Artist First

Italian Music Company Artist First offers public access to Le Vibrazioni’s live performance rights for the first time, as industry rises from global lockdown

Innovative New Listing Allows Investment in Artist’s Image Rights and Future Touring Revenues

Luxembourg, 13th July 2021 Artist First, the leading Italian record label, event manager and music distributor, is pleased to announce it is partnering with ANote Music, one of Europe’s leading marketplaces for investing in music royalties, to list what will be the first public offering of an image rights catalogue.

Through this listing, ANote’s investor community will have the opportunity to invest in a share of the image rights of Italian rock and pop band Le Vibrazioni, the artist behind the platinum-selling pop song, “Dedicato a te” (“Dedicated to you”). They will then receive a percentage of the band’s compensation for their live appearances throughout their upcoming concert tour that will take place in Italy starting in late 2021, and for all live performances taking place over the next 5 years.

Claudio Ferrante, CEO and managing partner at Artist First said, “We’re delighted to be partnering with ANote and supporting their efforts to improve how the music industry is financed. Now more than ever, everyone involved in live entertainment needs to work together as the world begins to emerge from its various states of lockdown. Through ANote’s platform, users will be offered a market first – the ability to invest directly in artists’ image rights. For some time, these have been traded on the private market, but this innovation brings it firmly to the fan’s doorsteps. Le Vibrazioni’s pipeline of events and concerts is strong, and we’re pleased to give their fans the opportunity to share in supporting their return to concert.”

Since 2018, ANote Music has, offered entrepreneurial music rights holders the chance to retain their independence through listing a portion of their music rights up for auction. Likewise, investors and music fans have been able to directly own shares of their favourite hits, and then trade and exchange these shares with other investors on ANote Music’s innovative secondary market.

Marzio F. Schena, founder and CEO of ANote Music, said: “Since day one, we have set out to redefine how the music industry is financed. Through increased transparency and public access, we at ANote Music strive to democratise rights throughout the music industry across the board. This partnership with Artist First is another milestone on that journey, as we further serve the industry by opening access to the image rights of Le Vibrazioni, an internationally renowned Italian rock and pop icon, to the masses. This exciting new offering will provide fans the opportunity to connect to their favourite live performances like never before. For the artists themselves and the rights owners it’s the perfect chance to also split the benefits of the tour directly with the fans.”

While the live events industry has had a difficult year due to COVID-19, as restrictions begin to ease, levels of activity are expected to return with 95% of fans around the world and 87% in Italy planning to return to live events when restrictions are lifted, the highest point of confidence since the start of the pandemic according to recent research[1]. During the five years of the listing, Le Vibrazioni is expected to perform in 180 public events/concerts, each of them managed and organised by ANote’s partner Artist First.

The listing has a maturity of 5 years, after which the royalty streams will return to the transferor. The portion of the catalogue listed on the platform, pro-quota generated royalties averaging €45,501.64 in the last 3 years (2018-2020). With a listing valuation of €125,000 the listing is set at an entry multiple of 2.77 over the last 3 years’ average royalties, resulting in an expected yield (yearly IRR, employing constant 3-year average royalties) of 23.59%. Find details around image rights and their associated royalties appended.

 

ENDS 

 

Notes to editor:

 

About Artist First

 

Artist First is the first Italian record, physical and digital distribution company. Founded in 2009, they offer an alternative to the Italian music distribution system, offering tailor-made services and products for Italian artists and music entrepreneurs, creating a direct connection to them and the market. Artist First currently has more than 5,000 exclusive publications on their books, either direct or acquired through the label’s distributed 132 gold records, 87 platinum records, 1 diamond record and 41 entries at number 1 in the ranking. The company is based in Milan and employs 50 collaborators, including employees, agents and visual merchandisers.

 

About ANote Music

ANote Music is the European marketplace for investing in music royalties and was founded in Luxembourg by Marzio F. Schena, Matteo Cernuschi, and Grégoire Mathonet in January 2018. ANote Music has identified the power of music as the next big investment opportunity and created a bridge between the music industry and the capital markets. ANote Music enables publishers, record labels, and artists to sell music rights, introducing them to a new system of financing, as well as offering users a new investment opportunity and the chance to own shares in promising artists. In January 2020, ANote Music closed a €500,000-plus funding round, led by the European music industry’s foremost players. ANote Music is also supported by Luxinnovation, the Luxembourg national innovation agency, providing access to government funding for the startup.

 

What are image rights?

Image rights are the expression of a personality in the public domain. The provision of image rights in law enables the definition, value, commercial exploitation and protection of image rights associated with a person. This enables a ‘personage’ (such as natural and legal persons, joint personalities, groups or fictional characters) to register, protect and exploit the use of their visual representation. Registration enables the image right to be protected, licensed and assigned.

Image rights can include everything from names, nicknames, likeness, image, photograph, signature, autograph, initials, expressions, statements, endorsements, physical details, voices and other personal characteristics.

 

What are royalties from image rights?

Image Rights have legally binding economic rights linked to it, allowing the exploitation of a ‘personage’. These economic rights lead to royalty generation derived from the image rights in question.

In this case, the image rights of the brand Le Vibrazioni refer to the music and artistic performance of the band during concerts, public performance and public appearance, which will be taking place across the 5-year deal during a Concert Tour organised by A1 Entertainment.

[1] Source: 2020 Live Nation Global Impact of COVID -19 on Live Events Benchmark Study https://ses.se/wp-content/uploads/2020/05/Supplemental-Fan-Survey-Data1.pdf

 

Artist First

Founded in 2009, Artist First is the first Italian record, physical and digital distribution company.