RCS - Round Hill Music - Supportive Streaming Market Update
31/10/2022 07:00
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RNS Number : 5756E Round Hill Music Royalty Fund Ltd 31 October 2022
31 October 2022
ROUND HILL MUSIC ROYALTY FUND LIMITED
("RHM" or the "Company")
Supportive Streaming Market Update
The Board of Round Hill Music Royalty Fund Limited notes the ongoing
supportive market environment for streaming revenues demonstrated by a number
of recent industry updates that are anticipated to have a positive impact on
Company revenues.
The Company's exposure to positive revenue trends in streaming services is
significant, with approximately 50% of RHM's revenues derived from digital
service providers such as Spotify and Apple Music across master, mechanical
and performance royalties.
Streaming subscriber growth continues to be the fastest growing area of the
music business, and this week alone Spotify grew its premium subscriber base
by an extra 7 million in Q3 2022, 1 million above its target. Spotify, the
largest of the streaming services, now boasts 433 million active users,
including 188 million subscribers (an increase of 15 million so far in 2022),
across 183 markets.
The Company also notes the recent news by Apple Music to increase its monthly
subscription price for its streaming platform in the UK and the US by £1 and
$1, respectively. As the number of subscribers, songs and subscription prices
on the streaming platforms increase, it is anticipated there will be a net
positive impact on RHM's revenues.
These updates follow the positive news announced on 1 July 2022 where the US
Copyright Royalty Board upheld the 44% staggered increase in streaming
mechanical royalty fees dating back to January 2018 which accordingly is also
expected to result in increased fees payable to the Company.
Josh Gruss, CEO of Round Hill Music, the Company's investment manager,
commented:
"We are pleased by the latest news from Apple Music and Spotify, which will
enable artists and songwriters to earn more for the streaming of their music.
This positive step shows the growing financial recognition of music on
streaming services, and the growing impact these services have on the value of
artists and songwriters. Once again, as we saw in the Covid-19 pandemic, the
lack of correlation of music consumption to other asset classes and the
financial market is being proven.
"The growth of streaming platforms has been phenomenal, growing from a
subscriber base of 11 million in 2015, to 88 million in 2021, for Apple Music.
Both platforms, along with many other digital service providers, have
revolutionised the way people consume music and we expect the streaming market
to continue to grow and positively impact the Company's revenues."
FOR FURTHER INFORMATION
Round Hill Music
Josh Gruss, Founder and CEO via Buchanan below
Steve Clark, COO
Cenkos
Sales:
Justin Zawoda-Martin +44 20 7397 1923
Daniel Balabanoff +44 20 7397 1909
Andrew Worne +44 20 7397 1912
Corporate:
James King +44 20 7397 1913
Will Talkington +44 20 7397 1910
Buchanan
Charles Ryland +44 20 7466 5107
Henry Wilson +44 20 7466 5111
Hannah Ratcliff +44 20 7466 5102
JTC
Mariana Enevoldsen +44 1481 702 485
Notes:
Terms defined in the prospectus published by the Company on 19 October 2020
and the supplementary prospectus published on 3 November 2020 (together the
"Prospectus") shall have the same meaning when used in this announcement.
The Company is a non-cellular Guernsey company. The Company's Investment
Objective is to provide investors with an attractive level of regular and
growing income and capital returns from investment primarily in high quality,
music intellectual property. In order to achieve its Investment Objective the
Company will invest in a songwriter's copyright interest in a musical
composition or song (being their writer's share, their publisher's share and
their performance rights) together with the rights in the recording of the
musical composition or song (known as the master recording rights) together
with all such rights and assets considered by its investment manager, Round
Hill Music LP, to be ancillary thereto.
Founded in 2010, Round Hill is a fully integrated owner and operator of music
copyright properties. With offices in Nashville, Los Angeles and London,
Round Hill has an experienced management and investment team with an
established reputation and extensive experience in the music and finance
industries.
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