What are the key factors to consider when pricing your catalog for sale or acquisition?

This includes performance royalties (paid to the artist, songwriter, or publisher when music is played in public settings) and mechanical royalties (paid for the reproduction of music on CDs, digital downloads, etc.). Tracking the catalog's royalty earnings helps evaluate how often and in what contexts the music is being used. Track the catalog’s earnings over the past several years. Look for patterns or fluctuations that can help forecast future income. Consistent growth in royalties, sync placements, and performance rights revenue is a positive indicator of the catalog’s ongoing value. Compare the catalog’s performance with similar catalogs in terms of their genre, artist popularity, and age.

Analyze historical revenue data, including trends, sources (streaming, downloads, etc.), and profitability. This provides a baseline for future projections.

Delicate dance of pricing a catalog is not just about slapping on a number. You're dealing with a treasure trove of stories, memories, and emotions. Think of it like this: you're not just selling paper, you're selling a piece of someone's life. Key factors? Consider the catalog's rarity, its historical significance, the condition of its contents (think pristine photos versus faded letters), and the emotional resonance it holds. Is it a window into a bygone era? A love story whispered through faded pages? These intangible elements, often overlooked, can significantly impact its value. Ultimately, price it with respect, acknowledging the unique journey it's taken and the stories it yearns to tell.

As a former A&R exec, producer, and engineer for London Records, I’ve seen how pricing a catalog can make or break a deal. Here are the key factors to consider: ?? Revenue History – Consistent royalties from streaming, sync, and performance rights increase value. ?? Market Demand – Genres, trends, and past placements impact desirability. ?? Ownership & Control – Full rights command higher prices than partial stakes. ?? Future Earning Potential – Songs with lasting appeal (evergreen hits) fetch higher multiples. ?? Industry Multiples – Catalogs typically sell for 5-20x annual net publishing revenue—know your worth. ?? Buyer’s Strategy – Labels, private equity, and investors have different pricing models—negotiate accordingly.

Consider the type of ownership (sole vs. co-ownership) and any existing licensing agreements or restrictions that could affect the value of the catalog.

Evaluate the overall quality of the songs in the catalog (composition, production) and the diversity of genres, artists, and eras. A well-rounded catalog is generally more attractive.

Analyze the potential for future growth, considering factors like artist popularity, song licensing opportunities (film, TV), and untapped revenue streams (e.g., merchandise).

For acquisitions, assess how well the catalog aligns with the potential buyer's existing portfolio and strategic goals. A complementary catalog can create synergy and unlock additional value.

Consider the overall health of the music industry, trends in specific genres represented in your catalog, and recent catalog sales of comparable size and content.

Production and copyright costs; factor in any past production and copyright acquisition costs associated with the catalog, which can impact the asking price. Team and infrastructure; if the catalog includes a team (producers, songwriters) or specific infrastructure (recording studio), assess their value and potential impact on the sale. Legal and tax implications; understand any potential legal and tax ramifications associated with the sale of the catalog, both for you and the buyer. Negotiation strategy; develop a strong negotiation strategy with a clear understanding of your desired price point and willingness to compromise on certain factors.