Sharing business news... Song publisher seeks merger; shifts to artiste management - By Steven Jackson, Business reporter at the Jamaica Observer LISTED company C2W Music is in merger talks with an overseas company, according to its president Derek Wilkie. It also plans to shift its business model from music publishing to artiste management. Initial talks centred on a local partner but those talks had gone south, which led to discussions with an unnamed overseas entity. When we speak about strategic alliance we want someone that comes with value to the table, not just someone with money because its not just money that will turn this around; its alliances, stated Wilkie on Saturday at its annual general meeting held at the Knutsford Court Hotel in Kingston attended by the Observer. Management are in discussion to look at other existing models with the intentions of considering a strategic merger partner that would add value to the asset base and one that could provide the conduit for exploitation of our catalogue, according to the chairmans report in the annual report. (...) The shift to artiste management, under what it calls a 360 model, will allow the company to increase revenue streams. The 360 model is an all- rights model. We are not in the music publishing business, we are now in the all rights business, stated CEO Ivan Berry at the meeting on Saturday. We are going to sign fantastic songwriters and create copyright, we are going to sign fantastic artistes and help them get global recognition and we are going to sign producers and make earnings from producer fees. C2W would earn from live show, endorsement deals, sponsorship deals and any other revenues that come with an artiste, according to Berry. Currently, C2W earns from exploiting its 900-song catalogue as well as arrangements with BMG Chrysalis to collect royalties on its behalf for a percentage. The company posted net income of US$16,600 for three months to June 30, its first net profit since listing on the Jamaica Stock Exchange (JSE) some two years ago. It was aided by the company avoiding jet-setting to regional songwriting workshops during the quarter, which previously proved costly for the company. C2W recorded a net loss of US$620,000 for 2013 compared to a loss of US$602,700 a year earlier. Berry said that under the music publishing model the publisher gets paid last in the business cycle. etc ------- Full article: jamaicaobserver/business/Song-publisher-seeks-merger--shifts-to-artiste-management_17746167
Posted on: Thu, 16 Oct 2014 22:30:00 +0000
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