All music catalogues on ANote Music are introduced through an auction in the Primary Market, in collaboration with the original rights holders, such as artists, publishers, or record labels. The auctions follow the Dutch Auction Model:
How auctions work
When a music catalogue is added to the platform, its shares are made available via an auction. Here's what happens:
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The transferor (e.g., rights-holder, record label, or publisher) sets a minimum price per share and a target number of shares to be sold.
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Investors can place bids during the auction period, which typically lasts several days or weeks.
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Bids can be placed using:
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Budget View – Enter the total amount you want to invest.
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Price View – Enter the number of shares and price per share you’re willing to pay.
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Note: You can adjust or cancel your bid during the auction period.
At the close of the auction period:
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All bids are collected and ordered by price (from highest to lowest).
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The Dutch Auction Model determines a final clearing price:
- This is the lowest price at which all available shares can be successfully allocated.
- The final price must meet or exceed the minimum price set by the transferor. -
Shares are allocated to the highest bids first, based on the price and chronological order in which bids were placed.
- The Dutch Auction format ensures a fair and transparent allocation: at the end of the auction period, all successful bidders pay the same final price, determined by the lowest successful bid that allows the full auction to be completed.
Example:
If you bid €5.00 for 100 shares, but the final auction price is €4.50, you only pay €4.50 per share, a total of €450 for 100 shares.
- At the end of the auction, the catalogue shares are transferred to your Portfolio.
- These shares entitle you to receive a portion of future royalty payments, and they come with a lower distribution fee compared to shares later traded on the Secondary Market.
For more information about bidding, contact support@anotemusic.com or visit our dedicated article: How to place a bid on an auction.