Investing in music royalties and media

We buy legendary music albums and media assets like stock videos to earn royalties.

18.4 %

Historical returns

4 %

Maximum allocation

Picture of music equipment

Why invest in music royalties?

Picture of a man singing on stage
Chart of monthly active users over time for streaming services

Increasing strength of music streaming

Streaming revenue is predictable

Chart showing daily streams of a popular artist over time
Chart showing music revenue from various sources over time

Streaming is bringing revenue back to music

Music streaming industry market share

Pie chart showing streaming industry market share
Bar chart showing how much streaming services pay to artists

How much do streaming services payout to artists

Featured portfolio holdings

Picture of a cameraman filming a band

Media investment advantages

Predictable cash flows

Streaming platforms use extensive analytics to accurately forecast viewership and cash flow.

Low correlation to general economy

Music spending has traditionally shown little connection to broader economic trends.

Higher returns through amortization

Amortization gradually reduces or spreads out the cost of an investment or expense over a certain period of time. Section 197 of the Internal Revenue Code primarily governs the amortization of intangibles like intellectual property. Investors can amortize music investments to lower taxes and increase overall returns.

Universality of music

Music knows no borders. With popular music apps operating globally, songs are readily available to audiences worldwide. This not only expands the market size but also mitigates cultural and behavioral risks.

Revenue sources

93%

Online streaming

Generate income through shared ad revenue and payments from popular online streaming platforms such as Spotify, Apple Music, and YouTube.

1%

Cover songs

Other musicians perform cover songs, which are renditions of popular artists' music, for online and public audiences.

4%

Corporate purchases

For training videos, presentations or performances in retreats and annual meetings.

2%

Advertisements

Used as background music on television, radio and online advertisements.

Featured portfolio holdings

Stock videos

Stock videos

23.4% IRR

Film production houses often purchase generic video clips depicting scenes like helicopters flying, bomb blasts, and cityscapes. This option is more cost-effective than organizing actual shoots.

90s Hip Hop collection

90s Hip Hop collection

24.3% IRR

A collection of iconic 90s hip-hop songs that remain among the most streamed tracks in today's music scene. These timeless tracks continue to resonate with listeners across generations.

Whistle by Flo Rida

Whistle by Flo Rida

16.2% IRR

The multi-platinum album remains a favorite in clubs and on social media platforms. This upbeat and catchy record continues to captivate listeners, making it a must-have for any party playlist.

Collections of beats

Collections of beats

22.8% IRR

Artists and music composers often purchase or lease beats for their songs instead of composing from scratch. This approach streamlines the creative process, providing greater flexibility in crafting their musical vision.

Invest in a diverse portfolio of alternative assets

Consumer behaviour

Music assets may change along with evolving trends and consumer preferences, yet they benefit from artist or genre loyalty. While cultural trends can change abruptly, consumer spending on music remains separate from their overall expenditures.

Chart showing consumer spending change over the years

Risk management

Change of preference

Music trends change quickly, sometimes faster than artists can keep up. Old music often becomes popular again after a few years, as tastes in music are cyclical.

Cancel culture

Artists accused of misconduct, such as drug abuse or sexual harassment, may face consequences like being excluded from professional circles, losing sponsorships, and damaging business relationships.

Technology change

Napster disrupted music in the 2000s, causing a 15-year downturn in the recorded music industry. But with the rise of smartphones and streaming, the industry has bounced back, seeing growth once again. Technological changes can significantly affect music royalties, either positively or negatively.

Inflation risk

Music royalties typically don't react immediately to price inflation. Rates are often regulated and set for multi-year periods.

FAQ

Explore other alternative investments

Invest in a diverse portfolio of alternative assets

Hedonova is the best alternative investment firm that invests in alternative assets like art, startups, equities, wine, and more. Hedonova is the best alternative investment firm that invests in alternative assets like art, startups, equities, wine, and more. Hedonova is the best alternative investment firm that invests in alternative assets like art, startups, equities, wine, and more. Hedonova is the best alternative investment firm that invests in alternative assets like art, startups, equities, wine, and more.