How to Invest in Music Royalties
August 13, 2025
“Unusual investing.”
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Unusual investments fall outside the traditional stock, bond, and real estate model, attracting those who want diversification, a passion-driven asset, or a shot at high-risk/high-reward opportunities. One intriguing niche is intellectual property—specifically, music royalties. Buying royalties means securing the rights to a share of income whenever a song, album, or catalog earns money from streaming, downloads, radio play, or placements in film, TV, or advertising. It’s a growing market with multiple entry points, each carrying its own mix of risk, complexity, and potential payoff.
You can go the direct route by negotiating with artists, labels, or songwriters who are willing to trade a portion of future royalties for a lump-sum payment today. This approach typically requires industry contacts or a broker specializing in music IP. There are also online marketplaces—like Royalty Exchange, SongVest, and ANote Music—that open the door for non-industry investors. These platforms offer verified earnings histories and transparent bidding but can be competitive, with auction prices climbing fast if a hot track is on the table.
For those who prefer a hands-off approach, publicly traded royalty funds like Hipgnosis Songs Fund or Round Hill Music Royalty Fund provide exposure without direct ownership. Investors can also team up with music publishers or join private equity-style funds that acquire large catalogs. The former lets you tap into publishing expertise and media placements, while the latter offers access to professionally managed portfolios—though often with steep minimums and long lock-up periods.
Like any investment, music royalties come with risks. A hit song today can fade tomorrow, ownership documentation must be airtight, and collection cycles can delay payouts for months. Trends can turn on a dime—one viral TikTok can revive an old track, while another can push it out of the spotlight. For the right investor, though, music royalties offer a fascinating blend of culture, commerce, and cash flow that’s anything but ordinary.
Please keep in mind this information should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial professional. The value of investments can fluctuate, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before making investment decisions.
