Los Angeles-headquartered GoDigital Media Group has an interesting strategy underpinning its entertainment business.
The firm owns both content (largely via music distribution / acquisitive rights company Cinq Music) plus its own broadcast channels / digital networks, which – where appropriate – can license Cinq’s repertoire and help expand its global audience.
GoDigital’s owned properties include Mitú (an entertainment/lifestyle network for ‘LatinX’ audiences in the US), Yoga Works (which runs online classes set to music, a la Peloton), Latido Music (a music television network for fans of Latin Music), and VidaPrimo (which claims to be the largest Hispanic-targeted multi-channel network on YouTube for Latin music).
GoDigital CEO Jason Peterson has previously explained to MBW that a key strand of his firm’s strategy is the principle of “IP ownership and a primary [consumer] demand-generation function” both sitting under one umbrella.
Which all helps to explain why Cinq Music Group is so central to GoDigital’s plans, and why GoDigital has invested heavily in Cinq since the latter firm was founded in 2012.
Today (April 19), GoDigital has confirmed that it’s investing its largest funding round yet into Cinq – USD $100 million – in order for Cinq to “purchase music rights, both masters and publishing, and to further its international expansion”.
In a press release, GoDigital confirmed that its music portfolio is backed by Bank of America as lead lender, with East West and Union Bank rounding out the syndicate.
Additional details of the $100 million Series D funding round were not disclosed.
GoDigital’s $100 million investment into Cinq Music comes after its previous investments into the music company, including a $20 million cash injection in 2017, and a $40 million funding round in 2019.
The 2017 round was partly used by Cinq for a $10 million-plus acquisition of a master rights catalog recorded by hip-hop star T.I; the 2019 round was partly used to buy the Beluga Heights label, including its share of the Jason Derulo catalog.
Separate to Cinq, in 2021 GoDigital acquired another well-known music biz company – royalty-advancing firm Sound Royalties – for what MBW understands was a sum in the high eight-figures.
“Our continued ability to fund Cinq Music for its acquisitions is grounded in music rights being a durable annuity-like asset,” said Jason Peterson of the new $100 million investment round.
“Across our business units the past four years, GoDigital has invested more than $350 million through multiple capital vehicles.
“Cinq is having great success scaling its label, distribution and publishing capabilities while executing GoDigital’s proven business model for global rights management.”
Jason Peterson, GoDigital
“Our 2019 series C funding for Cinq helped acquire the iconic Beluga Heights record label and artist Jason Derulo’s catalog.
“Cinq is having great success scaling its label, distribution and publishing capabilities while executing GoDigital’s proven business model for global rights management.”
Cinq Music Group President, Barry Daffurn, added: “The ever-increasing level of support we receive from GoDigital Media Group continues to help us move our label toward being the number one destination for music creators.
“We are excited for what the future holds, being a preeminent partner to rightsholders in large and fast-growing markets around the world.
“Today we have boots on the ground in 11 countries and territories including the U.S., Mexico, Colombia, Argentina and South Korea, with more to come.”
“Today we have boots on the ground in 11 countries and territories including the U.S., Mexico, Colombia, Argentina and South Korea, with more to come.”
Barry Daffurn, Cinq Music
Added GoDigital CFO, Hunter Paletsas: “The whole GDMG family is proud of what Cinq continues to accomplish. Cinq is truly fulfilling GoDigital’s mission ‘to inspire happiness by sharing creativity’.”
Cinq’s repertoire spans more than 47,000 sound recordings, and includes Latin music artists such as Anuel AA, Arc Angel, Bad Bunny, Daddy Yankee, Fuerza Regida, and Natanael Cano, plus music recorded by pop and hip-hop stars such as Janet Jackson, Jason Derulo, Sean Kingston, and T.I.
Last year, Jason Peterson told MBW of Cinq Music’s strategy: “We have differentiated ourselves in the music industry, typically, by working in emerging fast-growing markets around the world.
“Our repertoire has a majority weighting in Latin music. But we’re also making heavy investments in English-language pop, R&B, and hip-hop that can travel.”
In addition to the likes of Cinq Music and Sound Royalties, GoDigital Media Group also owns AdShare, a social media rights manager for music and video which helps rights-holders monetize fan engagement on YouTube, Google and SoundCloud.
AdShare has previously announced that its video network passed the 100 billion views milestone in the 12 months ending April 1, 2021.Music Business Worldwide