Music Catalog Investors Are Leaving Money on the Table

Passive ownership of music catalogs may seem like a safe bet, but without active management—sync pitching, strategic re-releases, and revenue optimization—catalogs can underperform, while actively managed catalogs can see revenue growth of 700% or more.

Music Catalog Investors Are Leaving Money on the Table

When does active management beat passive ownership?

Private equity and passive investors are pushing up multiples, treating music catalogs like bonds.

But here’s the reality: A catalog without active management can be a depreciating asset.

I have seen companies put in offers at 19x for master's because they believe they can increase the value of the catalog through active management. This means passive investors could be leaving money on the table (unless they have great label and pub partners).

Problem:

More investors are treating music catalogs as set-it-and-forget-it assets:
✅ Buy at 10-20x NPS
✅ Sit back and collect royalties
✅ Hope streaming growth offsets decay

But here’s what they don’t account for:
• Decay curves can erode income fast especially for newer catalogs
• Sync deals don’t happen on autopilot—you need active pitching
• Platform reliance is dangerous—TikTok virality today doesn’t guarantee royalties tomorrow

A poorly managed catalog can underperform expectations, leaving money on the table.

Here’s what happens when a passive vs. active manager takes control of the same catalog:

📉 Passive Approach:
• Collect royalties but don’t optimize revenue streams
• No active pitching for sync or licensing deals
• No strategic re-releases or collaborations to extend song life
• Result? Revenue is lost

🚀 Active Management Approach:
• Directly pitches songs for movies, commercials, and video games
• Reissues catalog through anniversary editions, remixes, and strategic marketing
• Finds new licensing partners in non-traditional markets (e.g., gaming, sports leagues)
• Monetizes international growth, especially in emerging streaming markets
• Keeps songs relevant and increases longevity of the catalog's lifecycle

If you own or invest in music catalogs, here’s how to actively maximize value:

✅ Hire a sync and licensing team (don’t rely on inbound requests)
✅ Analyze your top-performing songs and build relaunch strategies
✅ Leverage collaborations and remixes to bring old songs back to life
✅ Negotiate better royalty collection strategies across international markets

I have seen catalogs increase revenue by over 700% many years after the song was released. This is not by accident. These are planned and well executed strategies.

For some of the most interesting case studies leave a comment with "Case Study" and I will send you a list of strategies that have worked.

The original post from LinkedIn can be viewed here.