In music, treasures lie not just in the sweet notes that touch hearts but also in the financial value they carry, especially over time.
From legends like Stevie Nicks, Bob Dylan and David Bowie to modern pop titans like Justin Bieber and Katy Perry, there's a musical gold rush happening. It's not about the creation of new hits but the revaluation of old ones.
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- Exclusive Reg A+ IPO of Royalties: Shrek Franchise Original Music. As a shareholder, you'll be eligible for income from the use of 768 original music tracks from the iconic Shrek film franchise.
The Music Industry's New Cash Cow: Catalog Sales
Think of Bieber, Fleetwood Mac, Shakira and Neil Young. These artists, with their diverse genres and generations of listeners, are making headlines — not for their latest tracks but for selling the rights to their extensive music catalogs. Perry recently created a buzz when she sold her catalog in September for $225 million.
The buyers are not your typical music moguls; they are investment firms. They're trading not in stocks and bonds, but in the sweet melodies of yesteryears.
Breaking Down The Music Rights
To understand this gold rush, you need to distinguish between the rights of the master recording and the publishing rights. The former, owned mainly by record labels, is the actual recorded music. The latter, which is often owned by publishing companies, encompasses the composition and the ideas behind the songs. It's these publishing rights that have turned into a lucrative business model.
Companies like Hipgnosis Songs Fund and Primary Wave are approaching this space with an investor's mindset. The songs generate consistent revenue, regardless of global economic conditions. For instance, the COVID-19 pandemic might have jolted the stock market, but streaming numbers skyrocketed. Music, it seems, is a balm for all seasons.
Consider Hipgnosis's deals: an estimated $200-plus million with Bieber, $140 million with the Red Hot Chilli Peppers and $150 million with Shakira. And the returns? Investments in music rights often offer higher yields than traditional financial instruments. For instance, while the S&P 500 might offer a 4% yield, music investment firms like Royalty Exchange have claimed yields as high as 12%.
Why Are Artists Cashing In?
Given the substantial value attached to their catalogs, it might be puzzling to some why artists would sell. The answer lies in the immediate financial windfall. Many artists see these sales as an opportunity to ensure financial stability, liquidate assets or eliminate the pressure to constantly tour.
The win-win nature of these deals, at least for now, benefits both the artist and the investor. The artist gains financial freedom and security, while investors tap into a source of consistent, and often high, returns.
From Global Icons To Everyday Investors
In a time when investment opportunities seem abundant yet elusive, the musical realm is opening an exciting door for everyday investors. A prime example? The beloved Shrek franchise. The films of the Shrek series have not just tugged at our heartstrings with their endearing storylines but have consistently been colossal box-office successes. The Shrek franchise is the second-highest-grossing animated series of all time, only slightly behind the Despicable Me series.
What makes this even more intriguing for investors is the chance to tap into the financial potential of this franchise's music catalog. With the memorable and cherished soundtracks of Shrek resonating with audiences globally, their longevity and appeal are undeniable. The impressive track record of the franchise, combined with the timeless nature of its music, presents a golden opportunity for investors to diversify their portfolios in a rather unique yet promising manner.
The platform Public allows individuals to delve into the space by offering fractional shares of royalties from such iconic soundtracks. For an everyday investor, this means not just owning a piece of cherished cinematic history but also potentially reaping the rewards from its continued cultural and financial significance. In an ever-evolving investment landscape, the fusion of music, film and finance symbolizes a harmonious opportunity that's both nostalgic and forward-looking.
Public Shrek Royalties LLC will purchase 25% of the interest of composer Harry Gregson-Williams to 768 tracks of score music written for Shrek film franchise—this is a cash-flowing asset
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