The Wall Street Journal picks up on the investment opportunity in music royalties, with interest notably rising during the pandemic-induced volatility in public markets. The good news for investors... streaming activity remains the standout performer for the music business.
Investors see music royalties as a relatively safe, stable asset amid current market volatility. Low interest rates combined with an asset that produces yields largely untethered from the broader economy are making music an attractive investment.
What Kind of Year Will It Be for the Record Business? (Rolling Stone)
The impact on streaming should be more limited, and will vary depending on the market and remuneration method. Streaming by subscription, which generates the largest portion of UMG revenues by far, is intrinsically more stable and robust.”
The Japanese music industry has also seen a resurgence in catalogue streams, with 38.2% saying they’d seen a significant increase for this portion of their catalogues.
Time to stop playing the velocity game (MIDIA Research)
A reassessment of the entire royalty streaming structure is needed from upstream to downstream.