Ever thought about owning Media Royalties as an asset class in your portfolio? What would that even look like? One example, is profiting off every time The Real Slim Shady is streamed in Spotify, Pandora, or Youtube. According to Royalty Flow, which recently filed for an IPO in September, you can do just that by owning their stock. Except you wouldn't just own a stake in The Real Slim Shady, you'd own a stake in his entire music catalog created between 1999 and 2013.
A quick look at some of the details surrounding this IPO reveals why it could be an exciting but risky venture.
* New uncorrelated asset class for your portfolio
* Opportunity to participate in revenue generated from the expected boom in entertainment industry driven by the onset of streaming. Goldman Sachs projections put music industry revenue at $28 bn by 2030
* Benefit from firm that claims to have expertise in selecting well managed IP Royalties
* Lack of Diversified Income (they only have an Option to own a % of royalties from Eminem's catalog dependant on the success of their IPO and haven't referenced any new assets in the pipeline)
* Litigation (such as disputes with Counterparties)
My questions to you....
**Have you looked into adding Royalties as an asset class in your portfolio? Does this seem like a novel idea to you (it did to me)? What's your outlook for Royalty Flow? **
UPDATE: Check out this post for a discussion Eminem's recent rap on Trump.