Due to the covid-19 pandemic, presentations, shows, recordings and many other projects had to be cancelled, thus forcing the financial sector to modify your investment portfolio towards a course that is little known in the country and very widespread in North American soil: investing in royalties musicals.
But what are music royalties? Well, they are nothing more than the patrimonial rights directed to composers, artists or music producers, as they become part of the gain in values for reproduction, that is, every time a work plays on a streaming system, radio or even at a party, the creators will receive a contract for each one, leaving the Central Office of Collection and Distribution (Ecad) in charge of inspection and collection of collection in the country.
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With regard to the payment of professionals, it is little by little, since it is connected to the reproduction of other sources of income due to covid-19, such as, for example, concerts and presentations. Many artists were encouraged to provide their music royalties to large investment groups for profit.
The funds are not linked to the Stock Exchange and fees, but to the number of reproductions of the music track in the period in which the investment is taking place. In cases like that of singer Anitta, hits can be played more than 200,000 times a day.
In short, investments associated with royalties have an advantageous scenario for composers, artists and producers, who receive amounts directly linked to the number of reproductions, thus arousing interest in the financial market due to the large growth in investment.
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