Music catalogue acquisition Picking apart the $5 billion competition for icons

The 20,000 foot view:  A variety of economic factors and stock market volatility during the coronavirus pandemic helped establish music as an attractive asset class for institutional investors. With labels, publishers, institutional investors, and newly launched funds now competing for the same diminishing pool of evergreen catalogue, competition and prices are high. Investors need new strategies to stand out, opening pathways for specialisation in overlooked categories, like hip hop, and the evolution of more bespoke deal structures.

Key Insights

• Investors spent            on announced catalogue acquisition deals            2021, a            increase over 2020
• Western markets,            in particular the US, are            to have the highest streaming            revenue per user (ARPU), thus            the strongest influence on catalogue           
• Most deals            publishing rights, but masters            and            image, and likeness            are increasingly           
• Investors lean            rock music, which makes up            catalogue deals, as well as            from the 2000s            of deals)            1970s            of deals)
• Of            classic            who charted No.            albums on            Billboard            between 1970 and 1999,            one third have already sold            portion of their rights
• Despite a            of US consumers, and            of            hip hop fans, hip hop            just            of catalogue deals in           
• While a            number of investors dominate the            2021 saw a            increase in            number of deals carried out            the long tail

Methodology statement

MIDiA is neither a financial analysis company nor an investment advisor. The analysis in this report focuses on market dynamics and resulting market strategies.

Companies and brands mentioned in this report :Audioshake, AWAL, Bass Construction, BlackRock, BMG, Bob Dylan, Bruce Springsteen, Capella Grey, Columbia Records, David Bowie, Dr. Dre, Elton John, Eminem, Fortnite, Francisco Partners, Hipgnosis Songs Fund, HYBE, Influence Media, Ithaca Holdings, iZotope, JAY-Z, Juice WRLD, Juveline, Kanye West, Kilometre Music Group, KKR, Live Nation, Luther Vandross, Megan Thee Stallion, Michael Jackson, Mojo Music & Media, Native Instruments, Northleaf Capital, Olivia Rodrigo, Paramore, Primary Wave Music, Round Hill Music, RZA, Sony Music Group, Spice Girls, Spirit Music Group, Splice, Stevie Nicks, Sting, Tempo Music, The-Dream, TikTok, Timbaland, Tina Turner, TLC, Tracklib, Travis Scott, Universal Music Group, Warner Music Group, Will Smith