Music catalogs have long been a staple in the music industry. These collections of songs, owned by record labels, have traditionally been considered a secondary asset, with most of the focus being on the artists and their latest releases. However, in recent years, music catalogs have quietly emerged as one of the most valuable assets in entertainment. And the person at the forefront of this shift is Golnar Khosrowshahi, founder and CEO of Reservoir Media.
In a recent interview with Billboard On The Record, Khosrowshahi delved into the world of music rights and catalog ownership, and how she has built Reservoir Media into a powerhouse in this space.
Reservoir Media was founded in 2007, long before the music rights market became crowded. Despite this, Khosrowshahi saw the potential in music catalogs and built her company with the goal of becoming a leader in this field. And with a catalog of over 100,000 songs and a roster of top artists such as Camila Cabello and John Legend, it’s safe to say that she has achieved that goal.
But what exactly makes music catalogs so valuable? Khosrowshahi explains that it all comes down to the underlying rights in a song. The ownership of these rights gives a company like Reservoir Media the ability to generate revenue from various sources such as streaming, sync licensing, and even physical sales. And with the rise of streaming platforms like Spotify and Apple Music, these revenue streams have only increased, making music catalogs even more valuable.
But it’s not just about the money. Music catalogs also hold immense cultural value. Every song is a piece of history, representing a moment in time and evoking emotions and memories for listeners. And with the rise of nostalgia in popular culture, music catalogs have become a hot commodity for film and TV productions looking for the perfect soundtrack to capture a specific era or mood.
So who exactly is shaping the future of music ownership? Khosrowshahi believes that it’s a combination of factors, including technological advancements, changes in consumer behavior, and the evolution of the music industry itself. And at the heart of it all is the need for companies like Reservoir Media to continue innovating and finding new ways to monetize their catalogs.
But it’s not just about owning a catalog; it’s about properly managing and nurturing it. Khosrowshahi emphasizes the importance of creating and maintaining relationships with artists and their teams to ensure that their music is being properly represented and utilized. Additionally, she stresses the importance of data and analytics in understanding the value of a catalog and making strategic business decisions.
So where does the future of music ownership and catalog management go from here? Khosrowshahi believes that it will continue to evolve and adapt to new technologies and consumer habits. With streaming expected to continue its dominance in the music industry, companies like Reservoir Media will need to stay ahead of the curve and find new ways to capitalize on this growing market.
In conclusion, Golnar Khosrowshahi and Reservoir Media have played a crucial role in shaping the future of music ownership. Their early recognition of the value of music catalogs has propelled them to the top of this industry, with no signs of slowing down. And as the music industry continues to evolve, it’s clear that music catalogs will remain a valuable and essential asset, with companies like Reservoir Media leading the way.
