Yellowcake employs a technology-based approach employing extensive analytics and AI to speed up our due diligence and decision-making processes.
Aquisition of music rights
We acquire sound recordings, record labels and publishing rights, representing a curated collection of exceptional, high-performing catalogs. Our goal is to acquire the entire back catalog and work hand in hand with the seller, whether artist or label, in coordinating a uniform approach to maximizing the value of the back and future catalogs through a unique technology driven approach. We consider all acquisitions starting points in a long-term relationship. We view any seller as a partner rather than just another transaction
Research and Identification:
The first step is to identify potential music or publishing catalogues that align with our company's goals and strategies. This involves evaluating the quality, diversity, and financial performance history of the target assets, as well as identifying potential synergies for future development. Our research typically revolves around genre, age of assets, and unique characteristics of the target and the seller to see if we can establish a mutually beneficial relationship for new content creation.
Negotiations and Purchase:
Once we have identified a catalogue of interest, the next step is to initiate negotiations with the current rights holders. This mainly involves discussions on deal terms, the financial arrangements, and any control or management rights held by the respective parties after the deal is consumated. The negotiation process can be complex and may require legal and financial expertise.
Due Diligence and Completion:
After reaching a preliminary agreement, the due diligence phase begins. This involves conducting a thorough examination of the catalogue's assets, rights, revenue stream, legal status, and any potential liabilities emcumbering the assets. It's crucial to ensure that there are no undisclosed or undiscovered issues that could impact the value of the acquisition. Once due diligence is completed and both parties are satisfied, the acquisition is finalized with ownership of the catalogue transferred according to the agreed upon terms.
To ensure the vitality of its catalogues, Yellowcake recognizes the necessity of maintaining continuous engagement with existing audiences while also establishing avenues for new audience penetration and engagement.
Failure to keep catalogues active with high engagement could lead to revenue decay over time. This is precisely where Yellowcake's expertise comes into play. We are active managers of our catalogs with expertise in identifying unexploited areas and expect to have an immediate and lasting impact on the performance of the assets.
Management of Music Rights
We acquire sound recordings, record labels and publishing rights, representing a curated collection of exceptional, high-performing catalogs. Our goal is to acquire the entire back catalog and work hand in hand with the seller, whether artist or label, in coordinating a uniform approach to maximizing the value of the back and future catalogs through a unique technology driven approach. We consider all acquisitions starting points in a long-term relationship. We view any seller as a partner rather than just another transaction
Rights Acquisition and Analysis:
The initial step involves acquiring the necessary rights to manage and represent the music. This can include negotiating agreements with artists, songwriters, publishers, and other rights holders. Once the rights are secured, a thorough analysis of the acquired rights is conducted. This involves cataloging the musical works, identifying the usage rights associated with each work (e.g., mechanical, performance, synchronization rights), and understanding any existing licensing agreements.
Monitoring and Licensing:
Once the rights are acquired and analyzed, the focus shifts to monitoring the usage of the music. This involves keeping track of where and how the music is being used, whether in live performances, broadcasts, streaming platforms, commercials, films, or other media. Effective monitoring often employs technology to track digital usage. Based on this monitoring, the music rights management company ensures that appropriate licenses are issued to users and that the rightful rights holders receive their due royalties.
Royalty Collection and Distribution:
Managing music rights involves collecting royalties generated from the licensed use of the music. This can include mechanical royalties from sales and streams, performance royalties from live performances and broadcasts, synchronization royalties from placements in visual media, and more. The management company uses databases, performance rights organizations (PROs), and licensing platforms to track usage and collect payments. Once collected, the earned royalties are distributed to the respective rights holders, artists, songwriters, and publishers according to pre-agreed terms and contractual obligations.