How do we value the music business? When I first started in the industry, I was always confused when artist managers quoted certain performance fees or labels decided to dole out a particular advance figure. The models for valuing so many key assets and services within the industry have historically been woefully informal and speculative at best. While traditional market investing or the VC business also relies on a degree of speculation in their valuation models, there's always a rationale or hypothesis that's backing how we arrive at the final figures. Over the next few weeks I'm going to dig deeper into how some of the most trailblazing companies are looking at remodelling the music industry's standards for valuation across catalogue, live, and brand associations. To start off with, I want to shed light on one of the most transformative and disruptive companies that the music industry has seen: Hipgnosis Song Management. Built on the fundamental premise that hit songs are long-term predictable assets that remain unaffected by market downturns and will increase in value as streaming grows, they're proving the value of music IP in a way that's both tangible and strikingly sizeable. If you're an artist, manager, label, legal, distributor or anyone with an inclination towards understanding the power of catalogue, IP, and rights ownership, this one is bound to be of value to you. Hit that link below to subscribe, I'll be sharing a full breakdown very soon :) Sheet music and spreadsheets go hand in hand. https://lnkd.in/gwZMdYZB #musicindustry #finance #ip #musicbusiness #acquisitions #rights #valuation
