Thanks for the write up. I looked at this space from a PE perspective a few years ago. A few points: First, one additional positive is that actually the long tail is very significant. Especially for publishing, but also for Recorded Music. Only a very small % or revenue is any one artist or album in any given year. Also, the % or new mus…
Thanks for the write up. I looked at this space from a PE perspective a few years ago. A few points: First, one additional positive is that actually the long tail is very significant. Especially for publishing, but also for Recorded Music. Only a very small % or revenue is any one artist or album in any given year. Also, the % or new music in any give year is also quite small. As such, as the streaming % increases, this will be both recurring and highly diversified. Second, the give and take between artist and label is not really a new thing and I don't think it has changed all that much, despite the headlines. Established artists will always cut a better deal, can always threaten to go indie, and keeping more of their revenue and retaining more IP vs newer artists. The labels just make a much smaller cut on a bigger pie for established artists and always have. Again, the market is mostly the long tail of many artists in many niches, and thankfully for the labels, most actually don't have negotiating leverage like Taylor Swift.
Thanks for the write up. I looked at this space from a PE perspective a few years ago. A few points: First, one additional positive is that actually the long tail is very significant. Especially for publishing, but also for Recorded Music. Only a very small % or revenue is any one artist or album in any given year. Also, the % or new music in any give year is also quite small. As such, as the streaming % increases, this will be both recurring and highly diversified. Second, the give and take between artist and label is not really a new thing and I don't think it has changed all that much, despite the headlines. Established artists will always cut a better deal, can always threaten to go indie, and keeping more of their revenue and retaining more IP vs newer artists. The labels just make a much smaller cut on a bigger pie for established artists and always have. Again, the market is mostly the long tail of many artists in many niches, and thankfully for the labels, most actually don't have negotiating leverage like Taylor Swift.