UPDATED 08:21 EDT / JUNE 05 2020

BLOCKCHAIN

ANote Music to launch blockchain-based music royalty investment platform July 28

ANote Music, a European marketplace for investing in music royalties using blockchain distributed ledger technology, announced Thursday that it will officially launch its platform on July 28.

The platform will allow users to invest in music, own rights from content creators and earn returns through royalties from music sales.

Built using blockchain technology, ANote’s platform provides a secure and transparent record for artists, record labels, publishers and songwriters to receive immediate access to funding through the sale of music rights. At the same time, investors and music fans get the opportunity to own the music rights to their favorite artists’ catalogs and profit from royalties.

“The launch of the ANote Music investment platform this summer will allow us to bridge the gap between the music industry and capital markets,” said Marzio Schena, co-founder and chief executive of ANote Music. “Our goal is to unlock the hidden value in music for both investors and artists by creating a stock-exchange platform for music investments.”

A blockchain operates by distributing a cryptographically secured ledger between multiple participants. Every time a record is added to a blockchain, that record receives a cryptographic hash and the agreement from every participant to add it to the distributed record. As a result, any historical record can be compared between ledgers and thus any tampering can be discovered.

In the case of ANote Music, when royalty rights are sold to investors by a musician or rights holder, the record of that transaction will be secured on the blockchain using a cryptographic key. The owners of that cryptographic key can use it to prove they’re the holder of that royalty investment. During this process, residuals generated by royalties can be determined and distributed to key holders, thus creating a peer-to-peer financial ecosystem.

In order to generate interest in the ANote Music platform prior to the launch, the platform is offering users the chance to invest in a pre-order for Irma Records, a prominent Italian record label with a value estimated at around $225,000 USD (or €200,000).

During the pre-order auction period, early adopters of ANote Music will be entitled to a 5% discount on the catalog shares. Additionally, pre-order users will not have to pay distribution fees on royalties generated for two years.

“By being featured on this platform as an artist or creator, there is an opportunity to generate extra visibility and build up a profound reputation within a large network of music fans and investors,” said Massimo Benini, chief executive of Irma Records. “We look forward to building on this pre-order offer and continuing our relationship.”

Other examples of the music industry adopting blockchain technology for rights management and royalties include the startup Fenix, which empowers independent artists to control their online presence and distribution of music, and consumer music platform Spotify AB’s acquisition of Mediachain Labs, a blockchain-based media rights attestation network.

ANote Music will manage royalties and ensure that investors receive royalty flows generated by the underlying music rights.

Music catalogs on the platform will have a minimum of three-year earnings contracts, which the company expects will guarantee worthwhile, secure and reliable investments for users.

“Our mission is to make this music investment opportunity available to everyone,” Schena said. “As music listening habits have a low correlation to financial markets, music royalties generate ever-increasing revenue prospects and act as a very promising diversified alternative asset class, which is largely immune from external shocks.”

Photo: Pixabay

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