Hipgnosis Songs Share Discussion Threads

[montyhedge] 05/11/2020 11:52

So I know this company gets royalties on plays etc. But they don't own outright the songs, or do they, just trying to understand the business. Do they lease the rights for a period ?Could someone explain. Cheers.

[faz] 03/11/2020 15:06

I mentioned adverts and films not sales and prevailing taste. You only have to check out Shrek to hear what I mean

[epo001] 03/11/2020 10:24

busterdog2: it did and people tended to listen to the same things hence the sunday chart show and TOTP were weekly major events. I wonder if because music seems much more niche and disposable these days whether it can be an appreciating asset.

Sure streaming gives greater access but the audience share for each stream is tiny. And even with major artists, some songs will receive massive streams with many others barely any. These people are industry insiders and presumably (we hope!) know how to sweat the assets. And of course, the economics of the music business have changed markedly from when I thought I understood it...

[dsct] 02/11/2020 17:13

Another small item on BBC :


All I want for Christmas is... 33,000 songs

[busterdog2] 02/11/2020 14:19

In your day music came on big round plastic discs. It's a little more accessible nowadays.

[epo001] 02/11/2020 13:56

Really doubt they are appreciating assets. Pop music like newspapers goes in distinct phases, Current and hot, Yesterday and cold, then after a gap Nostalgia and warm.

The big pop music phase of my life was late 60s/early 70s. I listened to virtually none of it 18 years later and now it is on the muzak (Jefferson Airplane in Morrisons FFS!). Pop music is also much more fragmented and niche than in my day.

[busterdog2] 02/11/2020 13:23

It's not like the catalogue is worthless after 18 years either. It's an appreciating asset.

[faz] 02/11/2020 12:29

A key reason they buy these songs is not to sit on the expected income but to promote the songs - in films, adverts etc- to generate more income. THere's no point to the business otherwise.

[epo001] 02/11/2020 10:21

Is that RNS the first time they've said what they paid for a catalogue? They paid 323M for a historic annual income of 17.6M. An 18 year payback; I wonder how much income it will be generating in 18 years time?

[jeffian] 02/11/2020 09:52

I don't know whether that's a fair price but there are some cracking songs in there!

[bump3r] 02/11/2020 07:32

Wow thats some catalogue purchase.

[epo001] 29/10/2020 10:01

SONC dividends: Just in case I am not the only one who hadn't realised.

The RNS states that a dividend will be paid to holders of the Ordinary shares. HL list SONC as Ordinary shares and so I emailed Hipgnosis yesterday to ask. SONC share holders will NOT receive a dividend next month.

(If only I could remember why I bought SONC and not SONG.)

[rambutan2] 25/10/2020 21:54

Just been looking at RHM's offering. Will be good to have a listed comparator:

Valuations
Round Hill believes that valuations for music publishing investments remain favourable for investors despite the increased flow of capital to the market in recent years.

From 2008 to 2014, valuations typically traded at 8x – 10x NPS (net publisher's share). From 2014 to today, valuations have risen to 9x – 15x NPS for new Catalogues (with the most prestigious stabilised Catalogues reaching 20x NPS). With the market for publishing and recorded music predicted to double within 10 years, mostly due to the growth of streaming, Round Hill believes that valuations at 16x – 20x NPS for high quality, iconic, blue chip, stabilised Catalogues are very attractive, even without the materialisation of the anticipated level of significant growth.

Despite the increased interest in the asset class in recent years, due to its broad and well- entrenched network and deep relationships within the music publishing business, Round Hill believes that Catalogues, particularly those of small to medium-size, can be acquired on attractive terms.

[bump3r] 20/10/2020 16:13

Id not seen that article, Cheers

I like the last last bit about the Beatles where a question is asked to Merck:

Before then, though, is there a song catalogue he'd love to get his hands on?

"Everybody wants The Beatles," he smiles. "It's the greatest set of songs ever written.

"I don't think I'd want to live if The Beatles weren't part of this world."

[waterloo01] 20/10/2020 15:31

Big buys gone through.

[busterdog2] 14/10/2020 08:47

A top quality addition.

[jeffian] 14/10/2020 08:00

Aye. I thought it was Lou Reid for a while.....!

[amunro] 14/10/2020 07:43

RNS makes an interesting read!

[czar] 14/10/2020 07:19

No better guaranteed inflation proof income, this will continue to make new highs.

[sf5] 13/10/2020 13:25

Growing competion from Round Hill

[thewheeliedealer] 29/9/2020 21:16

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion includes SONG which I hold myself. We also chatted about loads of other Stocks and the outlook for Markets and as usual a fair bit of educational stuff with regards to Investing.

Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 32) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[melody9999] 29/9/2020 00:04

Buster - the ISA limit not an issue as funding would be controlled by the trading platform eg Jarvis or AJBell. But Primarybid requires the funds up front - so I guess the integration between Primarybid and each trading platform is more complex - you have got scale back to consider too.