Even with the climbing stock market, investors continue to look elsewhere for investments, and more and more are looking for Alternative Investments. Numerous marketplaces have been created to find alternative assets and some of those marketplaces are now offering different types of entertainment investment options.
Slated and Legion M have recently moved to provide investment in new movie productions and for music investors can now purchase entertainment royalty streams at SongVest.com. These are just a few of the growing options for investors looking to put their money in alternative markets.
Investing in entertainment (particularly music) has been around for a long time. I am sure we all remember when Michael Jackson bought the Beatles catalog. The main question is: what did he buy and how can investors participate in similar types of investments?
By utilizing a fund like the Music Royalty Fund, you can now purchase music income (royalty) streams. But before you invest in these type of assets, it would be good to have an understanding of music royalties and royalty rights.
Music royalities are paid out to the record company, artist and songwriters on a quarterly basis. Whenever a song is played, a music rights management company, like BMI or ASCAP, who maintain records of who owns a song goes out and collects royalties on their behalf. These are huge companies that have been around for decades and that efficiently make sure that artists and record companies (or our fund) are compensated for their songs. Each quarter these companies collect money and send a check to the owners (the management companies are a non-profit and take only a tiny percentage to support their infrastructure). This makes investing in music royalties a great investment because the owners know they are getting a fair payment each quarter. Therefore, this systematic payment is similar to a bond that pays out quarterly.
One of the most interesting aspects about music, from an investor standpoint, is its' longevity. Songs collect royalties for the life of the last author plus 70 years. This is a very long tail! Music royalties also display a very stable income throughout this period.
Summary: Songwriters Share can be a great investment for someone who is just looking for a solid return in the alternative asset space. There is nothing you have to do except collect your royalties and enjoy the thought of being your own music mogul.
Our Investment strategy will seek out the best mix of longevity, steady royalties, and an attractive purchase price on the assets we take on.