The transition over the last decade from purchases of CDs, vinyl albums and downloads to subscription and advertising supported streaming has had an enormous economic impact on the music industry.
In this report, we set out to quantify this impact, focusing on:
• The dramatic increase in NPS (net publishers share) multiples paid by purchasers of music copyrights;
• The increased interest in music royalties as an investment opportunity;
• The reduction (and even reversal) of the traditional decay curve for music releases; and
• The increased resiliency of the music industry at large on both a macro and micro level.
We also examine how streaming music services are providing this increased value to the music industry while continuing to operate at lower profit margins than other distribution channels have historically enjoyed, calling into question their ability to continue providing this value over time.
