Catalog Valuation and Selling Rights
Why catalogs are being bought at record multiples — and what it means for songwriters.
How Catalogs Are Valued
Catalog multiples are based on NPS (net publishing share) — the net annual publishing revenue after admin fees. A catalog generating $100k NPS might trade at 10-15x multiple in a weak market, or 20-25x in a hot market. Premium catalogs (evergreen hits, diverse revenue streams, clean metadata) command higher multiples. The buyer projects future income, applies a multiple based on risk and growth potential, and that's the offer.
Recent trends: Hipgnosis and Primary Wave have deployed billions buying catalogs, driving multiples up to 20x+ for established works. This creates FOMO among songwriters wondering if they should sell now while multiples are high.
The Buyer Market
Major buyers include Hipgnosis Songs (publicly traded catalog acquirer), Primary Wave (private equity-backed), KKR, and Sony/Universal buying selective assets. These buyers have access to cheap capital and believe publishing will outpace inflation long-term. They're also attracted to catalogs with film sync potential or nostalgia appeal — catalogs tied to beloved artists fetch premiums.
Partial vs Full Sale
A full sale means you give up all rights and future upside — you get a lump sum and walk away. Partial sales let you retain a percentage of future royalties while cashing out now. Some songwriters sell 50%, keeping 50% upside. Others sell off era-specific songs while keeping newer work. Partial deals are complex but let you hedge your bets.
Whether to Sell
Selling makes sense if you need capital now, believe royalty multiples are at peak, or want to diversify away from music income. Don't sell if you expect significant growth (new placements, film syncs, catalog revival), if you're early in your career, or if your catalog generates modest income but you enjoy managing it. Also consider: selling means less creative control over how your songs are exploited.