US-based finance firm Sound Royalties, which was recently acquired by Cinq Music Group [17 articles]” href=”https://www.musicbusinessworldwide.com/companies/cinq-music-group/”>Cinq Music parent GoDigital in a ‘high eight-figure’ deal, is adding tour financing to its suite of services.
Sound Royalties offers royalty advances of anywhere from $5,000 to the tens of millions.
It does this by advancing artist, producer and songwriter royalties paid through music labels, distributors, publishers and PROs such as Broadcast Music, Inc (BMI) [225 articles]” href=”https://www.musicbusinessworldwide.com/companies/broadcast-music-inc-bmi/”>BMI, The American Society of Composers, Authors, and Publishers (ASCAP) [274 articles]” href=”https://www.musicbusinessworldwide.com/companies/the-american-society-of-composers-authors-and-publishers-ascap/”>ASCAP, SESAC [109 articles]” href=”https://www.musicbusinessworldwide.com/companies/sesac/”>SESAC, SoundExchange and more.
Now, Sound Royalties will also offer advances for artists and performers seeking tour and production support.
According to Sound Royalties, artists generating more than $5,000 in annual royalty income and or with touring agreements from major promoters can contact the company “to learn more about the program and receive a free analysis and valuation of their royalty earnings”.
Sound Royalties says that the new touring advance program will work similarly to a “typical advance” with the company, but with customizations as it pertains to touring income versus music royalties.
Each qualified performer will have the opportunity to access funding based off of their royalty streams or their guaranteed negotiated tour agreement.
In a media release announcing the expansion into tour financing, Sound Royalties notes that “touring is one of the most lucrative ways for musicians and performing artists to generate revenue and is part of the heart of music culture”.
It adds: “In 2019, the touring industry generated gross revenues of $5.55 billion dollars – a stark contrast to the $1.2 billion it generated in 2020 as a result of COVID-19.”
In March 2020, at the start of the pandemic, Sound Royalties launched a $2 million fund from which music creators impacted by Coronavirus could obtain no-fee royalty advances.
The company has worked with the likes of DJ Khaled, Lil Wayne, Pitbull, and Wyclef Jean.
“Many artists and performers have expressed a need for additional financial support as we continue to navigate through the unpredictability of live events.”
Alex Heiche, Sound Royalties
Alex Heiche, CEO of Sound Royalties, said: “The pandemic is continuing to have a ripple effect in several areas of the music industry.
“What we thought was going to be a celebrated return to touring and live music experiences during the summer of 2021, has turned into a fractional victory, with lots of artists lacking the funding needed to get their live shows back out on the road.”
“Many artists and performers have expressed a need for additional financial support as we continue to navigate through the unpredictability of live events.
“It only makes sense for us, the leading financial services company in the music industry, to offer something of value to these creatives, keeping them funded, motivated and helping restore a sense of normalcy to their life.”
“As the company that pioneered financing for music creatives without risk to ownership of copyrights, this new program continues Sound Royalties’ tradition of offering valuable artist and industry friendly funding solutions.”
Michael Bizenov, Sound Royalties
Michael Bizenov, President of Sound Royalties added: “As the company that pioneered financing for music creatives without risk to ownership of copyrights, this new program continues Sound Royalties’ tradition of offering valuable artist and industry friendly funding solutions.”Music Business Worldwide