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The MQA Revenue Plan.
Fees and Royalties. The cost of which will be passed on to YOU.
From MQA's "Report and Financial Statements", filed with British government, public record.
According to filings on the UK government website you linked, Bob Stuart is currently on the board of directors for both MQA and Meridian Audio. In addition it states that both companies are controlled by Reinet Investments S.C.A. - "Nature of control - Ownership of shares - 75% or more".
Oh it gets better. In 2015, Meridian sold "intellectual property" for approx 13.5 Million, which allowed them to turn a small profit, essentially the only profit they made after 40 years in business. Let's
take a wild guess who they sold that "intellectual property" to". It gets easier to guess when you look at MQA's capital expenditures.
That would be Reinet the ultimate controlling party. See page 34 Note 24 of the June 7, 2015 Group of Company Accounts.
...a simple case of follow the money...?
It's always been follow the money. I have too much respect for Grant Thornton and BDO (the auditors of Meridian Audio and MQA Ltd) to think anything out of the ordinary was going on.
A better explanation is we are seeing parts of the transactions where Bob Stuart sold most of his stock Meridian Audio stock and MQA Ltd was setup as a separate company.
In the short-term MQA Ltd must reduce its burn rate. In 2016 it was about $360,000 a month.
Oh, I did not suggest anything illegal was done. Just the typical legal paper shuffling and three card monty to save Stuart's company, which has been bleeding money for 40 years. His wife's wealthy family is probably tired of pumping pounds into a black hole.
Yes, the cash burn rate. Let's hope it accelerates at a healthy pace.
I'm glad I don't work for a publicly-held company, where one's financial information is open to inspection for all.
As always, strictly my personal opinion and not necessarily those of my employer or hair stylist.
actually, MQA Ltd. is a private limited liability company.
It would appear that US and UK law differs on this point. No privately-held company is bound by US law to disclose their income, expenses, and working capital in the way that MQA apparently is.
Yes, it seems so.
"The United Kingdom is one of the leading financial and business centres of the world. It is a significant jurisdiction for international tax planning. This country is known worldwide as a jurisdiction with a standard level of taxation. However, UK legislation provides the opportunity for incorporating and operating companies with a zero rate of tax by means of the Limited Liability Partnerships (LLP).
An English LLP with foreign members, which does not carry on a business in the UK and derives no income on UK territory, is not liable to tax in the UK. According to the tax laws of the Great Britain, a LLP is not considered as a separate subject of taxation. The founders should pay taxes from the profits received by the LLP in their place of residence in proportions according to their share of interests belonging to them in the LLP.
As an example, an English LLP which has as members one Belize company and one BVI, which receives the income only outside of Great Britain, will not be assessed for tax. Taxes will be paid by the members in their country of their residence if it is stipulated by the legislation of that particular country.
The favourable tax regime of LLP companies does not remove the requirements for filing of financial statements. Every LLP is obligated to file financial statements with Companies House each year, and the relevant Partnership Tax return must be filed annually with HMRC (Her Majesty Revenue & Customs)."
The last paragraph probably is the reason the filings must be done and are of public record.
I've done a few of those slide decks with 'revenue plans'. Fortunately not to the SEC and also not to anyone who could hold me to it.
Trust me, that ain't real money, that's just a 'plan'.
I really doesn't say who is pay what to whom for the TIDAL MQA titles, few that there are.
And, as it would seem, something a whole lot better than a 16/44.1 file is likely the starting point, and as one of the selling features to the record labels is that they are not REALLY distributing their master files but an 'encoded' version that can only be played on a licensed system, I'm guessing that all of this is happening at the label side and NOT in TIDAL's house.
Again, just guessing.
I'm also guessing that MQA, whoever they are, isn't getting rich on the TIDAL deal?
Maybe the TIDAL deal is a loss leader to spread the word and get the labels into the fold?
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