Luxembourg-based ANote Music has launched its platform in Europe to allow people to invest in the music royalty market.
It officially opened to investors on 28 July 2020.
The platform gives users the chance to invest in music, own rights from content creators, and earn returns through the royalties that are generated over time.
Mission
Marzio Schena, chief executive and co-founder at ANote Music, said: “The launch of the ANote Music investment platform this summer will allow us to bridge the gap between the music industry and capital markets.
“Our goal is to unlock the hidden value in music for both investors and artists by creating a stock-exchange platform for music investments. We are excited to be the pioneer of alternative investments, while revolutionising traditional systems within the music industry.
“As music listening habits have a low correlation to financial markets, music royalties generate ever-increasing revenue prospects and act as a very promising diversified alternative asset class, which is largely immune from external shocks.
Our mission is to make this music investment opportunity available to everyone, we know that everybody loves music, the best YouTube mp4 downloader gets used thousands of times every day just to download good music.
Details
ANote Music, built using blockchain technology, provides a secure and transparent platform for artists, record labels, publishers, and songwriters to become financially independent, offering immediate access to funding through the sale of music rights.
Simultaneously, ANote Music offers investors and music fans the opportunity to own music rights of their favourite artists’ catalogues and profit through music royalties.
The investors can buy rights from artist catalogues through an auction system. Upon successful bidding, investors receive the shares of rights and can then trade with others on ANote Music at prices determined by supply and demand.
On behalf of investors, ANote Music manages royalties and ensures that people receive royalty (cash) flows generated by the underlying asset.
Its catalogue selection consists of artists with a minimum of three years earnings.
Future of investing
Music is not the only passion-led alternative investment opportunity in the market.
Sports investing has become a big part of the retail investment space, with platforms such as Tifosy highlighting how fans can invest into their favourite football team.
So, will music investing stay for the future?
Nick White, partner at law firm Charles Russell Speechlys, said: “The music industry has struggled for decades with piracy and ensuring a fair return for artists. Many bigger acts have been focusing more on monetising the live experience but it is a challenge for those who are less established, and the coronavirus pandemic has underlined the fragility of the live scene.
“What the returns from investment schemes like these will look like depends in large part on the artists and the quality of their output. I do think though that experimentation with innovative artist monetisation models like this is welcome, both for investors and the industry.”
