Investing in the Music Industry – does it worth?

Investment involves many opportunities to invest in many things that are not only assets. Taking a pace with the time and technologies, people often stop themself and take a break to rethink the investments they possess to turn them more profitable and worth being kept for a long-term deal. Sometimes, they come to radical decision to change the direction of investment because some new trends on the market appeared. And there is a need to get some advice about trends, whether they are worth investing in or not. Investment companies are extremely helpful in this question. JKR is one of those investing groups that is always up-to-date with new market trends, creates successful investment plans due to the objectives of the business, and provides necessary consulting services.

2021 has become a year of various opportunities and significant investment changes in the financial world. Million of viewed YouTube videos disproportionately are music videos. The best of them gain a myriad of subscribers (viewers and listeners). Overall, the music industry takes a powerful competitive position it has ever been in. For example, Warner Music went public in one of the largest US IPOs of the year in June 2020. It illustrates the great demand for the valuations of music assets.

In the context of Covid-19, the so-called roadshow transformed into virtual and could reach a great deal of investors in a short period.

Facts of Music Industry’s Growth

Talking about IPO Warner Music, its value followed Spotify listing two years ago. And it was valued through the cooperation with music artists, content owners, and streaming services owing to new technologies. The current music industry differs a lot from the early 2000s. Then the music industry faced refusing CD sales and issues on online piracy. Accordingly, many companies were obliged to cut costs to remain profitable.

Paid streaming involvement allowed to disclose a new way of monetization and returned the better state to the industry. And the tendency for growth is changing as it is gaining more popularity.

Streaming Model

The streaming model in the music industry is sought-after by customers because people are willing to consume music in this way. It delivers to the customers through their request. This flexibility has allowed other services to prosper, especially during the coronavirus pandemic. People worked remotely and used streaming music as an accompanying element for better concentration or else.

Practically, this occasion has led to the improvement of the streaming model.

With data collected on customers’ accounts, digitalization allows building playlists and personalized recommendations in order to keep them engaged and create value. These services usually follow a freemium model. It involves that customers can consume whatever they wish at a fixed period of time. It also increases the conversion rates for paid subscriptions.

Like any other industry, music will keep growing and reaching new heights in paid subscriptions too. Its expansion can touch developed markets as well as emerging makert. It is logical as the music streaming spreads to other parts of the planet along with Internet implementation.

Value of music to invest

When it comes to investment, diversification is a parameter to stick to if the investor is interested in having stable income from their investment assets. The same possess to the music industry.

Investors look for the value music of particular artists as well as consider various genres.

So, song catalogs can be a good investment due to the royalty payment they deliver. Sometimes, they are compared to bond-like investments as they provide a passive and stable income.

If the investor doesn’t want to risk much, they can stick to more timeless artists who have proven themselves over decades and store large fanbases.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Homes on spooky street names like ‘bat’ and ‘hell’ sell for far above the national average

The Halloween street names that cost a fortune to live on A new study has determined which Halloween-themed streets are the most expensive to live on.  Streets with the word ‘bat’ in the name face an increase of 188.6% from the national average house price in the UK.  Streets that include the words ‘cauldron’ or…
Read More
Estate Agent Talk

Why Mortgages Shouldn’t Only Be Accessible for 9–5 Workers

As the modern workforce evolves, mortgage lending criteria are struggling to keep up. Across the UK, thousands of people who earn outside of traditional employment, from content creators and freelancers to contractors and entrepreneurs, are finding themselves locked out of the housing market, despite having stable and often high incomes. According to James Enos, National…
Read More
Breaking News

Property Sector is in ‘Wait and See’ Mode

Commenting on how the property sector is fully in ‘wait and see’ mode ahead of the Autumn Statement, Daniel Austin, CEO and co-founder at ASK Partners, said: “With the Autumn Statement looming, the property market remains in ‘wait and see’ mode. Buyers are pausing, and developers are holding back amid uncertainty over potential tax changes…
Read More
Rightmove logo
Breaking News

Rightmove streamlines tenant move-in journey with Renter Checklist

The UK’s largest property platform Rightmove has launched a new checklist for renters, streamlining the process of moving into a new rental home. The checklist guides tenants through each part of the rental process, from finding a property to picking up the keys. The new Renter Checklist is available now in My Rightmove, where people…
Read More
Breaking News

Industry Reaction to Renters’ Rights Bill Becoming Law

The Renters’ Rights Act has officially received Royal Assent, marking one of the most significant reforms to England’s private rented sector in decades. The new law will ban Section 21 no-fault evictions, replace fixed-term tenancies with open-ended agreements, cap rent increases, and introduce tougher property standards under the updated Decent Homes Standard. It also paves…
Read More
Rightmove logo
Breaking News

Rightmove data and commentary as Renters’ Rights gets Royal Assent

The UK’s largest property platform Rightmove shares data and commentary on the rental market as the Renters’ Rights Bill finally gets Royal Assent and becomes law. Key market data The average advertised rent of homes outside of London has reached a new record of £1,385 per calendar month (pcm). Average rents outside of London are…
Read More