C2W Music back in the red
SONG publisher C2W Music Limited is back in the red after posting a loss of US$5,032 ($603,035) for its third quarter ending September 30.
Despite receiving royaltydriven earnings from publications throughout the quarter, the shortfall came from a lack of revenue for publishing fees, synchronisation royalties and copyright sales.
A year earlier, the company closed its financial statement with net profit of US$46,605 — the highest over the last two years which was heavily subsidised by copyright sales.
Company CEO Ivan Berry in a statement to shareholders said that C2W continues to work closely with the Caribbean performing rights societies to realise its rightful revenue.
“We continue to receive advances from the performing rights societies and this quarter we again received advances against royalties due to us until a resolve. We continue to work diligently towards such a resolve.
These advances contributed to some income for the company and are certainly a step in the right direction, in the performing rights societies resolving the ongoing issues of our royalty calculation and payment,” the CEO stated in C2W’s unaudited financial statements.
Consequently, net loss for the nine months ending September totalled US$30,681.
The company burned through another US$39,528, the bulk of which was spent on administrative expenses since the start of the year.
Concurrently, the company only recorded just over US$8,900 in sales and another US$4,077 from other income which could not supplement the cost of operations.
It had cash and bank balances of US$33,022 at the end of the period.
Last year the company announced plans to shift its business model from music publishing to include artiste management, under what it calls a 360 model.
C2W hopes the new initiative will increase revenue streams. The all-rights model would allow the company to earn from live shows, endorsement deals, sponsorship deals and any other revenues that come with an artiste.