Is Music A Good Investment? Whyte vs. Resnikoff

At Monday's ABA Forum on the Entertainment and Sports Industries in Los Angeles during the panel discussion "Dumb Money vs. Smart Money", Robert K. Whyte, the managing director of investment bank Mosaic Capital, declared music "a win-win situation for both artists and investors".

Many investors have moved away from music because of the tangled web of permissions demanded by rightsholders. In an essay that seems particularly negative from a publisher who has profited from the ads of  the many startups he's championed, Digital Music News' Paul Resnikoff cites "a trail of under performing startups and lots of lost cash...make no mistake, very few are actually making money in this space."

Whyte, however, sees opportunity in the growing group of artists that have chosen to work outside of the major label system. "The recent evolution of the music industry creates a win-win situation for both artists and investors," said Whyte. "Bands and independent artists now have the tools and ability to promote themselves and their albums. They can drive and track their success, without contracts. New media makes this possible, and investment in those new endeavors reaps the benefits once found in royalties and copyrights."

What is your view of the current state of music industry investments?

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