– 16 October 2020
– 50% of a film is typically accompanied by a musical score yet represents around 1% of its budget
– The Fund’s IP captures recurring royalty revenue streams from streaming platforms such as Netflix and traditional forms of TV
– Value of global streaming services in 2019 was $42bn and is forecast to grow to $184bn by 2027
– The five largest global streaming platforms are forecast to have 553m pay subscribers by 2025, a 55% increase from current 357m
Individuals are being given the opportunity to invest in the rapidly expanding global market for streamed video, film scores and comic adaptations with the launch of a new fundraise by the Atlantic Screen Media EIS Fund (“the Fund” or “Atlantic”).
Atlantic is raising £10 million from investors so they can access this booming market via a tax efficient vehicle. The way in which consumers view and listen to music, film and television is undergoing a revolution across the world and demand for media content from global streaming services is reaching new heights as people stay home due to Covid-19.
The Fund was established in 2017 to provide investors with the opportunity to invest in the intellectual property content of a broad range of media companies spanning music scores for film and television, and comics, with future plans to invest in video gaming. Owners of music scores are paid royalties by the minute when the film is watched across any medium and comic books are the single largest contributor to film IP generating fee royalties for the IP owner over many years. Atlantic Screen Media is well placed to maximise this perpetual income stream through its investee companies.
Video and music streaming services are driving content demand globally, underpinned by broadband penetration and a proliferation of hand-held devices. The value of global video streaming services in 2019 was $42bn and is forecast to grow to $184bn by 2027. The five largest global streaming platforms are forecast to have 553 million pay subscribers by 2025, a 55% increase from the current 357 million. In the second quarter of 2020, 10 million subscribers joined Netflix, bringing its total number of new subscribers to 26 million in the first half of the year. In contrast, it saw 28 million new subscribers for the whole of 2019.
Atlantic’s expertise is in selecting businesses that create IP content that is ready for exploitation giving investors exposure to content that will generate predictable, recurring income over the long-term. The Fund is underpinned by the inherent value and economic life cycle of its comic and musical score IP. In the last three years the Fund has invested in AS Comics Ltd, a comic book development company and in Raven Scores Ltd, a film and television music scores business.
Commenting on the announcement, Simon Fawcett, Chief Executive of Atlantic Screen Media Fund, said: “Global consumption of streamed video, film and music content is expanding exponentially and we are ideally placed to benefit from this revolution. With a stable of owned media assets producing recurring revenues over many years, we have the track record and industry expertise to secure significant returns for investors in the Fund.”
Raven Scores has invested in 23 music scores for high profile films such as At Eternity’s Gate starring Willem Dafoe, Opheliastarring Daisy Ridley and Naomi Watts, and The Tax Collector starring Shia LaBoeuf. Raven Scores invests a maximum of £200,000 on a film score and over five years aims to recoup c.120% of what it invests; at the same time it owns an asset which has embedded value and generates royalties in perpetuity. To date Raven Scores’ investments typically deliver a c.200% return over five-years.
AS Comics has deployed funds to create 12 new comic book titles which have options to be converted into TV and film productions. It invests a maximum of £75,000 in launching a new comic book IP, with an aim of selling the IP to a production house to convert into a TV programme, film or games format once the comic is established.
The management of the Fund are senior music and film industry executives who have managed or owned music catalogues of some of the largest media groups in the world. They have an impressive track record spanning over 30 years having previously invested in multiple successful IP projects.
Closing Date: April 5th, 2021
Minimum Investment: £10,000
Minimum Fund Size: £500,000
Maximum Fund Size: £10 million
Target return: 10% annual Internal Rate of Return
The Enterprise Investment Schemes (EIS) was introduced by the UK Government in 1994 to support small unquoted companies by helping them to raise investment funds from investors seeking tax reliefs thereby enhancing returns and reducing the risk of investing in those early stage businesses.
Atlantic Screen Media
Simon Fawcett, Chief executive Tel. +44 (0)207 499 0330 / firstname.lastname@example.org
Alex Glover, Director Tel. +44 (0)207 499 0330 / email@example.com
James Henderson Tel. +44 (0)7774 444163 / firstname.lastname@example.org
George Hudson Tel. +44 (0)7803 603130 / email@example.com
Notes to Editors
The Atlantic Screen Media EIS Fund will focus initially on two clear IP segments: music scores for film and television, and comic books. It may in due course invest in video games development. Investment funds will be used to subscribe for shares in companies operating predominantly in these segments of the industry. The aim is to focus on creating portfolios for investors which have asset backing and solid income streams, whilst also benefiting from favourable tax reliefs which are supported by the UK Government. More information on Atlantic can be found here: www.atlanticscreenmedia.com and AS Comics here: www.ascomics.com
Atlantic Screen Media Ltd, registered in the United Kingdom, Company No 10869489 and for the purposes of the Atlantic Screen Media EIS Fund only is an appointed representative of Kin Capital Partners LLP, which is authorised and regulated by the Financial Conduct Authority (FCA) with firm reference number 656789. Further details are available via the FCA register. Investment in EIS Funds is high risk and will not be suitable for all investors. Only individuals that have confirmed to Atlantic Screen Media Ltd that they meet the FCA’s criteria of being either a High Net Worth Individual, a Sophisticated Investor or alternatively an appropriately qualified financial intermediary has confirmed an investment in the Atlantic Screen Media Fund may be appropriate may receive further information on the Fund. Your capital is at risk. Investment in EIS Funds involves a high degree of risk and Investors could lose part or all of their capital invested. Past performance is not a guide to future performance and may not be repeated. The value of investments can go down as well as up. You should consider the Fund to be a medium to long term investment. The Fund gives exposure to shares that will be unquoted, which carries the risks of illiquidity, loss of investment and dilution. Tax reliefs received are subject to individual circumstances and there are no guarantees that Investors will receive or retain any tax advantages. Full details of the risk factors can be found in the Fund memorandum, which should be read in full before deciding whether to invest. Investors are strongly advised to seek independent legal, financial and tax advice before making a decision to invest.