Transparency + Liquidity = 5 Months of Double-Digit Growth @RoyaltyExchange

Until recently, the value of music royalties was something shrouded in mystery. Aside from the bigger, headline-grabbing deals, we never knew what people were paying for music royalties because these deals took place in private.

That lack of transparency hurt both sides of the deal. Buyers didn’t know if they were paying too much, and sellers didn’t know if they were accepting too little. It was an illiquid market.

When we relaunched Royalty Exchange just over a year ago, our intent was to prove that an open and transparent marketplace for music royalties would raise their value for both buyers and sellers alike.

While that’s a revolutionary concept in the world of music, it’s standard practice in financial markets. After all, that’s what a healthy marketplace does… it brings buyers and sellers together for their mutual benefit, while addressing their unique needs.

By putting music assets into an open market, we’ve created liquidity where little existed before. And something remarkable has happened as result.

Over each of the last five months, the total value of the royalties sold in our marketplace has increased over the month prior. On average 27% more. That’s five consecutive months of double-digit increases in marketplace value.

These aren’t vanity stats. These figures demonstrate that a liquid market draws more participants and raises the value for all participants.

The artists, songwriters, publishers, and labels selling royalties on our platform are getting more value out of their assets than if they had pursued private deals. Investors who were previously shut out of the opportunity to purchase royalties are now gaining access to valuable, income-generating assets.

That’s why we’ve been able to attract high-profile assets spanning multiple genres, styles, and decades, recorded by such household names as:

  • Barry White (R&B/soul)
  • Britany Spears (pop)
  • Kacey Musgraves (country)
  • Robert Miles (electronic)
  • Korn (metal)
  • Kanye West (hiphop)

But what makes me most proud is where the money raised is going. It’s a common misconception that the artists selling a portion of their royalties on Royalty Exchange do so out of desperation or duress. But in fact most are leveraging their assets in a new and innovative way to make smart, life-altering decisions, like:

  • Building a home recording studio
  • Funding tours
  • Raising money for charities
  • Diversifying their assets

Ultimately, they’re using the opportunity the Royalty Exchange marketplace provides to create additional value outside the confines of the marketplace itself.

That’s a powerful and humbling thought. It’s also the best indication of what a healthy, robust marketplace can accomplish.

I’m grateful to all who have come to Royalty Exchange in the last year, both buyers and sellers, and look forward to working with more in the months to come.

- Matt Smith, CEO, RoyaltyExchange