The recorded music industry is finally growing at a healthy pace again after years of decline, mostly thanks to increasing streaming revenue from the more than 112 million (and growing) subscribers in 2016 – a 61% year-over-year increase from 2015. According to IFPI’s Global Music Report, 2016 saw global music revenues increase to $15.7B, a nearly 6% increase over 2015. Just last week, Warner Music Group reported its best quarter (Q2, 2017) in 14 years, with $917 million in revenue and a 59% increase in streaming cash – far more than enough to offset the continuing decline in digital download sales. These increases are starting to gather the attention of investors, and while a lot of focus continues to be placed on technology and digital media companies in the space, more companies, fund managers, and private investors are starting to look at music rights as a relatively stable diverse asset class that is not impacted by swings in the broader asset markets. These ideas are not new: music royalty investing first came to light when Los Angeles financier David Pullman packaged David Bowie’s catalog in bonds backed by the royalty streams and sold it to Prudential. Mr. Bowie raised about $55 million in the deal....

I travel a lot, for both business and pleasure. I’m always struck by how music, and the sheer presence of it, impacts the culture and ethos of a city. Cities like Nashville and London have a rich musical history dating back a century or more. Austin bills itself as the “Live Music Capital of the World.” Memphis is known as the home of the blues, and the “Detroit sound” was widely celebrated for many years. In some cases, legacy industries and a bit of luck have made certain cities into music and cultural capitals of the world -- but in many cases, it’s built into the brand of the city by a conscious decision.

As I write this, I’m in Nashville, also known as “Music City USA.” I’ve also recently been in LA, Portland, and Houston – and all four cities have airport music installations. While the music in each airport varies, with country in Nashville and classical in Houston, the attempted effect is the same. New York is currently in the midst of New York Music Month, a citywide celebration of New York’s diverse and thriving music sector, offering free concerts, free rehearsal space, and conference focused on urban development and music.

Some cities have seen the value of music and taken aggressive action to build their city’s brand around it....