COVID-19 Impact on a catalogue's performance

The royalties and the performance of some catalogues have been impacted by COVID-19

The COVID-19 pandemic has had a significant impact on the music industry, mirroring the outcome across all artistic & cultural sectors. Many music events, including festivals, concerts, tours and award shows have been cancelled or postponed.

On the distribution side, numerous artists delayed releasing new albums or tracks, mainly due to the inability to leverage shows and touring to promote. The music business has also been subject to reductions in advertising spending, influencing the global industry.

As a result, royalty revenues in the sector have been impacted, mainly noticeable in revenues generated from live events. On a positive note; consumption of recorded music and streaming have experienced widespread positive performances.

A catalogue may display negative observed yields, when the total amount of royalty income flows for that specific reference period are not covering at least the initial catalogue price.

The valuation of a music catalogue is based on the (limited) number of years of the transaction, together with numerous other factors such as past earnings, popularity of the creators and projected future projects and earnings. Yields are assessed based on the catalogue's valuation and the expected royalty income streams for that reference period, providing a potential additional return.

While the catalogue's valuation takes into account a longer reference periods, earnings during a certain reference period may be below the (expected) long term averages (as is the case during the COVID-19 industry slowdown). Hence, displaying a negative yield. For more info, reach out to our team at