Easttree Media Aims to Disrupt Film and Television Rights Market

The team behind Hipgnosis Songs Fund is venturing into film and television with Easttree Media. Backed by BlackRock, Easttree has already raised $300 million to invest in participation rights of actors, writers, and producers, aiming to replicate the lucrative music rights model in the visual media domain.

Founded following a conversation between Chris Helm, a former finance chief at Hipgnosis, and British media executive Marc Allen, Easttree has set ambitious goals. The company aims to build a diversified portfolio that can create a steady, long-term income stream for investors.

The strategy of accumulating rights to income generated by reshowings and resales of content is unique. Easttree’s founders believe that establishing film and television income rights as a mainstream asset class can mirror the trajectory of the music rights market.

The firm has captured the attention of North America’s largest pension funds, with significant capital being allocated through BlackRock. They have reported deploying about $100 million since June in deals averaging between $20 million and $30 million.

Easttree aims to focus on “evergreen” content with a proven record, with the average age of interests acquired being around 15 years. Notably, the portfolio includes works that have collectively earned 22 Primetime Emmy Awards and two Golden Globes.

Establishing a “black box” valuation model for film and television shows is central to their business plan. Although acquiring data has proven challenging, Helm emphasized the necessity of obtaining income statements from numerous production studios to assess performance over time.

The market for film and television rights remains sparse, with a few other firms dabbling in this space. Despite the challenges posed by competing firms, Easttree maintains a clear path for growth, driven by a robust demand for media content and a substantial payout structure tied to talent and production.