investing in music
Music is a significant and growing asset class, generating a blend of varied income opportunities that we believe are attractive on a risk-adjusted basis.
Goldman Sachs research put the size of the global music market at $105 billion in 2024, with expectations that it could almost double in size to nearly $200 billion in 2035.
There are a number of factors driving interest in this asset class, which had previously been challenging to access:
1
Stable, predictable, growing revenues with strong protection
Vintage music has provided decades of predictable income that grows in line with the industry and is protected for decades more by U.S. and foreign copyright law.
2
A strategically defensive, uncorrelated investment class
Music’s cultural and emotional importance, coupled with its affordability, means that royalties can offer uncorrelated, predictable cash flows, even in unpredictable times.
3
Further growth through new tech and consumption models
There are 752 million paid music streaming subscribers globally, with platforms like TikTok and Meta helping to fuel the next wave of growth. (IFPI. Global Music Report. March 19, 2025).
4
Steady realassets income + the alpha potential of niche private markets
Music investments target a blended total return of 10–15%, combining stable, low-volatility income with strong potential for capital appreciation on a risk-adjusted basis.
Understanding music royalties
Rights holders in music earn income through a variety of different ways.
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Publishing rights cover the underlying composition—the lyrics and melody—and are generally owned by the songwriter or their publisher.
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Master rights apply to a specific recorded version of the song and are typically held by the recording artist or record label.
Both rights can be acquired by third parties—including investors like Round Hill—and each can generate royalty income when the music is used or otherwise commercially exploited.
What types of rights are there?
There are two primary categories of music rights: publishing rights and master rights.
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Publishing rights generate royalties whenever the underlying composition is performed or reproduced. This includes radio airplay, digital streaming, live performances and use in broadcast and commercial media such as television, film, or advertising (a category known as synchronization).
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Master rights cover a specific recording of the composition, which may be the original artist recording or a cover, by another artist. When that specific recording is sold in physical or digital format, streamed or licensed for use in visual media, royalties are triggered.
How do rights holders generate revenue?
Each of these rights triggers royalties in separate ways, depending on how the music is used.
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These royalties are triggered when a song is copied or distributed in physical or digital form—such as via streaming services, online purchases, or physical formats like CDs and vinyl. For instance, whenever a Round Hill-owned track is streamed on Spotify, downloaded from iTunes, or sold in a music shop, it generates a mechanical royalty.
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Performance royalties are generated when music is streamed and when it is played in public settings—such as on radio or television, at live concerts, or in commercial venues like gyms, restaurants, and retail stores (with some regional exceptions). These royalties are typically administered and distributed by Collective Management Organizations (CMOs), which monitor usage and ensure rights holders are compensated.
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Synchronization royalties are earned when music is licensed for use in visual media, including films, television shows, advertisements and video games. Round Hill’s team actively secures these placements, driving both income and visibility for the catalog.
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Further royalties are generated when music is used in ringtones, theatrical productions, merchandise such as toys and novelty items, or published as sheet music. These alternative formats provide further avenues for rights holders to monetize their works.
What are the different types of music royalties?
What protections are in place for rights holders?
A robust legal framework supports all music royalty revenue. International copyright laws and treaties safeguard the rights of creators and owners, giving them exclusive control over how their music is used and ensuring they receive any royalties that result. In the U.S., copyright typically lasts for the lifetime of the creator plus 70 years.
We have leveraged our deep expertise in music rights and royalties to develop an investment strategy that has yielded a portfolio of 200,000+ classic tracks and has a track record of reliable income generation.