Round Hill Buys Howie Day Catalog in Auction
Round Hill Music has won an auction to buy the publishing catalog of Howie Day, as well as the royalty income stream from master recordings of his work, including the hit song "Collide."
According to sources, the Day publishing catalog generates a net publisher's share of about $51,000 annually, while the master recordings income stream generates about $56,000 annually.
The Day catalog has U.S. sales of 1.06 million album units and 2.3 million track downloads, according to Nielsen SoundScan, with the bulk of track downloads coming from "Collide," which last year had total scans of about 110,000 units.
The Day catalog was put up for sale as part of Chapter 11 proceedings. Sources say the Round Hill winning bid was about $950,000, which was about a nine-times multiple on earnings. The bid was binding and Round Hill closed the transaction late last week.
"It's unfortunate times in our business and that while we are proud to represent such a great hit, we are also sobered by the knowledge that this property was made available by Mr. Day's bankruptcy, which is very unfortunate," Round Hill president Neil Gillis said in a statement. "In the end, we would have preferred to purchase the song directly from Mr. Day thus directly benefitting him, however this was not our choice to make."