How to buy a music catalogue, in short
To buy a music catalogue, you agree what rights you are acquiring (masters, songs or an income share), value the catalogue on its verified net income, run due diligence on income, chain of title and registrations, sign an asset purchase agreement, and then transfer every registration to your name. The last step is the one most buyers underestimate. If societies, distributors and publishers are not told about the change of owner, the income you paid for keeps going to the seller or into unmatched pools.
Who buys music catalogues
Catalogue buyers range from major music companies and dedicated rights funds to private equity firms, family offices, independent labels and individuals. Large buyers usually acquire whole catalogues outright. Smaller buyers often buy a share of the income from a single work or album, sometimes through online marketplaces such as Royalty Exchange. The process in this guide applies to anyone buying the underlying rights, whatever the size of the deal. If you are buying only an income share, many of the transfer steps are handled by the platform or the rights owner instead of you.
What you are actually buying in a catalogue acquisition
Masters, songs and income shares
A music catalogue is a bundle of copyrights, contracts and data, and the price only makes sense once you know which parts you are getting. Ask the seller to list, for every work and recording, exactly which rights transfer to you and which stay with someone else.
- Master recordings: the copyright in the recorded performance. These earn from streaming, downloads, physical sales, sync and neighbouring rights (broadcast and public performance of recordings, collected in the UK by PPL).
- Publishing (the songs): the copyright in the composition and lyrics. These earn performance and mechanical royalties, collected in the UK by PRS for Music and MCPS, plus sync and print income.
- Writer's share: in many deals the songwriter keeps the writer's share of performance income, which is paid by societies directly to writers. If you buy the publisher's share only, model your income on that basis.
- Income participation: some sellers offer a percentage of royalties without transferring the copyright itself. You own a right to be paid, not the right to license or control the work.
- Contracts and data: the artist, producer and co-publishing agreements that set what is owed to others, and the identifiers and registrations that make the income collectable.
Where catalogue deals come from
Larger catalogues usually reach the market through specialist brokers, investment banks and music lawyers who run a sale process with a data room and a bid deadline. Mid-sized and smaller catalogues are more often sold directly by labels, publishers, estates and writers, sometimes through marketplaces. Independent labels and estates are a steady source of off-market deals, because many owners are open to a sale but have never prepared for one. If you buy off-market, expect the seller's records to be less complete, and allow more time for due diligence.
The stages of a catalogue acquisition
Most catalogue purchases follow the same sequence. The timings below are typical rather than fixed, and they stretch when the seller's records are incomplete.
- Sourcing and NDA: you sign a non-disclosure agreement to receive income summaries and a catalogue list.
- Initial valuation: you model net income and apply a price, usually expressed as a multiple of that income.
- Heads of terms: you agree price, structure and an exclusivity period in a non-binding letter.
- Due diligence: you verify income from source statements, check chain of title for masters and songs, and audit registrations and metadata.
- Contract: lawyers draft the asset purchase agreement, with warranties on ownership and income.
- Completion: money moves and the copyrights are assigned to you.
- Transfer and re-registration: every society, distributor and licensee is told about the new owner and registrations are updated.
How music catalogue valuation works for buyers
Catalogues are usually priced as a multiple of net publisher's or label share, the income left after paying artists, writers and other rights holders. The multiple reflects how stable the income has been, how old the catalogue is, how concentrated it is in a few hits, and how much of the copyright term remains. In the UK, copyright in a song lasts for the life of the last surviving writer plus 70 years, and copyright in a sound recording generally lasts 70 years from release, as set out in the UK government's copyright guidance. For a fuller explanation of multiples and the factors that move them, read how to value a music catalogue in the UK.
Why net income figures can be wrong in both directions
The income figure you price against can overstate or understate what the catalogue will earn for you. One-off sync fees, back payments and income from agreements about to expire can inflate it. Missing registrations, unclaimed territories and income held as unmatched by societies can deflate it, because that money never reaches the seller's statements. A music royalty audit reconciles the statements against the catalogue's registrations and shows you both kinds of error before you agree a price.
Due diligence checks before you commit
Due diligence on a music catalogue tests three things. First, that the income is real, by reconciling the seller's summary against source statements from societies and distributors. Second, that the seller owns what they are selling, by tracing written assignments for every master and every song. Third, that the registrations and metadata the income depends on are complete and correct. The third layer is the one most deals skip. Our music catalog due diligence checklist sets out each check in detail.
Transferring a music catalogue after completion
Completion transfers the copyright on paper. Royalties keep following the old registrations until each payer is told about the change. Plan the transfer before completion so income does not stall while records catch up. A typical transfer covers these steps.
- Societies for songs: notify PRS for Music, MCPS and the overseas societies of the assignment, so your company is registered as the publisher on each work. In the US, mechanical registrations with The MLC also need updating.
- Societies for recordings: update the rights owner on each recording in PPL's repertoire and with the overseas neighbouring rights societies.
- Distributors: move releases to your distributor without taking them down, keeping the existing ISRCs and UPCs so play counts, playlist positions and payment history carry across.
- Licensees and sync partners: send letters of direction so existing licences pay you from completion.
- Contracts: confirm who now accounts to artists, writers and producers under the agreements you inherited.
- First statements: check the first statements after the move work by work, to confirm the income followed you.
Re-registering and auditing rights during an acquisition
Re-registration is a good moment to audit the catalogue, because every work and recording passes through your hands anyway. Check each registration for missing writers, conflicting splits, wrong publisher shares and absent territories as you transfer it, and fix them at the same time. Moving distributor without preserving ISRCs is one of the most common causes of lost income after a deal, as our guide to switching distributors without losing ISRCs explains. Cleanup carried out during the transfer often recovers income the seller never collected, which is upside the purchase price did not include.
Running the catalogue after you buy it
A catalogue keeps earning only if someone keeps its records current. New uses, new territories, cover versions and changes in streaming services all create registration work. Buyers without a rights department usually appoint an administrator to register works, claim unmatched income and reconcile statements. Our music catalogue management service does this for labels, estates and investors, with collection on a 15% commission and metadata work priced on application.
Red flags when buying a music catalogue
Slow down or renegotiate if you see any of these.
- Income concentrated in one or two works, or in a single recent sync.
- Works listed as Copyright Control on statements, meaning no publisher is collecting.
- Gaps in the chain of title, such as missing producer or co-writer agreements.
- Distribution agreements that end or change terms on a change of ownership.
- Large unexplained drops after the seller changed distributor or administrator.
- A seller who cannot give direct access to society and distributor accounts.
How to start
If you are evaluating a catalogue, start with an independent view of what it contains, where it is registered and where income is leaking. Request a free Catalog Assessment and tell us about the deal and your timeline. If you need a full pre-acquisition review, the catalogue audit gives you a work-by-work findings report you can price against.
Frequently Asked Questions
How do you buy a music catalog?
You agree which rights you are buying, value the catalogue on its verified net income, run due diligence on income, ownership and registrations, sign an asset purchase agreement and complete. After completion, you transfer every registration with societies, distributors and licensees to your name. Without that last step the income you paid for can keep going to the seller or into unmatched pools.
How much does it cost to buy a music catalog?
Prices vary from small sums for an income share in a single song to very large amounts for major catalogues. Most catalogues are priced as a multiple of verified net annual income, and the multiple depends on how stable the income is, the age of the catalogue and how much copyright term remains. Budget separately for legal fees, due diligence and the transfer work after completion.
How long does it take to buy a music catalogue?
A simple deal with well-kept records can complete in a few weeks. Most catalogue acquisitions take two to four months from heads of terms to completion, mainly because due diligence checks each work and recording individually. Allow further weeks after completion for societies and distributors to update their records and for the first statements in your name to arrive.
What happens to royalties when a catalogue is sold?
Royalties earned after the agreed date belong to the buyer, but payers keep paying the old owner until they are told about the change. Societies, distributors and licensees each need notice of the assignment, and some pay in arrears, so the purchase agreement should say who keeps income that arrives late. Check the first statements after transfer to confirm each payer has switched.
Do you need to re-register songs after buying a catalog?
Yes. The new owner must be registered as publisher or rights owner with every society that collects for the catalogue, at home and overseas. Until that happens, the society pays whoever its records show. The transfer is also a good time to correct missing writers, conflicting splits and absent territories, which can recover income the seller never collected.
Published · Updated