Music Licensing Inc (SONG)

[horst]

Yep, accounts receivable for royalties,which are then payable to artists/songwriters/publishers, aren't the kind of "assets" that should bring any real value to shareholders. As a PRO, the company collects and then distributes royalties to rights holders. The company should take just enough of a piece of the pie to cover their administrative costs, but PROs should never be oozing in profits for shareholders, no matter how much they collect in royalties. If there's much of a surplus, it means they're not paying out enough to rights holders. NUVG is taking a tiny percentage, so they're acting responsibly in this regard. But it's disingenuous at best to PR income related to royalties as "shareholder value." Once collected, the vast majority of royalties are distributed: that's the entire point of a performance rights organization. That's why NUVG only lists revenue as $35K and a net loss of -$54K on the latest financials. The reality is they're barely skimming anything off the top from these royalties, which is good for rights holders, but it also means there's no shareholder value to speak of. Since the contracts and terms are in place already, they won't change the biz model, which means they'll probably start selling shares to make up their shortfall.

ASCAP and BMI are both not-for-profit, because there shouldn't be a profit motive for PROs.