Finance
To the extent that some aspects of copyright regulation involve political power, the influence of private equity could counter that of the big technology companies that generally lobby to undermine copyright. Two executives even suggested that private equity could serve as an engine of reform to make collective management organizations more... See more
Robert Levine • What Does Private Equity Mean for the Music Business Long-Term?
PE firms political power as a driver for counteracting big tech’s undermining of copyright and to motivate CMO reform
subscription growth for streaming services like Spotify and Apple Music seems likely to slow, as the finite number of possible customers hits its limit. With less growth, values for music rights are expected to level off.
Marc Hogan • Same Old Song: Private Equity Is Destroying Our Music Ecosystem
“secondary sales will just expand the field for what is in play,” a publishing executive pointed out. A market for publishing assets inevitably means that not everyone will succeed — but it should also provide other buyers. A certain amount of consolidation may be inevitable, but it might not be so bad.
Robert Levine • What Does Private Equity Mean for the Music Business Long-Term?
On what happens when the catalogue a PE purchased runs its course for them
Take Whitney Houston’s 1987 smash “I Wanna Dance With Somebody (Who Loves Me),” which was bought in late 2022 as part of a $50 million to $100 million deal by Primary Wave, a music publishing company backed by two private equity firms. The song was recently rebooted into our collective hippocampus via a movie about the singer, titled, naturally, “I... See more
Marc Hogan • Same Old Song: Private Equity Is Destroying Our Music Ecosystem
Example
In a secondary buyout, a private equity firm buys a company from another private equity group rather than a listed company. Such deals were assumed to constitute a distress sale but have become more common amid increased specialization by private equity firms.1314 For instance, one firm might buy a company to cut costs before selling it to another... See more
James Chen • Private Equity Explained With Examples and Ways To Invest
Further Questions:
Curious about how we come to certain conclusions about the stability of music copyright cashflow in comparison to mortgages.
AI threats to copyright system - what does this mean for investors? Is this another instance in which their collective power along with publishers, labels, CMOs and other music industry stakeholders can be used to combat threats posed by big tech?
One lawyer said that this market is encouraging creators and publishers to improve their contracts and document-retention practices.
Robert Levine • What Does Private Equity Mean for the Music Business Long-Term?
Another advantage of PE acquisition
As interest rates have risen, the surge has faded. In February, word surfaced that the private equity behemoth KKR was beating a quiet retreat from the music space. More recently, Hipgnosis Songs Fund, the owner of “Super Freak,” cut the value of its music portfolio by more than a quarter in the wake of a shareholder revolt.
Marc Hogan • Same Old Song: Private Equity Is Destroying Our Music Ecosystem
it’s hard to argue that already wealthy artists should receive 1990s-level compensation for the type of flagrantly recycled fare that the private equity cohort demands.