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CSW STRUGGLES TO GENERATE CASH FROM SONG CATALOGUE Featured

Entertainment News Written by  AKA Thursday, 05 December 2013 19:59 font size decrease font size increase font size 0
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What does it take for Caribbean songwriters to earn money? It seems that music publishing start-up CSW is struggling to generate income The company's 900 song catalogue as well as sub-publishing arrangements with BMG Chrysalis and Warner Chappell to collect royalties on their behalf for a percentage, have failed to generate enough cash and the company may need an outside investor to continue to bankroll its operations. CSW took 16 months to blow through US$1.47 million it raised on the Jamaica Stock Exchange (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 last year to September 30, 2013 — was on administrative expenses, while US$350,000 was spent on songwriting camps and development expenses.

But the start-up has had difficulty generating income.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.
Instead it recorded just over US$8,000 ($800,000) in sales since commencing operations last year and accummulated 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.
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
Read 757 times Last modified on Monday, 23 February 2015 13:11

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