Music Publishing Acquisitions Bubble Business or Sustainable Market?
The 20,000 Foot View: Music publishing mergers and acquisitions have boomed in recent years, invigorated by streaming’s user growth and the multitude of revenue options becoming available outside of music sales, such as micro syncs afford by user generated content (UGC) on YouTube and the steep growth of podcasts. The logic is sound: through the emergence of the digital economy, music publishing provided a more stable respite from the volatility of declining frontline releases. Yet as the business shifts to streaming and an engagement based model, are the assumptions on publishing’s future growth misaligned with the macro trends shaping the recorded music industry? With streaming’s emphasis on the new set to create a world of mega hits and audiences with less inclination towards looking back, the swelled valuations of publishing catalogue may begin to look ill judged. Conversely, the short-term euphoria may be used to drive its value even higher, if recorded music revenues remain strong in the coming years. This report therefore considers whether the music publishing market is in a state of inflation, or has transitioned towards an organic sustainable market with assets that were previously undervalued against music demand and/or underexploited in the piracy era.
- There were music catalogue acquisitions in 2018 to the registered in 2017
- Multiples of Publishing Share (NPS) have swelled 2010 and 2018
- Despite the only the independent sector has to increase its market share from to
- In 2010, purchased Chrysalis’s catalogue for a By 2018, an stake in Marley’s catalogue acquired by Primary was purchased at a multiple NPS
- The average spend of million in 2016- represented a six-fold increase on average of million across the six years
- A total was spent catalogue acquisitions in (although this mostly came via Sony ATV deal for the of EMI)
- Sony Corp’s stake in Sony/ATV had an price of per copyright (from catalogue of million songs)
- When Sony this acquisition two years later 2018, the average price had up to
- The global music industry revenue in 2018 billion in revenues, which represented growth
- Artists direct million, up
- Streaming contributed and to recorded music revenue
Companies and brands mentioned in this report: Apple, Believe, Blue Mountain Group, BMG, Bug Music, Carlin, Conchord Bicycle Music, Downtown Music, EMI, Hipgnosis Songs Fund, Kobalt, Parlophone, Peer Music, Primary Wave, Round Hill, Royalty Exchange, Universal Music Group, Universal Music Publishing, Warner Chappel, Warner Music Group, Sony/ATV, Songs Publishing, Spotify