What is MusicStockExchange®?
A platform connecting a MARKETPLACE OF INVESTORS to the MUSIC INDUSTRY
- Streamlined royalty investing
- Separately managed products for high-net-worth individuals and institutional investors
- Liquidity for songwriters and rights owners
What is a music royalty?
A music royalty is the fee or income paid by the licensee or user of the underlying song. For example, radio stations and streaming pay for the right to broadcast or stream songs. Consumers must pay CDs and downloads. Movie studios and TV networks pay fees for the right to place songs in movies and shows. Consumers pay money for CDs and and digital downloads. All of these income sources are allocating in varying degrees to rights holders as royalties.
What is music IP?
Music intellectual property (IP) is the legal ownership right to a musical composition. Under federal law, musical compositions (i.e., songs) are protected by copyrights. Like a patent to an invention, a song copyright entitles its owners to the royalties paid for the usage of that song.
Who typically owns music IP?
Music IP (i.e., copyrights) are typically owned by the creators or writers of the music and by the companies such as publishers or labels that enter agreements with the writers to develop, promote, license, administer, or distribute the music to the public.
How do owners of music IP collect and receive the royalties their songs earn?
Collecting royalties can be a daunting task, laden with legal and accounting complexity. Effective collection requires having not only adequate physical and technological infrastructure, it also requires a keen understanding of the industry. Broadly speaking, music publishers typically collect mechanical and synchronization royalties for themselves and on behalf of songwriters. Performing rights organizations (PROs) such as BMI, ASCAP, and SESAC collect and distribute performance royalties on behalf of their respective publisher and songwriter members.
How does MusicStockExchange work?
MSE's groundbreaking platform gives you the ability to invest in music royalties. We own or co-own the rights in the songs offered through our platform. When you invest, we literally transfer ownership of the songs to you. Thereafter, we collect and distribute royalties on your behalf. This is done through your online account with us.
When I invest through MSE, do I receive royalties from one song or multiple songs?
MSE offers shares in individual song copyrights as well as the opportunity to invest in a catalog of songs. Due to various regulations, available offerings may differ by state. For this reason, our platform uses a geo-coder.
How do I receive royalties from my portfolio songs?
MSE collects all the royalties earned by your songs on your behalf. Through your account on our site, you can monitor your royalty allocations and request distributions.
What kind of return can I expect?
As with any investment, it is impossible to predict a return with certainty. However, when you invest in songs through MSE, you can expect regular cash distributions and, in some cases, a return of capital upon the sale of your investment.
How do music royalties compare to other investments?
Music royalties on MSE constitute novel alternative investments that are not correlated to the stock market or any other benchmark. Risk/return attributes may vary from song to song. As with most investments, there is no guaranteed return, and there is always a risk for loss.