[Fmpro] Getty QQQQQQ's

[Scott Szabo]

>From Dana from Serious Vanity Music [dana at seriousvanity.com]

"Getty Images has now launched a music licensing service, a move that
follows the recent acquisition of Pump Audio.  Getty, a massive repository
and licensor of visual assets, purchased Pump Audio in June to power a
diversification into music.  The $42 million buyout is now manifesting
itself as Soundtrack, a licensable collection of roughly 20,000 songs from
independent artists and composers."

>From kirbyko3 at aol.com

"...their agreement is a non-exclusive licensing arrangement with the
writers and master owners. They act as agent for your work that's in their
catalog. They keep 50% of the licensing fee and 50% of the publishing PRO
income.
You keep 50% of the PRO income and 100% of the writer's share of PRO."

>From Les

"No the question still is, what did they sell the Getty folk;
1	A business model only?
2	YOUR product?

If it's your product.. where is your share of the profit from the sale?"


Let's see... $42,000,000.00 divided by 20,000 songs = $2,100.00 per song.
50/50 split on this license = $1,050.00 per song. Now that assumes that
Getty is simply buying the "music only" assets of Pump Audio. If Getty is
buying the company including all assets (i.e. buildings, computer networks,
trademarks, receivables, stocks, client lists, and inventory (read SONGS!!!)
then the number will have to be adjusted lower to reflect the value of the
other parts of the business. But the inventory (songs) definitely will have
a value attached to it in the "whole company sale" model. Simply divide the
new value of the "inventory only" number by 20,000 and again by 2. That will
give you the value of each song.


Scott Szabo