Media brand Billboard, and financial tech (fintech) company Duetti, have joined forces to produce the Music Finance Index. The project seeks to establish benchmark values for music and identify catalog investment trends.
Music valuations are upward-trending for investors, with even newcomer catalogs establishing values nearly ten times revenue, according to Billboard (HERE).
The new index will be released semi-annually, and will be derived from polling of nearly 60 independent artists, managers, and music lawyers.
“The Index’s goal is to increase transparency in a historically opaque market and share insights and perspectives, which we hope will empower music creators to make the best financial and catalog management decisions for themselves,” Duetti CEO Lior Tibon says.
We get a sense of value from this statement in the press release: “The Index found that catalogs of music rights that are between two and five years of age can fetch a price ranging from 3.5 to 9.5 times its trailing 12-month net revenue for master recording rights and 3.2 to 9.8-times trailing 12-month net revenue for publishing rights.”
Older catalogs can achieve higher valuations, we are told, from about 5x – 12x revenue. Following that trend, publishing rights for catalogs of songs older than 10 years range from 8.7 times multiple to 19.9 times.
We also learn that Latin music is the clear #1 genre in this market, with 71% of survey respondents expecting its value to increase, against only four percent who are not enthusiastic about the category.
Read more HERE.
