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Continuing from last post, how do you exit songs?Tim said, “If you own a part of the Mona Lisa, your rights can provide dividends for you and your descendants indefinitely. Would you want to sell and exit?”Upon hearing this, I understood. They don’t have an exit mechanism, or rather, they don’t intend to exit.“Mona Lisa?” I thought to myself, “Forget it. It’s completely incomparable. These are just the phrases used by the sell-side .”Then, I asked: “If that’s the case, then I want to know, how much are your dividends now?”He replied, “We distribute dividends to shareholders every month, and currently, it’s approximately at a 7% annualized rate.... Continue reading

Continuing from the last post, how are songs managed?Tim said they indeed don’t handle this; it’s all managed by the artists’ management companies. For new songs, they plan various promotions and chart rankings, while for older songs, they explore opportunities in movies, TV shows, and entertainment programs to see if they can be reused, adapted, or remixed by other artists. There’s all sorts of hype. He ended with a joke, “It’s all fate.” For instance, those viral videos on TikTok that suddenly become popular for no reason. They may feature amateurs and randomly chosen songs. Once the video goes viral,... Continue reading

Continuing from last post, Tim explained that there are three major industry associations here (I forgot the names, they are mentioned in the video, please email for details).Whenever someone creates a song, the copyright owner of that song must register it with the association, which serves as proof of copyright. If there is any transfer of copyright, the association must also be informed so that the new copyright owner can be registered, ensuring that royalties are paid to the correct owner. My follow-up question was, how can we ensure that royalties are not skimmed off once the copyright is established?... Continue reading

Continuing from the last post, as I varied my questions on how to assess a song’s cash flow, Tim went on with his high-level talk, mentioning various platforms where data can be scraped from. He explained that when a song is released, it typically sees high traffic, but within about 12 months, it usually declines, and what we buy into is the long-tail effect of income. We can acquire this income with a multiple of around 10-12 times. He mentioned previous purchases where the artist passed away, resulting in a doubling of streaming income, which turned out profitable, and so... Continue reading