Reservoir Investor Presentation Deck
Recorded Music 101
IP RIGHTS:
• Collection of master recordings owned by a record label or performing artist
PROTECTED ASPECT OF WORK:
• Sound recording of a composition
RESPONSIBILITY OF RECORD LABEL: Monetization & exploitation
Identify songs and work with producers and artists to create, market and
promote recordings.
Manufacture and distribute physical product
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Pitch songs for use in film, TV, advertising, videogames and others; license
the right to use the recording; collect royalty fees for usage
Typically owns master recording outright
INCOME:
• Royalty income paid only on specific recording of a song
Typically split between label (NLS) and performing artist (artist royalties)
KEY CASH FLOW METRICS
Revenue / Sales / Royalties
(-) Artist Royalties
(-) Manufacturing & Distribution Costs
= Net Label Share (NLS)
(-) Operating Expenses
(Artist & Repertoire, Licensing,
G&A, Talent Expense)
= = EBITDA
Amortization
Advances
Recoupments
Capex
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