Catalogue was a real money spinner for the music industry throughout the sales era. First it underpinned the CD boom (convincing music fans to re-purchase old albums they already owned on prior formats). Then, through the emergence of the digital economy, it provided a stable respite from the volatility of declining overall revenues in the wake of            file sharing. With high margins (recording costs etc are already covered, and many re-issues are premium products) and low marketing costs (fan audiences are already established), catalogue has become the investment fund that labels use to turn artists into superstars. Yet, as the business shifts to the lower margins of streaming and a model based on engagement, the early warning signs are that catalogue will struggle to remain an influential component of labels’ revenue mix. With streaming’s emphasis on the new set to create a world of mega hits and audiences with less inclination towards looking back, catalogue is at a tipping point. Either it changes to meet the market or the market leaves it behind.

Companies and brands mentioned in this report: Amazon, Apple Music, BMG Music Rights, Downtown Music, Dubsmash, Guardians of the Galaxy, Man in the High Castle, Napster, Musical.ly, Round Hill Music, Sony Music, Spotify, Universal Music Group, Warner Music Group