By Jess Jones
Shares in One Media IP rose as much as 18 per cent on Tuesday afternoon, after the digital music rights firm announced it has snapped up a new catalogue of iconic grooves.
The AIM-listed content provider bought the licensor’s income share of the “Entertain Me” catalogue of rights which includes over 15,000 tracks from top artists such as disco queen Gloria Gaynor and R&B soul group The Drifters.
“That’s Amore” vocalist Dean Martin and “Over The Rainbow” singer Judy Garland, among other vintage classics from the 1940’s to the 1970’s, also bring a “sweet spot of music nostalgia” to One Media, said boss Michael Infante.
Funded by existing cash, the acquisition is expected to increase income straight away.
The acquisition allows One Media to “strategically consolidate certain income streams where we also have a portfolio exposure to some of the tracks in the Entertain Me catalogue,” said Infante.
“It also adds a proven new revenue source at an attractive multiple,” he added.
Music distribution company The Orchard has made One Media’s songs available on major platforms such as Amazon Music, Spotify and Apple Music since 2009.
Earlier this summer, One Media reported its revenue was mostly driven by royalties earned from its actively managed music and video rights portfolio, which includes the intellectual property rights to songs from Take That, Culture Club and Don Williams.
The company is currently working on growing its Technical Copyright Analysis Tool (TCAT) service, an anti-piracy software that can detect digital copyright infringement.
