[HN Gopher] Are Legendary Music Catalogues Worth the Money?
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       Are Legendary Music Catalogues Worth the Money?
        
       Author : Tomte
       Score  : 15 points
       Date   : 2022-03-14 13:00 UTC (1 days ago)
        
 (HTM) web link (www.vulture.com)
 (TXT) w3m dump (www.vulture.com)
        
       | bagels wrote:
       | Article lacks the piece of information needed to come to your own
       | conclusion: current and future revenue projections.
       | 
       | Obviously some think it worth it since these sales are happening.
        
       | lordnacho wrote:
       | Financial models tend to use interest rates to discount future
       | income streams. Interest rates have been very very low lately,
       | even rates going far out into the future.
       | 
       | So where before a PS100 income you get in 10 years might have
       | been worth PS50 now, you might get PS95 now instead when rates
       | are lower.
       | 
       | Incomes from music would be inflated by low rates.
       | 
       | The other thing that is very hard to model is that songs might
       | become unpopular. This is probably more of a downside risk though
       | I suppose it's happened that a song becomes more popular due to a
       | new recording.
       | 
       | If you're an artist it makes a lot of sense to cash out given
       | these two things. Rates cannot get much lower, and chances are
       | your songs will go out of fashion.
       | 
       | Now why does anybody want to buy them? Well just like before the
       | GFC people are looking for all sorts of bonds to sell, and this
       | is one of those unusual deals you can pass by your investors that
       | will make them feel young again, dressed up as a sound financial
       | investment. Of course there's also actual income being made, so
       | it's not a complete scam, but the logic is like any other
       | financial instrument that has long and uncertain future flows.
        
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       (page generated 2022-03-15 23:00 UTC)