- #Chinese pure music cracked
- #Chinese pure music driver
- #Chinese pure music license
- #Chinese pure music professional
#Chinese pure music license
It’s also rare that it’s a management team that understands what’s important - we believe HiM is singularly focused on maximizing shareholder value, as evident by management’s comments around license economics, growth, the dividend, and M&A policy. Importantly, working capital is a cash source for HiM as company grows, and HiM runs on negative equity if we strip out excess cash and investment property so ROE is infinite.Ī bit more about the numbers - 60%+ of HiM’s gross profit dollars come from IP licensing and is currently 70% semi-fixed (subject to renewals), leading to a strong recurring base. Despite the challenging environment prior to 2015, HiM had an impressive record of compounding organically and improving monetization, all with limited CapEx and negative working capital.
#Chinese pure music professional
It lasted 249 days as #1 on Taiwan’s largest music streaming platform and had been re-sung in other language versions across Asia. Point 1: Secular, exponential growth of the Chinese music industryĬhina used to be a market where piracy ran rampant, and no music label was able to collect much of anything – the industry as a whole ran at measly 100 million views.
#Chinese pure music driver
HiM is a trophy asset for Chinese media and Internet companies (BABA, Tencent, NetEase, etc.) who view music as a key driver of customer traffic/loyalty on their platforms. Recent IP-licensing comp by a competitor can point to as much as tripling or quadrupling 2017 EPS. 2017 YE, translating to 6% dividend yield based on guided payout ratio.
#Chinese pure music cracked
Luckily for all of the young Bob Dylans in China, their world was turned upside down for the better at end of 2014 – almost overnight, the government and the tech giants of China alike cracked down on music piracy like nothing before – and this industry went from a dormant quagmire to growing 50-60% per year in a matter of weeks.
Many talents starved chasing a dream pulverized by piracy, and for years, the joint selfishness of the public and a busy government turned their blind eyes to this issue – and it’s in those days that music died. Never before had piracy decimated an industry so much and for so long – throughout the entire 1 st 15 years of the 21 st century, Being an aspiring singer in China was synonymous to being broke - a sad state of affairs – and there was no way of earning a living making songs. Just two years ago in 2015, this figure was $150 million for the entire China, that’s 1/40 of the US. Take a wild guess of how big the Chinese music industry was in terms of downloads, streaming, and physical forms – with the US being at $6-7 Billion today. (Editor’s note: As there is no U.S.-traded ticker, investors will have to trade on the Taiwan exchange under the ticker 8446:TT)
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