![]() ![]() It’s not just rights holders and artists who have more choice in how they monetise their catalogues, music fans and everyday investors will also have more opportunity to buy into the industry. This growth will have a trickle down effect. This is evidenced by the near-constant news around rights sales – Nelly and Logic are two of the latest artists to sell a portion of their catalogues in recent weeks. ![]() Crunching the numbers, it’s not hard to see why catalogues are being bought up for astronomical sums – investors expect the good times to keep rolling. On the ANote Music platform, our investors enjoy an annualised return of 10% on average, with a profitability rate of nearly 90%. ![]() Royalties are a reliable, passive income, and largely insulated from broader economic changes. Royalties are a reliable, passive income, and largely insulated from broader economic changes.įor investors, the appeal is clear. This trend will continue, with rights holders not only diversifying their revenue streams by selling catalogues, but also exploring other ways to list their catalogues on exchanges so they monetise their assets while retaining creative control of their music.įor investors, the appeal is clear. Two prime examples that made headlines are Shakira, and Justin Bieber, who sold rights to his catalogue to Hipgnosis for $200m. The landscape is shifting further now, with the market showing an interest in younger artists. Selling off music catalogues and music rights had historically been regarded as reserved for heritage artists the likes of Fleetwood Mac, Bruce Springsteen and the late David Bowie, with transactions usually strictly reserved to happen between industry insiders. The UK market is thriving, with UK music exports recently surpassing a value of £700m for the first time.Ĭentral to this growth is the maturation of the music rights market in recent years, driven by the billions being pumped into the sector by major players including Sony, Universal, Roundhill, Blackrock and BMG. The sector looks set to flourish further, with Goldman Sachs forecasting that music revenue will surpass $130bn by 2030. Festivals and live events are back bigger and better than ever, while the inexorable growth of the music industry at large continues apace. We are in the midst of a music money boom. That disruption seems a distant memory now. It was only a matter of years ago that the pandemic was disrupting live events and creating a dark cloud of financial uncertainty above the market. All of this will be further influenced by potential regulation of streaming platforms, which could tilt the balance of power further in favour of artists. Secondly, music royalties will further cement themselves as a bona fide asset class to compete with more established investments, and we will see an explosion of interest from music fans and everyday investors as the music industry becomes more accessible than ever before. Get Music Ally Certified FOR FREE: advance your skills with Music Ally's Amazon Music for Artists Pro Series > ![]()
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