Peculiarities of Investing in the Music Industry

The music industry is the industry with a very high growth rate. Many investors now start seeing high potential financial outcomes in case they invest in that industry. This paper investigates peculiarities of investing in the music industry. Of particular interest is the financial outputs and returns for investors. Different tendencies and current problems of the music industry will be overviewed globally. The US market will be overviewed more precisely since it is the biggest music market in the world. Different types of investing in the music industry will be considered. Two most common types will be researched in details: investing in a music artist and in stocks of music companies. For the first type of investments NPV calculation will be fulfilled with additional sensitivity and scenario analysis. For the second type of investing regression analysis is used by creating ARIMA model to make a forecast as well as to make a comparison between stocks of music companies and basic index. Anticipated results will demonstrate a range of returns which investors can receive if they invest in the music industry.