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Luxembourg-based startup ANote Music will launch a blockchain-based platform that allows its users to invest in music royalties.
Luxembourg-based startup ANote Music will launch a blockchain-based platform that allows its users to invest in music royalties on July 28.
In an announcement on June 4, CEO and co-founder at ANote Music Marzio Schena said that the platform aims to “bridge the gap between the music industry and capital markets.”
The platform reportedly helps artists, record labels, publishers, and songwriters become financially independent by allowing them to access funding through royalty sales. After investing, users receive a share of rights and can trade them with others on the platform at prices determined by supply and demand. Schena explained:
“Our goal is to unlock the hidden value in music for both investors and artists by creating a stock-exchange platform for music investments. We are excited to be the pioneer of alternative investments, while revolutionizing traditional systems within the music industry.”
ANote Music chief technology officer Grégoire Mathonet explained that the firm decided to use blockchain technology for the platform to ensure transparency and traceability for its users. He said:
“All these records are saved on a private Ethereum network, regularly backported to the main Ethereum network, which is the mechanism of plasma chains.”
Per the announcement, Anote Music struck a deal with Italian label Irma Records to launch 200,000 euros in shares on the platform. Mathonet told Cointelegraph:
“With Irma Records, we bring a mature and solid investable asset to the early users of ANote Music. At the same time, it provides a good benchmark of the kind of music catalogues our audience can expect to find and invest in on the ANote Music Platform, once we have officially launched.”
Irma Records was founded in Bologna, Italy, in 1988. Mathonet added that now the firm has offices in Japan and the United States. He also praised Irma Records’ track record:
“Irma Records has had consistent and protected royalty flows with a remarkably stable profile of royalty payments, with a standard deviation of just 3.8% over the past five years. It has been generating an average income of over €230,000 annually from music royalties between 2014 and 2019.”
Recently, digital music store eMusic launched its own token, which it claims will help musicians earn more through their activities.
Article produced by ADRIAN ZMUDZINSKI
