Music Industry and Streaming:
- The music industry is undervalued and under-monetized compared to other media assets.
- Streaming revenues make up 87% of all music revenues, with rates expected to increase in the future.
- AI and blockchain technology are transforming how consumers discover music and how artists and songwriters get paid.
- Music streaming is recession-resistant, offering a cheaper alternative to other forms of entertainment during economic downturns.
Live Music and Ticketing:
- Live music experiences provide a unique shared experience that cannot be replicated through streaming or video platforms.
- Concerts and live shows have a significant impact on the economy, boosting hotel occupancy rates and generating revenue for various industries.
- Ticket resale companies like Ticketmaster and StubHub have faced criticism for high fees, leading to antitrust lawsuits and efforts to improve policies.
International Market:
- South Korea is the second-largest music market after the US, with K-pop playing a significant role in its success.
- The fund aims to capture global music industry growth by including companies from various countries such as Taiwan, China, Japan, Germany, France, Great Britain, etc.
AI and Blockchain Technology:
- AI tools revolutionize creativity and production in the music industry by providing artists with new ways to create songs tailored to specific styles.
- Blockchain technology allows for direct payment rails between users or venues and artists or songwriters when their music is used. This improves transparency in royalty payments.
Interest Rates Impact:
- Interest rates can affect what investors are willing to pay for catalogs or rights within the music industry. Lower interest rates may lead to higher purchase prices due to easier borrowing conditions.
Super Fans:
- Super fans are willing to pay more for concert tickets and other music-related experiences, providing additional revenue streams for artists and the industry.
- Derivative uses of music offer opportunities for diversifying revenues, such as biopics, documentaries, or movie concerts.