C2W Music starts seeing royalty revenue
CASH-STRAPPED song publisher C2W Music made $2.1 million in revenue from royalty payments from Barbados during its fourth quarter in 2013.
"These earnings have come out of the exploitation of copyrights and more specifically have been earned through the 'Performing Right' collections of radio broadcast," said the company in a release to the Jamaica Stock Exchange. "The amount received thus far totalled US$20,643.37 ($2.1 million)."
Up to its third quarter last year, the company recorded just over US$8,000 ($800,000) in sales since commencing operations in mid-2012.
C2W accumulated losses of US$1.1 million up to September 30, 2013, even while other income (mostly sponsorship) of US$108,000 failed to cover the huge cost of operations.
The board had projected that it would earn US$1.32 million from royalties in 2012, with the expectations that income would grow to US$6.4 million by 2016.
The song publisher said that it continues to work closely with all Caribbean performing rights societies to create proper integration of its systems, which will show an accurate collection of royalties from the region.
"Other than our own music catalogue, we sub-publish two of the world's largest music publishers, BMG Chrysalis and Warner Chappell," said C2W in its notification to the JSE. "We are hopeful that our collective efforts would be recognised by the second quarter of 2014 and onwards, resulting in more royalty collections."
It took 16 months for the company to burn through the US$1.47 million it raised on the JSE, receiving US$1.28 million after IPO costs in June 2012.
The bulk of the company's spending — US$850,000 from start-up in 2012 to September 30, 2013 — was on administrative expenses, while US$350,000 was spent on songwriting camps and development expenses.
Consequently, C2W had less than US$2,000 in cash and cash equivalent at the end of September, although it reports having other current assets valued at just over US$34,000, most of which is classified as advances to songwriters.
Back in May, C2W's CEO Ivan Berry said that the company's board was working on coming up with "alternative ideas to allow us to continue doing what we are doing to get enough cash for the next nine months".
Last month, the song publisher said it is looking at taking on outside investors and plans to bring a proposal to current shareholders for consideration through an extraordinary general meeting (EGM), once the "right strategic partner" has been identified.