Investing in band songs can be a sound investment if done properly. There are many factors to consider when investing in band music including song quality, band popularity, genre demand, streaming growth, and revenue models. By carefully analyzing these areas, one can find lucrative investment opportunities with strong upside. However, the music industry is complex so conduct thorough due diligence before committing capital.
Assess song’s commercial appeal and streaming potential
The most important factor is the song itself – does it have mainstream commercial appeal and viral streaming potential? Mass market hits have the most revenue upside. Analyze the songwriting, production quality, uniqueness, and ability to gain organic listeners. Uptempo, catchy choruses tend to gain traction best on streaming platforms like Spotify. However, each genre has differences so understand musical intricacies.
Evaluate current and projected band popularity
Popular bands with large existing fanbases have built-in listeners for new music releases. Gauge the band’s current popularity through examining streaming numbers, concert ticket sales, online followers, media impressions, and charts. Also assess expected trajectory – is their popularity growing, peaking, or declining? Times of peak popularity indicate good investment entry points if the music is strong.
Research favorable music genre investment outlooks
Some music genres like hip hop, pop, and country music have greater mainstream commercial viability in today’s market than others. While investment opportunities can be found in any genre, understand which ones have the most industry momentum currently. For example, Latin music has seen strong streaming growth recently as that demographic expands in the US. This indicates a favorable investment outlook relative to other genres.
Consider streaming platform monetization differences
The core streaming platforms – Spotify, Apple Music and Amazon Music – have differing royalty payoff structures. Apple Music pays highest rates per stream at $0.01 while Spotify pays $0.003-0.005. However Spotify’s larger reach often offsets the lower rates. Consider which streaming services the band’s fans predominantly use and projected listening volumes on each.
Factor in revenue from non-streaming sources
In addition to streaming royalties, there can be licensing revenue from TV, films, video games, advertising and more. The more popular the song, the higher the licensing income as music supervisors prefer proven hits. Investigation potential sync licensing demand for the song’s genre and adjust forecasts appropriately.
In summary, band song investments requires deep analysis into the strength of the song itself, current and expected popularity of the band, music genre dynamics, streaming economics and licensing revenue upside in order to determine profit potential.