How does music streaming affect the valuations of catalogues?


We know how streaming has had an impact on the value of the recorded music industry, but what about on the value of music catalogues?

It’s taken as read that predictable streaming revenues are a big part of the fuel behind song catalogue valuations, but now NYU music business professor and Musonomics founder Larry Miller has been trying to quantify that impact.

His new report, ‘How Streaming has Impacted the Value of Music‘, was published yesterday. One of its conclusions: “Streaming contributed 61.5% to the value of music transactions in 2021. We reached this conclusion by calculating its impact on the rise in NPS multiples paid for music catalogs in recent transactions.”

(NPS meaning net publishers share in this case.)

“61.5% of the value of the NPS Multiple is attributable to publishing revenues that come from music streaming, while 38.5% is attributable to publishing revenues from other sources and the effect of the macroeconomic context.”

You can read more on his workings in the report, which is free to download with registration.

Written by: Stuart Dredge