#119: Alexander Gramatzki; Investing In Music Royalties

To watch this episode on YouTube, click here.
Summary

The music industry is growing for the fourth consecutive year,
driven by the rise in online streaming. Platforms like Spotify,
Youtube, Amazon Music, Pandora, and others are revitalized the
industry which presents an opportunity to acquire intellectual
property rights that pay royalties each time a song is streamed.
Companies like Facebook, TikTok, and SnapChat have also recently
announced that they will start paying royalties for music that is
being used on their platforms which will only further increase
the value of royalties are new users are starting to upload
videos. The ICM Crescendo Music Royalty Fund (the “Fund”) is
positioned to acquire songs in the $100,000 to $5 million range
based on analyzing data such as historical royalty revenue and
factors like artists tour schedule, number of playlists a song is
on if the artists are releasing songs in the future, amongst
other variables. 


 


 
Data Analytics

To efficiently and objectively evaluate acquisition
opportunities, the ICM Investment Management Inc. (the “Manager”)
has developed an algorithm that will offer support in the
acquisition process of material catalogs. Currently, 18 different
input variables are analyzed to help predict the number of future
streams of a particular asset. While machine learning mechanisms
come to a conclusion without human intervention, a live tech
expert will determine which input variable is useful and will
place weights on each. While the model generates a certain
prediction, the way we weight the variable will influence the
anticipated future income streams.


 
Partnership

A Canadian music royalty fund was launched under the partnership
between the Manager and Crescendo Royalty Corporation as an
advisor to the Fund. Investors now have an opportunity to own
music royalties and benefit from the rise in music and video
streaming, generate incremental income, and have fun while doing
it. ICM Asset Management was founded in 2003 and currently has
over $1 billion in assets under management in real estate and
venture capital investments. Crescendo Royalty Corporation has
been acquiring royalties since 2017 with interest in hits like
LaLaLa by International pop star Shakira who performed at Super
Bowl LIV and Blame it on the Alcohol by legend Jamie
Foxx.  


 


Additionally, Devo Harris was brought on as an Advisor and he is
a Grammy Award-winning producer and songwriter who discovered,
signed, and produced EGOT winner John Legend and has written for
Kanye West, Britney Spears, Aretha Franklin & more.


 
Own Your Favorite Song

On the ICM Crescendo Music Royalty Fund website, you can submit a
song you would like to own. The team will track down the rights
holders and will attempt to acquire an interest in the song you
submit. By investing in the fund, you can therefore potentially
own a piece of your favorite songs. 


 
Make Money While Listening to Music

The Fund also has a Spotify playlist so you can track all the
songs they have acquired. If you listen to the playlist, the Fund
will also make money every time you listen to a song on the
playlist. To follow the playlist click this link.


 
How to Invest

Canadians are able to invest into the Fund directly through the
Manager or through their own investment advisor. 


US residents who are accredited investors can invest into a
Delaware based Limited Partnership. 


 
Show Links

ICM Crescendo Website


Funds Spotify Playlist


LinkedIn Page


 
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