Musicians are selling their royalty rights to investors in alternative assets. Purchase of the rights is a gamble on the track's popularity, with big potential rewards. The return on investment is determined by the song's popularity, with hits selling in greater volume and recouping costs in a shorter period of time. In an interview last year, Mr. Buffett said he was not worried about his music being used for other purposes. The growing demand for streaming services such as Spotify is rejuvenating the earnings potential of older tracks, while a song's use in an advertisement or film can also bolster its sales.
Musicians are selling their royalty rights to investors in alternative assets. Purchase of the rights is a gamble on the track's popularity, with big potential rewards. The return on investment is determined by the song's popularity, with hits selling in greater volume and recouping costs in a shorter period of time. The Royalty Exchange enables composers to cash in their future earnings early. The growing demand for streaming services such as Spotify is rejuvenating the earnings potential of older tracks, while a song's use in an advertisement or film can also bolster its sales.