New York-based Round Hill Music LP has acquired Austin-based Rident Royalties, expanding its neighbouring rights platform, Sound Hill, with the addition of 1,000 new clients.
Financial terms of the deal were not disclosed in a press release announcing the acquisition on Wednesday (September 13).
Round Hill Music made the announcement just days after Concord confirmed that it is buying the entirety of Round Hill Music Royalty Fund (RHM), the UK-listed fund managed by Round Hill Music, in a deal that values RHM at about USD $468.8 million.
Round Hill Music LP says it currently manages songs worth around USD $1.3 billion.
If the Concord deal is approved by shareholders, Round Hill Music will still continue to manage various private equity funds and music rights worth approximately USD $900 million (excluding the assets involved in the Concord deal).
(The Concord deal only covers music assets from Round Hill Music Royalty Fund and not NY-headquartered Round Hill Music’s regular operations or its team of 70 people.)
Round Hill Music said its acquisition of Rident Royalties brings additional expertise, industry networks, technology and territorial reach to Sound Hill. As a result, Sound Hill’s client roster will now include over 1,200 performers and 120 record labels. Notably, the platform will also take the lead in the previously untapped markets of production music and film/TV score neighbouring rights.
“Together, our experience, global neighbouring rights affiliations and client portfolios will provide mainstream clarity on one of the least understood revenue streams in the music industry, and ultimately ensure that rightsholders are paid quickly and accurately.”
Chris Kennedy, Rident Royalties
Rident Royalties was established in 2016 by Chris Kennedy, a former employee of Sound Exchange. The company now has direct relationships spanning 64 Collective Management Organizations (CMOs) across more than 45 territories.
Sound Hill, founded in 2021 by Round Hill and led by former PPL client manager Róisín Brophy, manages a diverse range of artists, including Alice Cooper, Alice In Chains, David Coverdale, Goo Goo Dolls, and the estate of Ronnie Van Zant. Chris Kennedy and Róisín Brophy will jointly lead Sound Hill as co-heads following the acquisition.
Neighbouring rights revenue covers royalties and licensing fees required for payment by broadcasters to the artists, producers, and songwriters responsible for the music they broadcast.
This revenue stream extends beyond broadcasters to include various enterprises like bars, retailers, gyms, and nightclubs, which, in many countries, are required to remit fees for the music they utilize.
“The combination of Rident and Sound Hill’s advanced repertoire, claims technology and deep expertise creates an unequalled service provider in this area of the market, which has strong growth forecasts underpinned by the music industry’s overall positive outlook.”
Josh Gruss, Round Hill Music LP
“Over the last three years, under the leadership of Róisín Brophy, Round Hill Music has established a well-regarded and high performing neighbouring rights platform in Sound Hill, serving performers and rightsholders across the globe,” said Josh Gruss, CEO at Round Hill Music LP.
“The combination of Rident and Sound Hill’s advanced repertoire, claims technology and deep expertise creates an unequalled service provider in this area of the market, which has strong growth forecasts underpinned by the music industry’s overall positive outlook. With this new addition to its stable, Round Hill will continue to apply its expertise to managing and maximizing the value of our music catalogues.”
Chris Kennedy, Owner/President of Rident Royalties, added: “Sound Hill and Rident share the goal of providing an unparalleled level of representation and personal service to our clients. Together, our experience, global neighbouring rights affiliations and client portfolios will provide mainstream clarity on one of the least understood revenue streams in the music industry, and ultimately ensure that rightsholders are paid quickly and accurately.”
Music Business Worldwide