Why artists should sell parts of their royalty income to investors?
When an artist needs to make a substantial investment to embark on the next phase of his career – from diving into the studio to record a new album and launching marketing activities, to supporting a prodigy or a personal investment – he only has a few options to raise funds. The good news; the ANote Music Platform is one of them.
Most artists can’t just walk into a bank and ask for a loan. Banks don’t always fully understand how songwriting works, how the whole music industry and business of royalties works. When conventional bank loans are not an option for artists when searching to make a substantial investment to embark on the next phase of their career, the reality is that many artists are constantly strapped for cash to purchase new equipment or software, finance tours, film music videos, or engage in projects that would advance their careers.
Most of the people are unaware of the importance of funding in developing an artist or a music project. Most big record labels have entire Artist and Repertoire (A&R) departments in order to find and support their young talents, as it takes huge amounts of time and financial investments. This goes from recording the song in the studio, to marketing it in radios stations and concerts venues.
On the ANote Music Platform, artists and publishers sell a portion of their rights to future royalties flows. They can sell it for good or for a limited number of years to investors. In the case of a limited period, they are entitled to receiving back the rights after the investment period expires. The sellers retain a majority part of their rights to those songs, but will now share part of the income generated with an investor, every time the songs are played on the radio or streamed online and music royalties are being earned. The creative management of the shares remains 100% in the hands of the seller, investors remain silent partners, allowing the artists to keep moving towards the artistic directions they see the most fit.
ANote Music gives access to a large pool of investors, and, since currently there is fierce interest in getting monetary exposure into the music industry, our platform provides a highly competitive source of financing. This is a robust marketplace where musicians can capitalize on their work and investors can find a somewhat exotic asset that could still bring in steady earnings and diversify their portfolio. Our aim is to sustain the market of music rights and foster its transparency and liquidity while the music business is growing again – mainly thanks to streaming. We unlock the access to this new form of investment, uncorrelated with traditional financial markets.
By monetizing their royalty-based assets, artists can get funds immediately, instead of waiting to get paid over the years. This financial liquidity will allow a continuous funding of new projects, live tours, new albums, and financial independency. Cashing out from an investment after years of positive returns can also be an option, while upfront royalty payments can open-up more ways for personal financing, investing more, purchasing a house and leisure. Selling a part of a music artwork can also indicate reduced risk for the artists, let alone being part of a platform that grants a vast exposure to a broad network of music fans and investors.
With ANote Music, artists have this incredible opportunity to receive no-strings-attached advances on future royalties. Our objective is to form a bridge between the music industry and the financial markets and foster its transparency and liquidity.
If you are a music rights owner and you are looking to explore new opportunities, feel free to reach out to us on firstname.lastname@example.org and discover what we, together, can make happen. Fresh opportunities ahead of you, what are you waiting for?