ValuePunks Offers Free Music Catalog Valuations for the Independent Sector

Swedish tech company Tribe Music Group has launched a free catalog valuation platform called ValuePunks, aimed at artists and independent labels.

How it works:

• As per Digital Music News, ValuePunks uses a song-by-song discounted cash flow model to value music catalogs, rather than assigning a single value to an entire catalog.

• Each catalog is analyzed using genre-specific growth and decay rates and benchmarked against approximately 5,000 leading artists worldwide, or roughly 1,000 artists within the same genre.

• The benchmarking incorporates metrics including growth, revenue stability, diversification, streams per listener, and geographic revenue distribution.

• Revenue is valued separately by rights type – including digital, physical, neighbouring rights, sync, licensing, and direct-to-fan income – using methodologies such as discounted cash flow models, perpetuity calculations, and multiples, depending on the revenue stream.

The methodology:

• As per Digital Music News, ValuePunks’ valuation system is built and informed by “extensive real-world data” drawn from audits of catalogs representing more than €100 million in annual royalties, analyzed at the line-item level.

What they said:

• Constantin Thyssen, Co-Founder & CEO of ValuePunks: “Most artists never find out what their catalog is worth until a buyer is at the table – and that valuation isn’t really being done for them. The people who made the music should be the best-informed in the room, not the least. So ValuePunks aims to give that to artists and labels for free. That’s a fairly punk thing to do in a market built on gatekeeping, which is why we called it ValuePunks.”