🎼Economics of the music royalties

There are many different parties involved in music royalty splitting, let’s break it down.

• Recording Artists

• Record Labels

• Distributors Licencing companies and sync agencies

• Songwriters

• Publishers

• PROs - Collective Management Organizations

For different artists, this list varies, as per their contract rules, and with different copyrights, artists receive a different percentage of royalties, depending upon their contract with the label.

Returns on music royalties

Music Royalties can help in diversifying your investment portfolio and can give you stellar returns as well.

For comparison, the average annualized returns earned from Royalty Exchange are above 12%. Most of the returns revolve between 5% to 10%. It further increases to 10%-20% depending on the popularity of an artist.

The total revenue generated in the last 6 years is estimated to be $40 billion. This market is expected to continue growing at the rate of 9% every year until the year 2030. If you are looking to diversify your portfolio and generate passive income through an asset class, this is probably the best option available.

Hedonova Trivia :

A number of popular and proven music artists get managed by Hipgnosis, the largest music royalty firm. They have around $2.2 billion in assets that are listed on the London Stock Exchange.