There’s a new Billboard chart: The Music Finance Index
Billboard has been keeping score for the music industry with its weekly charts since the 1950s. Over the years, the number of charts has expanded with the evolution of fan tastes, the music industry, and technology. The last I checked, Billboard publishes around 250 charts incorporating a multitude of genres and metrics.
They just added another: The Music Finance Index.
Every six months, Billboard will poll managers, lawyers, and indie executives on how they expect investments in music catalogues to trend. How much is the catalogue of artist “X” worth? The chart should tell us.
How? By looking to the industry instead of would-be investors. They also use this formula:
“Their opinion is that Masters move from a base (lower end of the valuation range) of 3.5x (2–5 years) to 5.7x (5–10 years) to 5.8x and higher(10+ years). Their opinion on Publishing follows a slightly steeper slope, rising from a base of 3.2x to 6.1x to 8.7x.”
Right. Get the full report here.
