Why do music rights holders sell their music catalogues?
Every year, thousands of artists, songwriters, producers and music rights holders sell a portion or the entirety of their music catalogues to players ranging from private investment funds and private investors to leading industry players.
This is usually done to obtain immediate liquidity from their list of musical creations instead of waiting for many years of payments from the royalty distributors.
While this practice isn’t new, it was for a long time mainly reserved for large private funds or music industry insiders. Today, thanks to platforms like ANote Music, these kinds of deals are made available to the public, meaning that rights holders can sell a portion of their future royalties to a broader range of investors.
Among the reasons why rights holders may opt to sell their future royalties (e.g. royalty interests) on ANote Music, there are:
- Involvement in the valuation process: unlike one-to-one negotiations where the buyer sets the price unilaterally, ANote Music puts the rights holders at the centre of the process. Valuation is defined collaboratively, combining the rights holders’ input with ANote’s data-driven model and market benchmarks to establish a fair starting point for the valuation.
- Personalisation of the royalty interest transfer: ANote offers rights holders the possibility of choosing the listed percentage of their future royalty income, the duration of the transfer, the songs included in the listing, the type of royalty interests included;
- Liquidity: after the initial listing, the catalogue remains tradable on ANote Music’s secondary market, giving the rights holders the option to sell any additional percentage at market-driven prices in the future, as well as having a clear picture of the market’s valuation for their works.
To discover more about why music rights holders sell their future royalties, visit our dedicated website page “Music creators” or contact our team at the following email address: support@anotemusic.com.
