Exploring music catalogs - A guide to lucrative Song Shares
A music catalog is a collection of songs, often owned by several entities and composers, that generates revenue through various channels such as streaming, licensing, physical sales, broadcast and downloads. Music catalogs can range in size from a few songs to thousands, and their value is based on a variety of factors, including the popularity and longevity of the songs, their revenue streams, and the amount of rights owned.
Owning a music catalog can be a lucrative investment for several reasons. First, music catalogs have the potential to generate consistent, recurring and long-term revenue through multiple revenue streams. Music rights revenues are issued from streaming services like Spotify, Apple Music, and YouTube, as well as licensing deals allowing the record’s usage in movies (scoring), TV shows, commercials, and video games. Moreover, owning a music catalog allows investors to diversify their portfolios beyond traditional assets like stocks and real estate and get exposure to a business that benefits from a low correlation with the state of the economy. Even during a crisis, people are consuming music right?
Because rights are scarce and because of the competition in place to acquire those rights, music catalogs have the potential to increase their value over time, making them a valuable long-term investment. Finally, it is important to note that music is an asset that is gaining in value thanks to cross-disciplinary industries. Increased consumption of content on the internet and the intensification of audiovisual production are putting pressure on the need for music to dress up audio and audiovisual content. Thanks to platforms such as TikTok and YouTube, revenues from songs and performances can increase tenfold and boost commercial results, sometimes several years later (see Fleetwood Mac's Dreams or Roddy Rich's The Box), to levels of profitability never before achieved.
Owning a music catalog traditionally required a large upfront investment and access to industry connections. However, with the emergence of technology and platforms like Bolero, owning a catalog of music rights has become more accessible than ever before. Bolero allows anyone to own a piece of a music catalog by investing in Song Shares, which are fractions of music rights (master recording or publishing) encapsulated in a digital asset. Song Shares allow investors to own a portion of the rights to a music catalog and receive a share of the revenue generated by that catalog.
To invest in Song Shares, investors simply need to create an account on Bolero, browse the available songs and records on the primary and the secondary market, and purchase the desired amount of Song Shares. The platform makes it easy to invest in music catalogs of all sizes, and investors can choose to invest in a single catalog or multiple catalogs to diversify their portfolios. Bolero also offers a secondary market where investors can buy and sell Song Shares, making it easy to liquidate their investments if needed.
Web 3.0 technology has revolutionized the music investment industry by making it more accessible, transparent, and decentralized. Traditional music investment opportunities were often reserved for industry insiders and required large upfront investments. Web 3.0 technology has democratized music investment by allowing anyone to invest in music catalogs through platforms like Bolero.
Decentralised technology also offers increased transparency and security for investors. Smart contracts, which are a key feature of web 3.0 technology, allow for automated and transparent transactions between parties, reducing the risk of fraud and increasing trust between investors and music rights holders. Additionally, blockchain technology, which underpins platforms like Bolero, offers immutable records of ownership and transactions, providing a secure and decentralised way to manage catalogs of music rights.
Another considerable advantage of investing in decentralised music rights fractions lies in the fact that the collection of royalties and any income from a music catalogue is managed. On Bolero, you receive the royalties for your Song Shares in an automated and transparent way, with details of royalties by revenue source.
Owning a music catalog has traditionally been a difficult and exclusive investment opportunity. However, with the rise of technology and our platform Bolero, owning a music catalog has become easily accessible, radically transparent. This could result in positive outcomes for artists, who will benefit from more liquidity and a sustainable revenue source.
Discover the power of music investment with Bolero. Start building your music rights portfolio and tap into a world of sustainable revenues and assets’ appreciation.
Important: This is not an investment advice. Buying digital assets carries risks of capital loss, illiquidity and lack of valuation. It is up to each person to do their own due diligence before becoming an owner of a digital asset through the Bolero Music platform.