

“…since the resurgence in the popularity and mainstream manufacturing of the vinyl record format, there has been an heightened interest within already-existing independent labels, as well as, a sprouting of new ones, who either make the reissuing of hard or impossible to find records a great part of their operation and practices, or have made that practice the entire premise of their company's existence.” #musicindustry #musicbusiness #musicdistribution #recordlabels #indiemusic https://lnkd.in/e-_7MNdN

July 15, 2024, Toronto, Canada. Music Royalties Inc. (‘MRI’) is pleased to announce the payment of its 54th dividend representing: 1)     a cumulative $0.124 per share in dividends and 2)     a total of over $9 million has been paid out to shareholders since 2019. The cumulative 12.4 cents in dividends represents an 83% return on capital for initial investors who invested at $0.15 per share, 31% in dividends for $0.40 per share investors and up to 25% in dividends for $0.50 per share investors before capital gains. New investors at $0.50 per share receive $0.036 per year for a starting 7.2% yield, which is more than double the average S&P/TSX 60 dividend of 3.1% and more than five times the S&P 500 dividend yield of 1.3%. Click Link to Read More: #musicroyalties https://lnkd.in/ecyUncB8

The Hipgnosis Songs Fund, a publicly traded fund focused on purchasing music rights, has faced a rapid decline in share price since reaching its peak in late 2021. This decline is due to various factors, including concerns about the reliability of the valuation model and oversaturation of the music rights market. The increase in global interest rates has also affected the fund's relative value. Hipgnosis is now faced with the challenge of proving its worth by selling assets at a decent price. However, a recent attempt to sell a fifth of its catalogue was perceived unfavorably due to a large discount to book value and conflicts of interest. The cancellation of a dividend further diminished shareholder confidence. In order to escape this predicament, rigorous governance and the appointment of an independent chair are suggested. Despite the current turmoil, a publicly traded royalty fund for music can still succeed if it prioritizes shareholder interests over those of the advisers. #KaiserChiefs #London #HipgnosisSongsFund #PoundSterling #Blondie #Liquidation #MerckMercuriadis #NeilYoung #BarryManilow #NewYork #UnitedStatesDollar #RedHotChiliPeppers #Hipgnosis