Just days after renewing its distribution deal with Sony Music Entertainment’s music and video distribution subsidiary The Orchard, UK-baed One Media iP announced that it has acquired the “licensor’s income share” of 15,000 tracks in the Entertain Me catalog.
The catalog, which has been distributed by The Orchard since 2009, includes tracks by artists such as Dean Martin, The Drifters, Don Williams, Gloria Gaynor, James Brown, Judy Garland, Jose Carreras, Ray Charles, Jacki Wilson, the Royal Philharmonic Orchestra, The New England’s Children’s Choir and Louis Armstrong.
Spanning from the 1940s to the 1970s, the catalog features genres including classical, blues, country, children’s music, lullabies, jazz, swing, and disco.
“This acquisition not only gives us income exposure to new songs in our sweet spot of music nostalgia, it also allows us to strategically consolidate certain income streams where we also have a portfolio exposure to some of the tracks in the Entertain Me catalog.”
Michael Infante, One Media iP
“This acquisition not only gives us income exposure to new songs in our sweet spot of music nostalgia, it also allows us to strategically consolidate certain income streams where we also have a portfolio exposure to some of the tracks in the Entertain Me catalog. It also adds a proven new revenue source at an attractive multiple,” Michael Infante, CEO of One Media iP, said.
One Media did not disclose the financial terms of the deal that the company says was funded through existing cash reserves. The London-based music publisher, digital distributor and rights acquirer said the transaction enhances its revenue streams and portfolio Net Asset Value (NAV).
The company added that the acquisition aligns with its strategy of owning and managing evergreen music rights that yield consistent, long-term income.
In its recent semi-annual report covering the six months ended April 30, One Media disclosed a 15% year-over-year surge in revenue, amounting to £2.7 million (approx. USD $3.4 million). Of this, IP royalties accounted for £2.5 million ($3.1m).
One Media says that the deal with Entertain Me was facilitated using the Harmony IP asset release initiative, offering rights holders upfront access to future earnings in exchange for a lump sum payment.
In 2020, One Media raised £6.04 million (approx. USD $7.5 million), earmarked primarily for purchasing copyrights in performance and writers shares, primarily through its Harmony IP asset release program.
The recent deal with The Orchard saw One Media securing a recoupable advance of USD $1 million.
Music Business Worldwide