Buy Future Music Royalties to Create Passive Income
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Buy Future Music and Movie Royalties to Create Passive Income

Updated: Sep 11, 2023

Living comfortably doesn't always have to be the goal of creating passive income. Sometimes, it's simply about covering a utility bill. Perhaps it's about not wasting time agonizing over bills. Or wasting your time considering the merits of paying an extra dollar for a more quality product. This post will talk about a passive income opportunity few people know about. Buying future royalties of popular music, movies and TV shows!



Royalty Exchange


Like the best of all passive income, owning the rights to future royalties lets you make money while you sleep. Buying royalties from one of the top marketplaces, The Royalty Exchange enables you to be the first in line to receive cash flows from some of the greatest pieces of art of all time. At the time of this writing, royalties for the films "Trading Places" and "Dirty Dancing" just completed their auctions. How cool is that?


The Royalty Exchange matches investors to royalty owners who are looking to sell all or part of their royalties for quick cash. It’s perhaps the best marketplace if you’re thinking about snatching up royalties whether it’s music, film, technology rights, gas and more. The Royalty Exchange has been helping license holders and investors collaborate since 2011. They have completed over 600 auctions, raising over $65m!


The ability to buy royalty streams was previously only available to industry insiders and private equity. Benefits of this investment include owning an asset class uncorrelated with the stock or real estate market. These royalties have a track record of providing consistent income regardless of the current economic climate. For instance, in the case of royalties to a song, the new owner would receive the royalty checks whenever that song is played. It didn’t matter if there was a economic recession or not.


Royalty Exchange assists investors with a valuation methodology, determining position size through intricate performance metrics. Most importantly, Royalty Exchange vets and verifies all potential listings before they are put up on their site. Lastly, after the sale is completed, Royalty Exchange assists investors in streamlining income collection and distribution.


One of the Greatest Investments


Royalty Exchange isn't the only player in this space. Lyric Financial and SongVest are also competitors. Lyric Financial gives artists short-term advances (up to two years) on their royalties in exchange for a fee. SongVest describes themselves as the stock market of music. Through their marketplace, you can buy or sell royalties. Fans can finance albums of their favorite artists through a crowdfunding model, and in return get a share of the future royalties. The money raised through these models allows the artists to create and market their content.


Royalties will always be one of the greatest investments. Other industries, such as oil and gas have opportunities of their own through oil and gas royalty trusts. In fact, many startups and enterprises are funded this way- through royalty deals where the investor gets a percentage of the young company's future revenues.



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