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Investing In The Music Industry: Is It Worth It?

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The wonders of technological innovation have enabled musicians and listeners alike to manage and interact with music in ways previously thought impossible. Wild things are happening, such as augmented reality concerts, and popular artists making appearances in video games, and who would’ve thought twenty years ago that any song imaginable could be played anytime, anywhere?

We’ll promptly go over two avenues in which you can attempt to make smart financial investments within the music industry. These include music royalties and streaming services. Let’s determine whether investing in the music industry is worth it in 2022.

Music Royalties

For the uninitiated, music royalties are essentially payments that are made to both songwriter and publishers once their song has been broadcast on the radio, streaming services, or by less traditional means, such as a Peloton playlist or television commercial. Artists are also known to jack up their streams in order to earn more in music royalties.

Additionally, the use of smart home appliances like Amazon’s Alexa and SONOS speakers deepens the engagement of consumers with music at home. Wireless headphones and other high-tech accessories have also become standard among most listeners, and the rate at which listeners consume materials at home and their place of study or work is now at record highs.


Intricacies aside, millions more listeners might join the music ecosystem as a result of increased internet usage and technological accessibility, especially in developing markets. More music is being streamed as a result of this trend, which jacks up the rates of royalties as well. This prospect is what makes more and more of today’s financiers invest in music royalties at unprecedented rates.

Music royalties are becoming a more alluring investment vehicle in the present market climate of poor yields and interest rates. More investors are now paying attention to their financial potential because of their low correlation with economic growth and strong potential as a steady income source.

Streaming Services

On the other hand, streaming services such as giants Spotify, YouTube, and Apple Music have continued to add users to their mammoth sizes, thanks in part to the new avenue of opportunities that the COVID-19 pandemic brought along. Their massive user base enables people from around the world to find new artists every single day.


As businesses study listeners’ behavior and habits more closely than ever, streaming platforms are a gold mine of data for musicians. Musicians may utilize streaming data in addition to receiving royalties to choose a tour stop, submit new songs to editors, learn more about the demographics of their audience, and even collect funding for new endeavors.

In a nutshell, the streaming business model is rather simple. Streaming services give access to libraries of millions of songs to users in exchange for deploying advertisements and charging those who don’t want to listen to said publicity. In 2021, streaming services raked in $12.4 billion in revenue, and there’s no reason to think these figures aren’t bound to grow in the near future.

Spotify (SPOT), Alphabet’s YouTube (GOOG), Apple Music (AAPL), Sirius XM (SIRI), Amazon Music Unlimited (AMZN), and iHeartMedia (IHRT) are all platforms in which you can invest and get in on the streaming revolution.

The Verdict

With the music industry burgeoning to unparalleled heights, there truly is no better time to make an adequate investment in your favorite musicians or streaming services. Before making any financial decision, as always, you’d be wise to consult with an experienced financier, and this isn’t by any means clear-cut financial advice. Nonetheless, there seems to be an opportunity waiting to be exploited.

By Erick Ycaza

Hi, my name is Erick Ycaza. I have a BA in Advertising & Graphic Design. This blog is to provide you with daily music news and share my personal style. Surprisingly, I have been blogging and writing about music since 2007.