By Stephen Duval, Co-Founder 23 Capital
The music industry is again at an inflection point, one that is in stark contrast to the situation we faced twenty years ago when the hugely profitable business was nearly decimated overnight by digital disruption.
In 1999, global revenue speaked at more than$39 billion. Within a year, Napster, the brainchild of college student Shawn Fanning and Sean Parker, would have over 80 million illegal subscribers, making it arguably the fastest growing company of all time. Its offering, free and instant music, was simply too alluring to prevent nearly an entire market from breaking the law.
While Napster would not survive another year, eventually collapsing under the weight of legal action, its arrival had already begun to transform the face of the music industry forever. Swedish entrepreneur Daniel Ek was so inspired by the project that he hired Sean Parker to assist him with his own project, Spotify.
Launched in 2008, the advent of Spotify would again rewrite the rules of the industry. Despite being a freemium service, Spotify has now passed 100 million paying users, resurrecting the hope that consumers would once again be willing to part with their money in exchange for music. Now the long-term outlook for the music market looks strong with streaming growing at a double-digit pace and research from the IFPI predicting that music revenues could almost double by 2030 to over $100 billion.
The amazing success of the streaming giants Spotify, Tidal and Apple can be attributed to a number of factors, but none are as important as the improved user experience they offered. Subscribers to these apps now have a streamlined access to an on-demand content library of over 30 million songsat a low, inclusive price point of entry. This growth is being augmented further by global smartphone penetration. It can be easy to forget that the iPhone began life as the iPod, with music the central offering in the devices.
Encouraged by this growth, the tech giants Amazon, Google and Apple are now battling for home court advantage. Devices like the Echo are proving to be another pathway to streaming income, with 28% of in-home connected device owners saying the device drove them to a streaming subscription purchase, according to Wall Street Research. Given the same research suggests 55% of all households in developed markets will have a smart speaker by 2022, music should continue to become more engrained in consumers, with the total number of connected devices projected to grow to 125 billion by 2030.
Worldwide connectivity is also only adding fuel to the fire. 562 million streaming enabled cars are expected to hit to the roads by 2022, meaning in-car streaming could represent an $8 billion incremental revenue opportunity not previously registered. Meanwhile, the maturation of major streaming music markets such as the U.S. and the U.K. has Spotify and its rivals chasing emerging opportunities in China, Brazil, Mexico, India, and “late adopter” nations like Germany and Japan. Developed markets generated $3 billion in streaming revenue in 2016, while only $514 million was driven by emerging markets. With the subscriber base in these emerging markets estimated to grow by 850% by 2030, total streaming industry revenue could grow from $3.5billion to around $28 billion in just over a decade, fuelled by the rise in international smartphones and the growth in connected devices in these regions. Spotify’s monthly active users grew by 51% in emerging markets in 2017 for example, far outpacing other markets.
Investors are attracted to publishing because a credible catalogue has a highly predictable cash flow, based on royalties grossed from prior years. Streaming can therefore provide a passive, consistent and recurring revenue that requires limited administrative overhead. Ownership over intellectual property generates an annuity-like income stream with minimal oversight, with 80-90% of all modern music rights not requiring any active management besides a core team of specialists and financial consultants on hand to advise and inform acquisitions.
Nor is content holder disintermediation a threat. Strong copyright laws support the continuity and sustainability of music as an asset. Distribution channels and strategies can change, but rights holders always win. Music’s inclusion in film, TV, theatre and adverts only drives growth while strategic bundles that provide untethered access to multiple distributors tend to increase usage and reduce subscription churn.
What this gives investors is a protected and non-correlated asset class in a market with record high content creation and unstoppable growth. It’s taken the music industry almost 20 years to recover from technology’s entrance to the sector, but it looks to have finally found a model that works for consumers, artists and business alike. Now, the adoption of digital technology by consumers that once risked ruining the industry, is the very thing driving its success.
This document does not constitute and should not be considered as any form of financial opinion or recommendation by 23 Capital or any of its affiliates. It is for informational purposes only and you should not construe any such information as legal, tax, investment, financial, or other advice.
How effective is it to invest in music?
If you are a musician, you would know how effective is it to invest in music? How much do you spend on music memorabilia or albums? Do you take your music gear everywhere you go?
Do you carry your music CD everywhere you go? Do you have a collection of good rarities? Do you travel a lot? The purpose of this article is to ask these questions to figure out the effectiveness of music as an investment.
The first question we should ask ourselves is whether investing in music is a good idea. Music is good for our souls and bodies. The next question is if we can make good use of music as an investment. A lot of people who are musicians, actors or singers have built empires out of their musical interests. Some have sold millions of albums.
How much time do you spend listening to music? Have you got any collections? Do you travel around a lot? To figure out your answer, just keep asking these questions.
The next question is does spending money on music encourage us to make good art or music? Inexpensive materials, like cheap CDs, can encourage us to make good stuff. If one makes a CD from scratch, he might be thinking, “Well, this is not very expensive at all!” But the creative mind that creates a perfect recording from scratch may have spent hours, days, weeks, months, even years working on it. And, it is a good idea to spend a little extra cash to support the artist.
How much time do you spend listening to music as you walk? It might seem pointless to purchase a $5 CD when you are just going to walk five minutes more each day. But, when you hear a good one and think “This is great”, you will want to walk more. The same is true for the creation of music.
The most important question is: “Is it a good idea to spend my money on music?” If you are not a fan of the major labels, buying popular music can be ineffective. The artists are trying to make a name for themselves. They are trying to get signed to the label they like to play music. And, they are not promoting music in the traditional way. So, if you are not a big fan of the big names, buying music is probably not a good idea.
It’s important to be aware of how effective it is to invest in music. It all depends on your motivation and dedication. If you don’t care about the outcome, then what’s the point? To be truly passionate about music, you need to do something. It could be buying one of their CD’s, but even that may not be enough if you have no desire to learn more about music or promote yourself and your music.
When you are motivated, you become willing to learn. It is easy to say you want to learn more about music if you love music. You may want to sign up for a class at a local school if your neighborhood has a music teacher. Or you may want to find an online class where you can learn at your own pace. But you have to go through the process.
Once you start the course, you have to make a commitment to learning. If you don’t want to attend any more classes, you can’t continue the learning. You may think of it as going back to school. You may feel overwhelmed at times, but you have to force yourself to get through the learning process. So, whether or not you go to a music teacher, to a CD or video course, or to an online class, you have to commit yourself to learning.
There are also things you can invest in that will be less effective. Things like eating healthy and exercising. These things may sound like good ideas, but they are not very effective. If you eat a lot of junk food, don’t exercise, or skip meals, then you will not see the results you were expecting. So, even if you think a certain activity sounds like a good idea, if you do not take action, you won’t get the good result you were hoping for.
Ultimately, the question of how effective is it to invest in music asks you to ask yourself several questions. The first question you should answer is, “Do I love what I am doing?” This is the most important part. You should love what you are doing in order to do it well and to get the best results. And once you have answered this question, the next one is, “Is this something I want to keep doing?”
What are the advantages of investing in music?
An investment in music has many advantages. The first of these is that you will make more money in your lifetime. Music is very popular and will always be around. Therefore, if you have a talent for something, there is a good chance that you will be able to make a living from it. It can be anything from playing an instrument, singing, dancing or creating music. The possibilities are endless.
Another advantage is that music teaches you a wide variety of skills. Musical talent is very important, but sometimes studying other subjects is just as, if not more, important. By learning music, you will learn a wide variety of skills. For example, when you listen to music, you will become better able to distinguish good sounds from bad ones. Also, you will learn how to listen to other people’s voices to determine if they are making good expressive sounds.
In addition, you will develop your creativity. You will get a better idea about rhythm and structure. Music helps you to expand your creativity. This comes in very handy when you start to write songs or perform on stage. Not only does good music make you a better artist, but it will also keep you from being bored with your work.
Finally, if you have ever thought about how to get rich quickly, then you should consider investing in music. You need to spend some time figuring out what it takes to make a real music business work. However, it is worth it because you will be able to earn a lot of money.
How do you go about getting started? First of all, you will need a computer. You can get a personal computer or you can use one of those fancy high-tech gadgets that are starting to become affordable. Regardless of the type of computer you use, you will need a high-speed Internet connection. You may also want to have a headset and a foot pedal to be able to hear yourself over the speakers.
Next, you will need a good quality set of headphones and a mic for your phone. Depending on the type of music you want to perform or make, you will need a mixing board. This is where you will put down the tracks that you have written. It is also where you will mix everything together. There are lots of good equipment stores, where you can buy these items.
Of course, you will need a good guitar, drums, bass, keyboards, and an acoustic guitar. If you do not know how to play an instrument, there are many good lessons at music schools and guitar shops. You will also have to buy for your instrument. This could be a simple musical instrument or something more expensive like a piano. You will have to invest in good musical equipment in order to be successful in your music business venture.
Finally, you will have to get signed to a record label or organization if you are planning on doing music commercially. Getting signed by a major record label is very important if you want to have a profitable business. Your name will be heard by millions of people through your music. You will need to be ready to work hard so that you can make your music industry career a success. Hopefully, this article has given you some useful information about what are the advantages of investing in music.
Hopefully, by now, you have a good idea of what are the advantages of investing in music. The first advantage of the music business is that you will be able to express yourself artistically. Being a musician is a creative art that only those with certain traits are able to perform. If you love to express yourself artistically, it is probably true that you will be able to make a lot of money doing it. This can be a very rewarding career for you.
Another advantage of investing in music is that you will have a chance to gain fame and fortune. Many musicians earn millions of dollars every year. Some of these artists were able to gain their first big break when they began to play in small music clubs. This means that you can have the same chances as them. If you really want to have an advantage in this career, then you will have to know what are the advantages of investing in music.
Finally, what are the advantages of investing in music if you don’t know how to play an instrument? Well, nowadays you can learn to play an instrument so you can learn to express yourself artistically as well as earn a lot of money. You will never know if you won the lottery or became a rock star without ever taking up an instrument. These days, even people who don’t know how to sing can sing songs and create albums and release music all over the world.
What can be limitations of investing in music?
What can be limitations of investing in music? Well, there are a number of things that can be considered limitations on the part of a songwriter or band. Limitations can involve legal ones, as well as economical ones. The limitations on music can also be based on time, efforts, resources and the creative genius on the band or album. Some bands have been known to limit the number of songs they can record in a week, while others have gone so far as to record an unlimited number of songs without any limitation on the amount of creativity put into it.
What can be limitations of investing in music? Time is probably the biggest limiting factor when it comes to investing in music. It takes a great deal of time to be able to record, mix, master, and play music. This time can be very limited, if not impossible. Some artists may be so rushed to get a new record out that they forget to record their tracks for a few days, weeks even.
Other potential limiting factors include money. While music may bring in great money, it is also a very expensive endeavor. Musicians often have to spend thousands upon thousands of dollars to be able to record and make music. As such, the amount of money needed to be able to invest in music may be very high. The financial commitment may be a difficult thing to undertake for many people.
What can be the limitations of investing in music? Efforts can be very limited when it comes to music. The time that is spent recording, mixing, and playing may not be sufficient to satisfy the needs of the band and the audience that want it played. This means that a great deal of time is spent doing things that do not contribute to the music’s success. This problem can be a difficult one to solve, but it will always exist.
Another possible limitation of investing in music is that an artist may have to contend with the difficulty of gaining commercial license to play his or her songs. This can be difficult, as many people do not want to pay royalties just to play their music. When an artist must negotiate with a company that provides music licenses, the negotiation process can become quite difficult and sometimes less than favorable, for both parties. It takes a lot of hard bargaining skills to come to an agreement, and this skill must be honed over time.
What can be limitations of investing in music? In addition to paying for the cost of recording, mixing, and playing, an artist has to allocate money to buy music royalties. This is a process that involves a lot of paperwork, and may be a complete waste of time if the artist does not have an accountant to help him out during the process.
What can be limitations of investing in music? Sometimes an artist will need to pay a large sum of money to someone else before he receives any royalties due to the use of his music in a video or movie. This is also called a “franchise fee,” and it can prove to be a curse for some artists, because it forces them to give up control over their career and sales potential. If a major studio doesn’t want to invest in a song or video, they may not be willing to invest in future projects with that artist.
What can be limitations of investing in music? These are really just possibilities, but they are certainly things to consider before making a decision about whether to invest in music. Remember, though, that when you purchase music from someone else, you don’t receive total creative license to the piece, so you may be held liable if someone wants to sue you for selling a song that infringes on someone else’s copyright. However, with proper planning, anyone can make good money from music without having to worry about any potential lawsuit. As long as the music is worth the price you pay for it, you should have no problem making a profit from music.
How are music royalties a good investment?
Music royalties can be a very good investment because of the potential to earn a significant amount of money. The potential for profit is what draws most people into the business and once you know the ins and outs of the industry you will see that it is definitely possible to make money this way. If you have a computer and an Internet connection, you can have your own music royalties business. You can choose to use traditional methods, which are still very lucrative, or you can try newer methods that offer more convenience. If you have been thinking about trying to make some money from music, but don’t have any experience in the music publishing industry, you might want to consider using the services of a mentor. There are many music entrepreneurs that have learned how to invest their own money and now make a lot of money doing it.
A lot of the time, when music publishers aren’t creating new music, they simply pass the music royalties they receive from their clients directly to the artists. The problem with this is that artists often have no idea how much they are being paid for their music, so they have no way to calculate how much they are really making. However, if you are able to figure out the numbers, you can set up an interesting comparison. Most traditional methods of how our music royalties a good investment have been proven by the entertainment industry to be inefficient, but the new music publishing methods are revolutionizing the way that music is made and sold.
First off, the new model eliminates all middle men. In the past, the labels and publishers would usually deal directly with the artist and then split the profits according to the arrangement. Today, labels and publishers must do their own accounting and any money they make is often less than they would receive through direct sales.
Another advantage of working directly with the artist is that you can get a better deal. When you work with the labels or publishers, they can cut you deals that cut into your profit margin because they will only take a percentage of your overall profits. However, when you are dealing directly with the artist, you will only have to pay a set fee per record that sells. As an independent music artist, you will be able to spend more time on promoting your albums and making music instead of taking care of the money aspects of the business.
The best thing about how our music royalties a good investment for the artist is that you will see immediate results. You will receive your checks right away. Also, if you are selling music and are in the traditional record label system, you may be waiting weeks or even months for your checks to come in. With the new model, your checks will come in right away so you can immediately go on tour and promote your music.
You won’t have to share your profits with anyone when you sell your songs for music royalties. You will only have to pay the one time set up fee. This can mean the difference between building your music career and not having a future. You will have complete creative control over your career as an artist now for the first time.
Now that you know how our music royalties a good investment, you need to learn about how you get them. You can do this easily through a royalty agreement that is already put in place between you and the publisher. This is what keeps you in business and allows you to keep making great music. Your publisher will take care of the payments and handle all of the financial details. You won’t have to worry about anything else but making sure that your songs are getting played.
How are music royalties a good investment? You can earn an incredible amount of money by selling your music for royalties. You won’t have to invest a lot of money into the business. You will be paid on a regular basis, which can mean the difference between touring or not making it. With the Internet and the rising popularity of artists that have their music available to millions of people through the Internet, this is definitely a viable way to make money now!
How can you find right investors for your music?
If you are new to the music business, then the question of how can you find right investors for your music should be a real headache. Well, don’t worry, because there are several ways to go about this, and some are more effective than others. Here are some suggestions that may help get things rolling. First of all, keep in mind that any good investor will want to be able to hear what you have to say before making a commitment.
Next, you need to know who will find you, because this is the part that most people ignore. Will you hire an agent? You could also pursue the help of various networking groups, as well as personal friends. The more people you know, the better chance you have of finding the right investment opportunities.
Now that you have an idea about how to find investors for your music, you want to know where to look. Most importantly, you want to find a group who is interested in both the music and the business. In other words, these are the “big dogs” when it comes to investing in artists. Most of them have been in the music scene long enough to have made contacts in the industry, and they know who they can turn to in case a deal falls through. For example, many major recording labels now have websites where you can browse their offerings and even sign up for membership.
Do not think that because a label represents a particular artist, they really care about the music. You don’t want to be singing on a label that does not support your musical tastes. At the same time, you do not want to sign with a label that tries to browbeat you into selling out. After all, that is not what it is all about. In fact, they may want to work with you if you are a savvy artist.
Now that you have narrowed down your options, you need to know what to expect. First, they will offer you a check. That’s it. There is no other paperwork or initial payment involved. In fact, once you have signed a contract, they never have to do anything with your music except send you checks. This frees you from a lot of paperwork, which is good for you since you are already stretched thin.
Of course, there are other sources of capital, such as private investors. However, those are not your friends. If they say they want to invest in your music but have no money to do so, be suspicious. On the other hand, if they say they have plenty of money and want to put it to good use by investing in your music, you will want to have serious discussions.
How can you find an investor willing to invest in your music? One good way is to meet people in the music scene. Find some musicians you admire and approach them about investing in your music. While this method rarely works, it is worth a try.
Another option is to go online. There are many websites that specialize in finding investors. They allow you to put up a simple, professional looking web site and let potential investors search for musicians. This is a great place to start since most investors will be able to see the actual band’s image on the site and contact the investor directly. This option is not only faster but is less expensive than traditional music investment methods.
Investors interested in your music may be interested in using an investment company. These companies buy (or represent) artists and deal with all the legal issues involved in selling recordings. The companies usually make a profit on the difference between what the artist earns in record sales and what the artist would earn with plays on various television stations, etc. It is a win-win for both sides.
Finding investors for your music can be accomplished a number of ways. How can you find right investors for your music? You can purchase a book on how to become an investor or find someone in your music industry who has already become an investor. Most successful entrepreneurs will tell you that networking is the best way to make a profit.
One of the most successful people I know who made a lot of money through music investments is T Bonehead. His music investment portfolio was so impressive, he was asked to speak at colleges and businesses around the nation. You can learn how can you find right investors for your music at anytime by following the business success of someone in your same music genre. When you learn how can you find right investors for your music, you will be one step closer to your financial freedom!
How can social media platforms help you find right investors for music?
If you’re a music lover, you will probably be looking for some ways in which social media platforms can help you find the right investors for your music. By now, most people have become aware of how these social media platforms have changed the face of online marketing. Now that they are available, entrepreneurs are able to tap into the wealth of information that these sites provide. This means that they can make better connections with those interested in the same musical genres as themselves.
In addition, entrepreneurs who have a passion for music should also take the time to explore where their interests intersect. For example, you may be very fond of rap music, but you may not know too much about music theory. On the other hand, you may find yourself more drawn to classical music. Chances are, if you do a little research into these styles and genres, you may come across many talented artists who have yet to break onto the mainstream. You’ll be able to find them by searching under their names or by listening to their music.
The next thing that you’ll want to do is take a close look at your business’ website. Do you have one? If not, you’ll want to start building one. Many times, music investors are willing to invest in a business that they know is lucrative and growing. By offering potential investors a closer look at your website, you will likely find a few new clients.
Of course, if you have already tapped into the wealth of information that these sites offer, you’ll want to keep up with what’s happening in your industry. The more that you stay in tune with the latest news and events related to music, the more likely you are to attract the attention of those who are seeking to invest in your music. You’ll want to highlight any promotional opportunities that you have as well.
One way to do this is to make sure that you’re maintaining relationships with any people who buy tickets to your shows. This is an excellent way to attract new investors to your music. By keeping a good relationship with your audience, you’ll also find it easier to attract new artists. By being proactive about your career, you’ll give yourself a leg up on your competitors.
Another thing that you’ll want to do is promote your music. You can do this through many different ways. For example, you can join social networking sites. By doing so, you’ll find that you can easily update fans on the latest events, get the scoop on new songs, and learn about the people behind the scenes. If you play music at open mic nights, you’ll find that your fans and peers are some of the best promoters that you can work with.
In order to attract new investors, you should keep your finances healthy. It is perfectly fine for you to take a financial risk. In fact, it can be good for your career. However, if you do that without putting any financial risk on your side, you may find that you don’t have any investors at all!
So, you can see that these are just a few ways in which how can social media platforms help you find the right investors for music. By doing so, you’ll be able to increase the chances that you will succeed. In the case of a new band, this can mean the difference between selling out and folding, so it’s important to keep that in mind.