In the music business, a catalog is simply a collection of music rights that someone owns or controls. The word gets used a lot in headlines about big deals, but catalogs exist at every level, from a legendary songwriter to an independent artist with a few albums.
What a catalog contains
A catalog can include one or both of these rights:
- Publishing rights: the rights in the songs themselves (melody and lyrics).
- Master rights: the rights in specific sound recordings.
It can also include related income streams, such as an artist's royalty from a record contract, a producer's points or neighbouring rights. See Masters vs Publishing: What You Can Sell.
How a catalog earns money
- Streaming on services like Spotify, Apple Music and YouTube.
- Performance royalties when songs are played on radio, TV, in venues and online.
- Mechanical royalties when songs are reproduced.
- Sync licensing in film, TV, ads and video games.
- Downloads and physical sales, now smaller but still relevant for some genres.
Front catalog vs back catalog
Labels often call recent releases the "front line" and older releases the "back catalog". Back catalog music now makes up the majority of streaming consumption, which is one reason investors value it.
Why people buy catalogs
Investors see music royalties as a long-term income stream that is not closely tied to stock markets. Publishers and labels buy catalogs to grow their repertoire and increase licensing opportunities. For sellers, a sale turns future income into capital today.
How a catalog is valued
Most buyers value a catalog as a multiple of its normalized annual net income, adjusted for the age, stability and diversification of that income and for how clean the rights are. Read How Much Is My Music Catalog Worth?.
Do you have a catalog?
If you have released music and receive royalties, you have a catalog, even if it is small. The next step is understanding what it contains and what it could be worth. Try our free catalog readiness check or explore the glossary for key terms.