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Invest in Music Royalties with ANote

by Alan Daniel

 

Listening to fantastic music is excellent, but wouldn’t it be cool to invest in music royalties too?

That is what ANote Music, a European blockchain platform, aims to bring into the world with its music royalties investment marketplace. ANote Music came about July 2020 and has worked with brands like Irma Records.

Here’s a few reasons why ANote Music is a compelling platform in this digital era.

ANote Music and Digital Rights as Investments

Investors in the retail and institutional sectors can take advantage of this new investment category to allocate capital to music and own a share of the rights while obtaining returns from royalties.

The firm was present in 2018 and utilizes blockchain technology to enable music industry participants from artists to directly access capital markets, recieve support, exchange a portion of music rights, and stay independent throughout the process.

That might seem like it’s incremental with minimal value add, but it can bring about a whole host of opportunities if the platform works as it should.

The ANote Music Process

The ANote platform works as such:

  • The ANote platform collaborates with the artist and obtains the rights.
  • Then sets up an auction to deploy the offering.
  • The auction occurs, and it is either successful with the right portion of bids, or it isn’t.
  • If it is successful, then the bidders receive the rights and can hold onto it or sell it later on the secondary markets.
  • If investors hold it, they receive proportionate cashflows from the sales of the music.

Does ANote have Assets?

Yes, the firm does manage assets that have a value of over €300K. It seeks to add more assets in addition to these from other publishers. They continue list more music offerings from artists ranging from Konca to Lubert in Poland to other European artists.

The critical question here with music royalties is how valuable and stable are the cashflows over time.

ANote aims to conduct rigorous due diligence and only list specific rights assets that show strong value over the long-term.

Yes, It seems like an exciting concept, but I wonder how compelling it is as we’ve seen individual offerings like Bowie bonds and a few similar offerings.

But where does ANote fit into the investment landscape? Does it fit?

ANote Music and Alternative Investment Categories

The launch of an investment platform like ANote isn’t surprising in the least bit. As I’ve noted several times in the past, the investment world faces a host of issues.

For instance, take a look at your favorite tech companies ranging from Facebook to Amazon; the valuations are insane. How much higher will these technology companies go? Where is the current ceiling for these technology companies?

The COVID-19 indoor narrative boosting technology companies can only go for so long, and COVID-19 fears increase and decline regularly. These fears continue to wax and wane as people spend more time in the malls, restaurants, and other places without noticing any significant problems.

For instance, reports note that citizens in different European countries blatantly disregard COVID-19 mandates and continue on with their lives.

Finally, the COVID-19 vaccine reports show progress in companies in Russia, the United States, and elsewhere. Each of these components makes it to where people don’t envision a stay at home life.

There goes the live from home and utilize tech the whole time story.

What’s next, then?

Investors can look at other sectors like value and other places, but these other areas can largely seem to be overvalued.

That’s where ANote Music and other platforms can shine. Alternative asset classes from bitcoin to music rights will likely rise over the next decade and present new investment opportunities.

Individuals are looking at these categories to invest in non-crowded areas.

 

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