Alternative investments: Music royalties are hitting the right note

How to make money from music

Extreme market volatility brought about by Covid-19 has prompted even more investors to embrace alternative investments. Now an integral part of a broader portfolio, it is widely known that alternatives offer the promise of low correlation to traditional asset classes and have the potential to generate impressive income. Over time, this diversification can often result in better risk-adjusted returns.

Increasingly, investors are turning to music royalties for their alternative asset exposure, be it directly via music exchange platforms like ours at ANote Music, or via access vehicles such as Hipgnosis Song Fund and Round Hill Capital Music Royalty fund. Investec: Round Hill beats Hipgnosis on transparency But how do you make money from music? Rightsholders of music royalties are paid based on streams, downloads, physical album sales, live performances as well as inclusion in film and television. In a nutshell, consumption of music drives royalty payments, and strong ones at that...