Music Royalties & IP Rights
Technical reference for music catalog financing, royalty securitization structures, streaming economics, and IP fund mechanics.
Revenue Streams & Royalty Mechanics
How music generates income—streaming, performance, mechanical, and sync licensing economics.
Streaming Royalty Mechanics
How Spotify, Apple Music, and streaming platforms calculate and distribute royalties—per-stream rates, pro-rata pools, and payment waterfalls.
Performance Rights Distribution
How PROs (ASCAP, BMI, SESAC) collect and distribute royalties from radio, TV, venues, and public performances.
Mechanical Royalties
Statutory royalties for reproduction and distribution—physical sales, downloads, and streaming reproductions via MLC.
Sync Licensing Mechanics
How synchronization licenses work for film, TV, advertising, and video games—negotiation, pricing, and dual licensing requirements.
Rights Ownership & Economics
Master vs publishing rights—ownership structures, revenue splits, and catalog investment implications.
Master Recording Rights
Sound recording ownership and economics—how master rights differ from publishing, artist vs label splits, and catalog investment implications.
Publishing Rights Economics
Musical composition ownership and income generation—songwriter/publisher splits, revenue streams, and catalog investment economics.
Valuation & Investment Analysis
Catalog appraisal methodologies, valuation metrics, and decay risk modeling for music investments.
Music Catalog Valuation Methodologies
DCF analysis, comparable transactions, and NPS multiple frameworks for music catalog appraisal and investment analysis.
Multiple of Net Publisher's Share
Primary valuation metric for music publishing catalogs—calculation methodology, market ranges, and transaction benchmarks.
Catalog Decay Risk
Streaming decline curves, genre obsolescence patterns, and terminal value modeling for music catalog investments.
Structured Finance & Securitization
Cash flow waterfalls, SPV structures, and securitization mechanics for royalty-backed financing.
Music Catalog Securitization
Bowie Bonds structure, waterfall mechanics, and credit enhancement in royalty-backed securities—from SPV formation to investor tranching.
Waterfall Priority
Sequential distribution mechanics in music royalty securitizations—from senior debt to equity.
Cash Flow Diversion
How coverage test failures redirect cash flows in royalty-backed structures.
True Sale
Legal mechanics ensuring bankruptcy remoteness when selling catalog rights to SPVs.
Cayman SPV Structures
Why music royalty funds use offshore SPVs—tax efficiency and bankruptcy remoteness.
Credit & Default Risk
Default mechanics, covenant structures, and credit risk in royalty-backed financing.
Event of Default
Default triggers in royalty financing—streaming threshold breaches, payment failures.
Covenant Breaches
How minimum streaming threshold violations and royalty coverage tests trigger defaults.
Subordination Analysis
Tranche structures in music catalog securitizations—senior notes vs equity.
Market Risk & Liquidity
NAV financing, forced selling dynamics, and liquidity vs credit risk in music funds.
NAV Facilities
Credit lines secured by music fund NAV—catalog valuations and margin call mechanics.
Forced Seller Dynamics
How redemption pressures and margin calls force catalog sales at distressed valuations.
Liquidity Risk vs Credit Risk
Distinguishing temporary catalog price dislocations from fundamental streaming deterioration.