Investors listen to music – Kommersant FM

American investors were offered to invest in the music from Shrek. According to The Wall Street Journal, the Public platform bought a stake in the rights to the compositions from the cartoon and turned it into 90 thousand shares at $10 apiece. We are talking about a catalog of 700 compositions.

Among them there are no hits by Smash Mouth or a cover of Leonard Cohen, but there is original music from the cartoon, familiar to everyone.

Any movie streamed, broadcast on television, or music played in a theme park generates revenue. Investors will be able to receive a share of the royalty once a quarter. According to Public, music from “Shrek” brings in returns above 8% per annum. And such investments are weakly tied to other financial markets.

But does that make cartoon songs a good investment? Editor-in-chief of the InterMedia agency Evgeny Safronov notes that the music industry is now growing, so such investments are promising:

“Investing in the creative industries can be extremely profitable and turn out to be much more profitable than in the traditional real sector. It is not clear what to do with investments in a new work. But in something that has been on the market for a long time and is in constant demand, investments can be very profitable precisely because they have already been tested.

All projects that have been on the market for many years are unique. In this case, it’s just a very successful franchise. There are few of them, but it is impossible to say that this is completely unique. Another question is that one option out of a thousand can shoot – approximately this proportion.

The music industry began to decline sharply 25 years ago along with the rise of music piracy, and it was quite difficult to make money from it. The system that had been built over the past century was destroyed. Now the industry is starting to pick up. You can make money on what is in demand.

Probably because of this, changes are taking place in the structure of the music industry, and new instruments are appearing, which, in my opinion, are very interesting and tempting.”

According to the Recording Industry Association of America, music industry revenues grew for the seventh year in a row. In 2022, they increased by 6% to almost $16 billion. 84% of this amount comes from streaming. However, Andrey Khokhrin, director of strategic development at the investment company Ivolga Capital, is skeptical about investing in music:

“Retail investors are a phenomenon in large markets. If we take the music from “Shrek”, we need to understand that all the income for this event may be tens of millions of dollars a year. But these values ​​are microscopic on the scale of the global market. As a rule, this is sold to a pool of investors, a certain club, and they receive their income there.

In fact, whether there will be any income here is also a big mystery. The chances of this happening are actually small. Because if the probability is high, the investment company will borrow money and invest it itself. And if you need to invite investors there, and The Wall Street Journal becomes aware of this, it means that this is a company that sells financial products.

Usually, when this happens, I prefer and suggest staying away. Such projects remain exotic and are forgotten a short time after the publication is published. There are classic ways to generate income on the stock exchange. Unlike the music from “Shrek”, their profitability track is not at 15 years, but at 150.

I understand that Russia’s stock market is very specific, but even it more or less follows the global trend. There is a classic way to participate in the market. Warren Buffett showed it to us well by creating a giant business. There are still a lot of alternatives, like walking on your hands, doing something else – all this, of course, is cool, but it doesn’t reach Buffett’s scale.

If you want to earn money, follow the plan. It’s already been written. All deviations from the pattern will lead, at best, to a dead end, and at worst, to an abyss.”

The State Duma said that by 2025 they plan to use the digital ruble in international payments. However, it is unknown which countries will connect to the system.

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Ilya Sizov