Sharing is an act of kindness that makes ourselves and others feel good. But, when it comes to music royalties, wouldn’t an artist want to keep it all to themselves? Why would fans want to take from musicians they love? Allow us to explain.

It’s no secret that some aspects of the music industry are, let’s say, a little broken. Music streaming makes up a significant portion of recorded music revenue, yet the payout to artists isn’t always great. Royalty sharing can remedy some of the current issues artists face.

Why Are Royalties Valuable?

There are numerous ways musicians and artists can make money. Ticket sales for tours, festivals, and other live performances contribute to an artist’s income. However, a chunk of this revenue will be split with others involved, like production companies, wider crew, etc.

Sales of music, whether physical formats like vinyl or digital downloads, also contribute to an artist’s living. But, with the rise of music streaming, actual sales of music are significantly fewer than they once were. Plus, record companies and larger organisations tend to take a big cut before the artist sees any remuneration for their work.

Since music streaming makes up for 65% of recorded music revenue worldwide, the royalties generated have become increasingly interesting to investors. As streaming grows, the amount of revenue being paid out increases.

That’s exactly why investment companies like Hipgnosis have taken notice and purchased the rights to famous artists’ back catalogues.

Benefits of Royalty Sharing

With music royalties potentially being the gift that keeps on giving, it’s important to understand why sharing them is a great idea. There are a few benefits, whether you’re an artist or a dedicated fan.

Artists

By sharing the royalties generated by your music, you can create a deeper connection between yourself and your fans. Giving fans a real stake in your career means they can help drive your music, whilst you build a more targeted audience.

Selling a fraction of your royalties enables you to generate instant income, rather than having to wait months for it to accrue. Having that large and immediate injection of funds opens the doors to possibilities regarding fresh creative endeavours.

You can sell off as big or little a fraction of your royalties as you please. That means you still get to enjoy those regular payouts. But, by getting involved in royalty sharing, you unlock a new way to earn recurring revenue. Fans can buy shares of your music royalties, and then sell them on again in the future. On Fractis, artists get a percentage (chosen by the artists) of the resale price.

Fans

Fans who appreciate the work of their favourite artists can help to give music back its value. By buying into royalty shares, you can support artists directly with instant revenue. Play an active part in artists’ careers and feel more closely connected to them.

Build a lucrative NFT portfolio and earn a passive income by sharing in the fruits of your top artists’ labour. Hedge your bets on artists you feel could be the next big thing, and invest in music that will provide value for you, without any extra work required.

Be a part of NFT royalty sharing, and be a part of history. This type of venture is brand-new, and set to revolutionise the way streaming royalties work. In fact, it will make sure that streaming royalties work for everyone – the fans and artists – and not just fat cats and large organisations.

Interested yet? Sign up to Fractis, and be ready to revolutionise royalty sharing when we launch!