Investing in music royalties means paying close attention to the sources of royalty earnings. The pandemic put this necessity into stark relief, as some royalty streams fell sharply (like radio and live) while others thrived (streaming). That means a royalty that earns primarily from digital streaming remains a strong asset even if radio-based royalties are falling. This week's Headlines makes this point clear.

Radio's Crushing Quarter Is About to Trickle Down to Publishers and Songwriters (Billboard)

Through the end of the year, the eight publicly traded radio companies could distribute as much as $70 to $75 million fewer royalties than the prior year, Billboard estimates. To make matters worse, other royalty sources, from bars to television, will also falter in 2020 and 2021.

BMG Revenues up Nearly 5% in First Half of 2020 (Variety)

Thanks to dynamic growth in music streaming, further facilitated by [BMG’s] broad and highly digital setup, any lost revenues due to postponed releases or disruptions of physical distribution were more than compensated for.

Report: Streaming Forward 2020 (Digital Media Association)

Paid subscriptions in the US alone are projected to reach $11.6 billion by 2026, and the recorded music market will be worth over $20 billion overall –an all-time industry peak.