Investing in music royalties 

When oneself think in buy a song, is just for listen that song but… what could happen if oneself could buy a share of a song and, most important, the royalties of that song? 

A company called Royal Exchange is offering an IPO of the shares of a new company, called Royalty Flow. This new company, will acquire and manage royalty interests in media assets and intend to pay to the shareholders dividends based on the royalty income collected.

“Our first acquisition, which you can participate in, is of Mark and Jeff Bass’ producer royalties from Eminem’s entire recording catalog (1999-2013). Including the hit songs ‘Lose Yourself’, ‘Stan’, ‘The Real Slim Shady’, and many others”, says Royal Exchange in his page.


The idea, is raise money and, according to Pitchfork “Once it’s raised enough money (between $11 and $25 million), Royalty Flow intends to list on the public stock exchange where anyone can buy, sell, and trade shares in Royalty Flow, thereby investing in Eminem’s music”. (You can check it out the full article in this link: https://pitchfork.com/news/you-can-soon-own-stock-in-eminem-songs/?mbid=social_twitter

As we can see, the investment in the Eminem’s Music is indirect, cause the people gonna acquire shares of the company, and the company is obligated “to intend to pay a growing and sustainable cash dividend derived from available cash received from the royalty interests we acquire”. 

According to this company, there are great expectations for the royalties for the music streaming: “Music streaming generated approximately $3.9 billion in 2016, according to trade group IFPI. In December 2016, Goldman Sachs projected streaming revenues to grow to about $14.1 billion by 2030”. 

The shares of Royalty Flow “are priced at $15 per share, with a minimum investment amount is $2,250. (150 shares)”. We don’t have to forget that this securities are highly speculative, and could be illiquid, cause no public market currently exists for this securities

Finally, you can check it out all the conditions of this IPO in the page of Royalty Exchange in this link: https://www.royaltyexchange.com/royalty-ipo/royalty-flow-basic?utm_expid=.598PvkUIS0eXG4he5lsFCQ.1&utm_referrer=https%3A%2F%2Fpitchfork.com%2Fnews%2Fyou-can-soon-own-stock-in-eminem-songs%2F%3Fmbid%3Dsocial_twitter 

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