Why invest in music?

Music royalties are considered an appealing alternative asset by many, thanks to their ability to generate income and behave differently from traditional markets.

Specifically:

• They generate recurring income. Every time a song is streamed, played on the radio, or used in TV, films, or ads, it can earn royalties — which are then shared with rights holders on a regular basis.

• They don’t always follow the stock market. Music royalties have historically shown low correlation to traditional asset classes like stocks or bonds. This makes them an interesting option for those seeking diversification.

• The music industry is growing. With the rise of global streaming and content creation, overall music usage has increased steadily — supporting long-term growth in royalty revenues.

• Some songs earn for decades. Timeless tracks can continue generating royalties for many years — especially if they resurface in popular culture, movies, or social media.

While these factors have contributed to the popularity of music royalties, returns are not guaranteed. Royalty income depends on actual music usage, and performance can vary over time.

When we say music royalties are “uncorrelated,” we mean their value doesn’t usually follow the ups and downs of the stock market or other traditional investments.

That’s because royalty income is driven by how often songs are played or used — whether through streaming platforms, radio, TV, or in shops — rather than market sentiment. People tend to keep listening to music even in tougher economic times, which has historically contributed to more stable royalty flows.

‍Keep in mind: This is based on historical patterns and doesn’t guarantee future returns. Music royalties are still subject to risk and changing consumer behaviour. Severe downturns can still have an impact — for example, if consumers cut back on paid streaming subscriptions, or if advertising spend (which funds radio and some digital usage) drops.

It means that more people around the world are listening to, using, and paying for music — across streaming platforms, social media, concerts, TV, films, and more. As music consumption increases, so does the flow of royalties paid to the people who own the rights to that music.

Here are a few signs of that growth:

• Streaming dominates: Services like Spotify, Apple Music, and YouTube have made music more accessible than ever. Millions of streams happen every minute - each one generating royalties.
  
• Music in content is everywhere: Songs are used in TikToks, YouTube videos, ads, and TV shows — creating more revenue streams for rights holders.
  
• Global expansion: New markets are opening up in regions like Asia, Africa, and Latin America, where music streaming is growing rapidly.
  
• Live music has rebounded: After the pandemic, the live music sector has grown strongly, adding to performance-based royalty income.

On ANote Music, you can earn passive income by buying royalty interests in music catalogues — meaning you receive a portion of the royalties those songs generate over time.

Here’s how it works:

• Buy shares in a music catalogue during an auction or on the secondary market.
• Hold those shares in your portfolio.
• Receive payouts automatically when royalties are distributed — typically monthly, quarterly, or semi-annually, depending on the catalogue.

These royalties come from real-world music usage: streaming, radio, TV, public performances, and more. The more shares you own, the larger your share of the payout.

There’s no need to manage the catalogue — all royalty collection and distribution is handled through the platform.

We use a data-driven model that looks at each catalogue’s royalty history, market trends, and music-specific factors to estimate its value.

Every catalogue listed on ANote Music goes through a detailed review process before it becomes available on the platform. This includes:

• Historical royalty analysis – We study how much the catalogue has earned in the past, and how regularly.
• Market benchmarks – We compare it to similar catalogues recently sold or listed, using industry-standard valuation multiples.
• Music-specific indicators – We consider factors like the age of the songs, how widely they’ve been used, and how stable the earnings have been over time.

Our proprietary valuation model is built on years of quantitative research and analysis of music industry transactions. It’s continuously refined to reflect current market conditions and help provide a reference range for each listing.

Ultimately, final pricing is determined by the market - through investor bidding in auctions and buy/sell activity on the secondary market.

Please note that catalogue valuations are based on historical data: they provide comparability among catalogues but do not predict future performance.