What Happens to My Shares When the Contract with the Right Holders Ends

The duration of your royalty payments depends on the specific listing term (as specified in the Royalty Transfer contract)of each music catalogue. This can range from a limited period, such as 5 to 10 years, to an indefinite duration known as "life of rights."

When the  royalty transfer contract reaches its expiration date and you still hold shares in that catalogue, you will no longer receive royalty payments. This is because complete ownership of the royalties reverts back to the original right-holder. As for the catalogue, it will be removed from the platform and your shares will have no value, as royalty payments cease.

If you choose to retain your shares until the contract's conclusion, you should closely monitor the yield - which is calculated using the Internal Rate of Return (IRR) - the catalogue’s performance and the price volatility. Remember that the IRR is specific to each catalogue and it depends at any moment on the price of the catalogue and its historical royalty payments.

If royalties remain stable (non-declining) and in line with the historical royalties, then the performance of the catalogue by the end of the contract will be in line with the IRR calculated at the moment of purchase of your shares. It's very important to note that royalty payments fluctuate from one term to another, depending on the catalogue's performance during each specific period. Also be aware that variations in royalty payments will produce bigger and bigger effects on the catalogue price as the contract gets close to expiration, hence price volatility and risks of losses are extremely high for contracts about to expire.

If you still have questions about your catalogue shares, please contact us at support@anotemusic.com directly.