The artistic value of music is impossible to calculate. Only the individual listener can determine that.
But the economic value of a music catalog is measurable. Doing so gives songwriters the knowledge they need to demand fair compensation. It helps them set realistic expectations and make informed decisions.
However, the lack of standards and transparency makes estimating a catalog’s value very inefficient, and often unfair.
So today we’re introducing a free resource that provides songwriters an instant valuation and analysis of their catalog.
We call it the Know Your Worth app. In the words of award-winning songwriter Michelle Lewis... "it's like Zillow for royalties."
The app analyses songwriters' public performance statements from their PRO, and automatically produces a personalized report with details that until now were unavailable from a single source.
- A dollar range estimate of the catalog's fair market value
- A full accounting of the lifetime and last 12 months earnings for the catalog provided
- A list of the catalog’s top-earning songs
- The catalog’s top sources of revenue by format (radio, streaming, TV/Film, etc.)
- Year-over-year trending data for all earnings, top songs, and top formats
Finally, it provides the first-ever analysis of what each songwriter earns in public performance royalties on specific streaming services through a metric we call the “Latte Index”—or the number of streams on each service needed to buy a Starbucks Latte.
With this information in hand, creators and their representatives can make more informed catalog management decisions—including evaluating any advance or acquisition offers they may receive.
Several songwriters tested the app during its development, and gave us some very helpful feedback along the way.
“This is pretty cool,” said songwriter and performer Zoë Keating, who’s known for her advocacy of financial transparency in the music business. “Songwriters know their work is valuable, but it can be abstract when the royalty money trickles in over years. There are times when a lump sum investment might be what they need to take their careers to the next level. So this app is really compelling. I'm impressed."
Here's a quick walkthrough of how it works...
At launch, the app supports statements from PRO organizations ASCAP and BMI. We’ll soon add other royalty sources and types.
The Know Your Worth app is entirely free, and without any obligation to work with Royalty Exchange to view the results. Simply visit worth.royaltyexchange.com to try it out.
WHY WE’RE DOING THIS
The music business is based on creation. And while we don’t create music ourselves, we pride ourselves for creating value for those who do.
To date, Royalty Exchange has brought $40 million of investment into the creative community. That’s $40 million of new money coming into the music business, mostly from investors who previously had no way to invest in it before. And this mostly benefits creators who previously had no access to investors eager to bring capital into the industry.
The Know Your Worth app is just one way we hope to level the playing field for music creators. For too long, songwriters have had limited access to reliable information about the economic value and potential of their hard work.
Arming them with more knowledge about the most important asset they own—their catalog—empowers them to make confident decisions, avoid bad deals, and have the freedom to pursue their art without restrictions.