[HN Gopher] Are Legendary Music Catalogues Worth the Money? ___________________________________________________________________ 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. ___________________________________________________________________ (page generated 2022-03-15 23:00 UTC)