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

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