If you’ve ever loved a band so much you wished you could buy stock in them, we’ve got good news: A new company will soon allow you to invest in musicians’ royalties, with the chance to make a profit for yourself. First up to hit the stock exchange: the music of Eminem.
Confused? Allow us to explain.
In an industry first, shares of Eminem’s hit catalog will be going public. But if you think that the “Lose Yourself” rapper is behind the move, think again.
Turns out that a good chunk of Eminem’s music is actually owned by two producers, Mark and Jeff Bass, and their manager Joel Martin. These three sold 25 percent of their stake in Eminem’s catalog to a company called Royalty Flow that will list the shares (at a minimum $2,250 buy-in for 150 shares) on the stock exchange. Hey, that’s show business for you.
The idea is that investors will then share in income from royalties through dividends paid by the company. Considering that the music business has been struggling lately, this new approach is pretty groundbreaking stuff. But that doesn’t necessarily mean that it’s a good investment. According to the company itself, “investing in shares of Royalty Flow will involve significant risks.” (So, um, maybe give this one a pass?)
The company has also said that it intends to acquire and hold royalties from the music catalogs of other major artists as well. So who knows, maybe you’ll soon have the chance to invest in Beyoncé’s songs? Now that would be fierce.