WHAT THE COMPANY DOES
First Score Music (FSM) is a music publishing company that creates, protects, administers and monetises rights in musical compositions on behalf of musicians, songwriters and composers. Its music publishing royalties are the revenues due to the creators of the music – the underlying intellectual property.
Royalties are generated from several sources including: performance royalties from TV, radio, cable and satellite or live shows; synchronization royalties, when music is used in films, games, TV programmes and adverts; and mechanical royalties from CD and DVD sales or through services like iTunes.
HOW IT WORKS IN THE EIS
The Evolve Media EIS utilises rights on creative work, by investing in qualifying companies in the media and entertainment sectors like FSM, which offer predictable revenue streams for investors.
Having invested in FSM, The EIS can look to offer investors value through the revenues generated on the rights it owns to compositions. And because the revenues are predictable, the market for selling or refinancing those revenues to provide an exit for investors is relatively mature.
FSM owns the rights to the film score for the multi-Oscar, Golden Globe and BAFTA winning film Three Billboards Outside Ebbing, Missouri. The film has achieved a high profile through its awards success, and in 2018 is set for wide theatrical and online distribution.
FSM’s ownership of the score, secured for the next 70 years, represents the kind of predictable revenue stream in which the Evolve Media EIS Portfolios specialise.
WHAT FSM SAYS
The investment from Blackfinch has enabled us to continue focusing on building our business and investing in talented composers. We select individuals on the basis of their expertise in creating particular music for a given genre or medium.
In turn, once composers’ creative work starts to generate revenues on royalties payable from around the world, we are able to harness the potential in the global music publishing market for investors, which is worth approximately £4 billion.
CAPITAL AT RISK