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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, 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, he said they’ve now purchased over 7,000 songs because in this industry, diversification is particularly important (which industry isn’t, right?). He mentioned that you might have heard of names like The Rolling Stones, Justin Bieber (they once owned his songs, but later sold them), Beyoncé (his dad packaged and sold many of her songs to us), Jay Z, Alicia Keys, and the highest return so far has been from Avicii. They bought his songs for $140,000 and now they yield an annual return of 20-30%. I said, “The return rate you‘re talking about is not the same as what I’m talking about. Without... Continue reading

Continuing from the last post, when I specifically mentioned the risk of them taking the money and running, and of course other risks, he said the following.He said, “First of all, with over 7,000 songs, the risk is diversified enough, and of course, there will be more songs in the future. It’s common sense that the likelihood of all these songs collapsing together is very small, so diversification is one of the methods to significantly mitigate this risk. Secondly, we’ve been doing this for several years, and our specially designed model doesn’t charge management fees. We are shareholders ourselves, and... Continue reading