In a move to bolster its label services, the Orchard has acquired RoyaltyShare Inc. The company has also made a strategic investment in U.K.-based Korrect. Both are royalty processing services. Terms of either deal were not disclosed.
“We’re always looking for ways to free up our clients time to allow them to focus on the creative side of their businesses, whether it’s through performance rights collections, sales and marketing, or premium video services,” the Orchard CEO Brad Navin said in a statement. “Artist royalty processing is a natural extension of our end-to-end solution, particularly as it follows our philosophy of providing complete transparency from point of purchase to artist payment.”
The Orchard has been very active lately. In the last month, it agreed to be completely owned by Sony Music Entertainment; it bought Blind Pig Records; and now it has just completed these deals with RoyaltyShare and Korrect.
The recorded music royalty processing platform will be a standalone system accessible to all clients and also connected to The Orchard Workstation, The Orchard’s client dashboard, through automated data sync, according to the company. In addition, both RoyaltyShare and Korrect are expected to continue serving their respective existing client bases, Navin said.
"With the complexity of streaming, our labels have been asking us for a solution to help them process royalty payments," Navin says. The Orchard already provides a similar solution in helping its labels to sort royalty payments to publishers. Moreover, the company is also involved in administering neighboring rights royalties, i.e. performance payments to master recording rights holders and artists from radio and other media.
On label royalty payments to artists, the current deals "enhance the Orchard's overall value proposition" for its label clients, Navin says.
“RoyaltyShare and Korrect share goals to extend our solutions to record labels of all sizes," Korrect managing director Simon Peters said in a statement. "We are excited to collaborate with like-minded businesses to build upon the next-generation, best-in-breed royalty processing system.”
RoyaltyShare CEO Steve Grady said the company was created in 2005 as a solution for indie labels in dealing with the transition to the digital world. "The challenges of royalty accounting have grown by magnitudes over the past decade," Grady said. "Our goal is to minimize the pain points around the business of running an independent label and, in The Orchard and Korrect, we’ve found partners who share the same ethos.”