Tuesday, May 28, 2024
HomeEconomyShrek’s Tunes Enter the Retail Trading Stage: A New Frontier in Investing

Shrek’s Tunes Enter the Retail Trading Stage: A New Frontier in Investing

Who could ever forget the classic scenes from “Shrek” and the captivating music accompanying our favorite ogre adventures? Well, it’s time to tune in, literally, because soon, you’ll have a chance to be a part of this fairytale journey – not just as a fan, but as an investor.

Invest in the Shrek Soundscape

Trading platform Public is breaking the mold by offering retail investors a slice of the music royalties pie from the “Shrek” franchise. Historically, owning a piece of music royalties has been the playground of private equity firms and institutional giants. But things are about to change.

Starting Thursday, Public is opening up 88,970 shares of “Shrek” music rights at $10 a pop. And the best part? As a shareholder, you’ll be in line for potential quarterly payouts as royalties roll in. While it might not cover hits like Smash Mouth’s “All-Star,” anytime the “Shrek” movie gets streamed, or its melodies play on theme-park rides, the cash register rings.

But, like any other investment, there’s a catch. Royalty payouts are tied to the popularity and consumption of the soundtrack. So, while an asset like this has previously boasted an 8.5% dividend yield from 2022 royalties, there’s no fixed guarantee. The dividends will ebb and flow with “Shrek” content consumption.

Why Royalties? Why Now?

Keith Marshall, GM of Alternatives at Public, shed light on this novel offering, remarking, “Investors these days are hunting for diverse assets. From stocks to quirky collectibles and now royalties, they’re keen on creating a robust multi-asset portfolio that offers passive income.”

This “Shrek” opportunity seems to be just the beginning. The public has its eyes set on rolling out more music royalties. Why? A significant surge in streaming revenue has made royalties an attractive arena. To put things into perspective, US recorded music revenue jumped 6% to $15.9 billion in 2022, with streaming services accounting for a whopping 84%.

The public’s initiative, as highlighted by the Wall Street Journal, is pioneering and could pave the way for everyday investors to enter this domain. It’s not alone in this endeavor – startups like JKBX are gearing up to provide similar royalty-based investment avenues.

Beyond the Fairytale: What’s Next in Alternative Investments?

As the financial landscape evolves, alternative investments are making waves. Music royalties, while promising, face competition from high-yielding domains like the bond market. However, the consistent returns that assets like the “Shrek” rights have showcased could draw in investors seeking stability.

And it’s not just about music. Trading firm Artex recently unveiled plans to offer shares in valuable art collections on stock exchanges.

In essence, the boundaries of investment possibilities are expanding. Whether it’s the iconic tunes from “Shrek” or priceless art, retail investors now have a broader canvas to paint their financial dreams on. Stay tuned (pun intended) for the next wave of unique, promising investment avenues!