Your music investment journey
Investment opportunities in music catalogues. How does it work? When do you invest? How will you earn?
Create your account for free, analyse the assets up for auction, start to buy music rights, place bids and trade rights with other investors.
What’s left to do? Sit back, listen to your favourite tracks and enjoy a passive income.
The next big asset class is music
Besides the emotional connection you may have with music, there are multiple reasons why buy music rights makes a great alternative asset class:
- Uncorrelated with traditional financial markets;
- The music industry and streaming services are exponentially growing markets;
- Attractive returns with yields fluctuating between 6% and 17%;
- Generates passive income;
- Provides alternative funding for the music industry.
OUR HOUSE RULES
We only publish well established music catalogues
Track Record
We only handle music catalogues with a minimum of 3 years of stable royalty history. Use our easy-to-understand tools to evaluate past revenue generation and assess the prospective value of listed catalogues.
Cash Flows
For any music catalogue on sale, we have legally-binding arrangements in place with Collective Management Organisations (CMOs), or royalty distributors, to ensure investors receive the royalty inflows. We also rely on CMOs to manage the collection of royalties, prior to the listing.
Passive Role
No active management activities are needed. Our due diligence process makes sure that published catalogues are well managed. We only allow for minority shares to be listed, to ensure business continuity, as well as a proper alignment of interests.
For the purposes of managing user wallets, ANote Music uses the services of a e-money institution regulated by the Financial Sector Supervisory Commission of Luxembourg (CSSF).
SONG ROYALTIES LIFE CYCLE
At what stage do you invest?
ROYALTY DISTRIBUTION
How do you collect money?
When a song is played anywhere in the world, it usually generates royalties. These money flows are collected by CMOs and other royalty distributors.
Once shares of a music catalogue are purchased through the portfolio section, ANote Music takes care of collecting the royalty flows from the relevant distributors, and transfers the funds directly into the investors’ wallet.
From this moment on, investors are free to cash out or reinvest their funds.
STEP 1
Before music right holders offer a portion of their rights up for auction, the asset goes through a full due diligence process, reviewing all historical data, contracts and future potential.
STEP 2
With clear graphs and easy-to-understand tools, all useful information is ready available for you. Analyse financial data, target prices and relevant news before making your decision.
STEP 3
Once you’ve decided on the music catalogue(s) you wish to invest in, place bids to participate in an auction. Following the ‘Dutch Auction System’, shares are assigned to bidders from the top order down, until all available shares are assigned. The price kept as a reference price at the end of the process is the price of the cheapest bid used.
STEP 4
Our secondary market allows investors to trade music catalogues they already own. The transactions happen between investors directly. The secondary market price is determined by market supply and demand.
STEP 5
Monitor your assets in the portfolio section. Check your orders and analyse the performance of your portfolio. Each time royalties from a specific catalogue are paid out, we will distribute those funds to your account accordingly.
From here, you can choose to reinvest them, hold them, or simply to cash out.
Our fees
We offer commission-free bidding and trading on the platform.
ANote Music remunerates itself by taking a small fee from the royalty payments.
The listing fee is applicable to the amount raised by music owners when they are selling their rights in an auction on the platform. This fee is agreed upon with the seller, prior to publishing the catalogue online.
ANote Music will retain a percentage of the royalties distributed to the investors, to cover for the management and administration of the music rights and payouts. You can always find additional info about this within the catalogue page.
We only withhold a 4% distribution fee for shares acquired in the primary market.
For shares traded on the secondary market, a 8% distribution fee is applied.
The distribution fee is capped at 0.5% of your invested amount (catalogue market capitalization at the moment of distribution).
NEW TO MUSIC INVESTMENTS?
We’ve prepared some lessons for you
Investment performance - Example
Music catalogues are usually valued at a multiple of past net royalty flows. Assuming no future growth or decrease in future royalty flows, theoretical rates of returns can be easily calculated, especially for those contracts with a particular maturity.
No expiration
10 years expiry
Multiple
Multiple
5
7
9
11
Theoretical Yield
20%
14%
11%
9%
Multiple
Multiple
5
7
9
11
Theoretical Yield
15%
11%
7%
4%