I've been actively involved on the retail side of music royalty investments recently. It's an asset class that does not get a lot of attention, but one that I believe will pick up in popularity soon as more and more investors look for yields outside of traditional stock / bond / real estate investments.
There are many different ways to make investments in music royalties - funds, stocks of individual companies in the industry, as well as direct retail investments into catalogs.
I'm currently focused on the retail side of catalog investments. I've been digging in to see what options exists for retail investors. So far there are only a few companies that have surfaced as having options for retail investors:
Royalty Exchange: Bid on rights to royalty streams of specific catalogs. Generally takes several thousand dollars to get started. More catalogs available than any other competitor.
ANote Music: Purchase shares of royalty streams for specific catalogs. Requires minimal amount to get started. Mostly catalogs from Poland and Italy.
SongVest: Bid on rights to royalty streams of specific catalogs. Generally takes several thousand dollars to get started. Very few catalogs available.
note: if you know of others, please let me know! Either in the comments below or email me at email@example.com
When plotting out the offerings of these companies by number of investment options (catalogs) by typical minimum investment amount, it looks something like this:
This works well for me as I'm in a position to make decent sized investments into music royalties & am confident doing so. But for the average investor, or an investor that just wants to test the waters a bit, there's not a lot of options available on the market. To me there is a tremendous market opportunity for someone to come in and take advantage of.
I fully expect that over the next year or so there will be more investment opportunities that hit the marketplace - either current companies expanding there offerings, or new companies coming into existence. I also feel confident that these new offerings will provide more options for retail investors to make smaller investments into music royalties, and will have more catalogs available for investing. Time will tell.
Rest assured that when this does happen, you'll hear about it here quickly.
BTW if you want to dig deeper into investing in music royalties, join the discussion on our reddit page: https://www.reddit.com/r/MusicRoyaltyInvest/
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