How To Invest In The Music Business

Until recently it was virtually impossible for the average investor to know how to invest in the part of the music business that was actually making money. Record companies and music publishers were impenetrable. The only way to score in the music business was to invest in a brand new artist from your home town, obviously, it’s much better to invest in lotto tickets.

Successful record companies and publishers have been funded in the past by the big 7…..RCA, Warner Brothers, Sony, etc. Today, with so many independent Record companies and Publishers breaking through and having huge success, an investor can not just invest, but become a major player in the billion dollar recording industry.

How are the independent publishers breaking through? They buy catalogs of existing songs and hire songwriters who already have a proven history of hits. They then take those writer’s songs and use their own connections with the record companies and producers to place those songs with the artists that you hear on radio today.

A publisher makes money every time one of it’s songs is played on radio or TV, and every time one of it’s songs is purchased as part of a CD or through online services like iTunes. One hit song can generate hundreds of thousands of dollars a quarter.

There is a huge plus that an investor should understand that accompanies being invested in this unique industry. During a recession, war, or other tough times that normally hurt how investments perform, radio and TV continue to play songs and publishers continue to make royalties.

Where and how to invest are the questions investors have once they become aware of these new opportunities in the music industry.

Finding the right publishing company to invest in is crucial, as well as the team that comes with that company, i.e. does this publisher have established songwriters, an experienced staff, and the ability to get to every artist and record company with their songs? If you are looking to invest, there are a handful of very good opportunities out there.