Catalog Acquisition
Purchasing the ownership rights to an artist's or publisher's existing music catalog as an investment asset.
Definition
Catalog acquisition involves buying the rights to existing music libraries, typically from songwriters, artists, or publishers. Investors treat catalogs as financial assets, valuing them based on historical earnings, future streaming projections, and sync licensing potential.
High-profile catalog sales have reached hundreds of millions for legendary artists, while smaller catalogs regularly trade at multiples of annual earnings.
Why It Matters
Catalog sales represent a major exit opportunity for songwriters and artists who own their publishing. Understanding valuation helps creators make informed decisions about selling or retaining rights.
The catalog acquisition boom has also changed industry dynamics, with financial investors now major players in music rights.
Examples in Practice
A songwriter sells their catalog for 15x annual earnings, providing a lump sum for retirement after decades of royalty income.
A private equity firm acquires a country music publisher's catalog, betting that sync placements will grow as the genre expands internationally.
An artist buybacks their masters for $5M after they sold for $500K two decades earlier, reflecting increased catalog valuations.