Music publishers had a big year in 2019, but songwriters are still waiting for their raise pending an ongoing legal battle. Meanwhile, Warner Music's IPO sets the stage for continued investor interest in music royalties.
In November 2018, the government-mandated Copyright Royalty Board (CRB) said that, for five years from 2018 onwards, this “all in” rate would rise by around 1% annually, up to 15.1% in 2022.
Music publishers in the United States banked $3.72bn in revenues in 2019 – up 11.6% year-on-year, and the equivalent of just over $10m a day.
Warner's enterprise value peaked at 26.8 times its trailing 12-month EBITDA of $755 million ($34.76 per share on June 5), which could set a tone for future deals that a major music company can be worth 20 to 25 times EBITDA