Making Money Investing in Music Royalties

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Jan. 13 (Bloomberg) –- Round Hill Music Chairman & CEO Josh Gruss discusses investing in intellectual property and the outlook for the music industry with Deirdre Bolton on Bloomberg Television’s “Money Moves.” (Source: Bloomberg)


What is it like to invest in intellectual property?

There are several forms regulated by industry.

Intellectual property offers a differentiated return to the investor, something that is not correlated, which offers decent returns and sometimes cash flow yield.

More and more people are interested, if you are having -- are ever looking for money.

Probably not a hard sell at all.

One big investment that you just made is in big tractor music.

This is country music.

When we were talking about it, you said this was the largest growing music taste in america right now.

Country music surpassed classic rock as the most popular jon runyan our country.

All you have to do is go to the middle of our country to see that.

We thought it was important to differentiate into country.

We did not have any country music up until recently.

We bought this one catalog that will be the base for it: forward.

-- going forward.

You do get paid, but then more money goes to you if it is played in a commercial or a movie.

We underwrite the catalogs based on past performance.

We have a team that focuses on finding new off licensing opportunities for the song.

How long does it take to propose to you, this could be a pretty good cap block?

It depends on how iconic the catalog is.

That is first and foremost.

How embedded in the culture is the music, how popular is the music, how much cash flow doesn't generate?

I imagine your beatles holdings checks all the boxes across the board.


What about to what extent in general investing into ip allow me to take advantage of inefficiencies in the market.

We were talking about how difficult it was for global hedge fund macro managers.

All the information is out there.

In your case, there is still opacity.

This is one of those areas that is still inefficient.

With health care, it was a crowded area.

There was a time when it was not.

When we speak to investors about music publishing or royalties, nine out of 10 have not come across us.

It just goes to show that not a lot of people are following this space.

That is good for us.

When you look back to last year, what were some of the ones that put most money in the coffers, as far as movies, ring tones.

We have a catalog that has most of the bruno mars hits.

That is pretty much on fire right now.

His record that has all of these hits came out two years ago and is still in the top 100. and you get to be looked up to by tweens, which is not the easiest thing in the world.

We deal with the songwriters more than the artists.

It is not as sexy as you might inc.. but you are spending a lot of time on the west coast?

And nashville.

Thanks for coming in, john gruss, ceo of round hill music.

This text has been automatically generated. It may not be 100% accurate.


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