Sparkline

Valuing Music Catalogues in the Era of Music Rights Investments

The surge in streaming has transformed music catalogues into lucrative assets, with funds increasingly looking to invest in music rights for their potential to generate steady revenue streams. However, valuing these assets accurately before acquisition presents challenges due to limited data access from platforms like Spotify. Sparkline was developed to address this need, offering funds and investors deeper insights into streaming data to make more informed decisions.

The Growing Market for Music Rights

Music rights are becoming a popular asset class, with funds acquiring music catalogues to capitalise on recurring revenue from streaming. Evaluating the potential value of these catalogues requires more than historical earnings; it demands predicting future trends and performance. Sparkline is designed to provide precisely these insights.

What Sparkline Offers

Sparkline digs deeper into Spotify’s data, revealing insights that aren’t typically available through the platform. Through our reverse engineering efforts, Sparkline collects detailed metrics such as stream counts, follower growth, monthly listeners, and popularity trends—vital data points that help investors assess the long-term value of music catalogues.

Key Features for Investors

Sparkline provides several essential metrics for evaluating music rights investments:

• Stream Counts: Offers detailed views of daily, weekly, and monthly play counts for individual tracks, providing insights into sustained popularity and potential future growth.
• Follower Growth: Monitors changes in follower numbers over time, which can indicate fan engagement and artist loyalty.
• Monthly Listeners: Tracks the number of unique listeners an artist attracts each month, a key indicator of an artist’s current reach and potential for future audience growth.
• Popularity Trends: Analyses shifts in an artist’s popularity over time, helping to identify growth opportunities or potential declines.

This data is presented on a comprehensive, intuitive dashboard, allowing for quick insights and deeper analysis. It aids funds in identifying not only established hits but also emerging tracks and artists that could represent undervalued investments.

How Sparkline Works

Sparkline is available by request, tailored specifically for investors and industry professionals. Once access is granted, users can connect their Spotify accounts and start tracking the artists they are interested in. By focusing only on the artists that users choose to follow, Sparkline remains efficient and cost-effective, zeroing in on the most relevant data.

Real-World Impact

Funds like Blackstone have used Sparkline to forecast future revenue streams using various statistical models, such as Monte Carlo simulations and Bayesian analysis. This approach allows Sparkline to offer a unique perspective on Spotify’s data, providing crucial insights for strategic investment decisions in the music industry.

Request Access

While Sparkline isn’t available to the general public, interested parties can request access. By concentrating on specific, actionable data, Sparkline fills a crucial gap in the market, enabling investors and funds to make better-informed decisions about music rights acquisitions.