Record label and music publisher financial model, built free.
A three-statement Excel model for a record label and music publisher, built from your own figures and checked to balance.
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We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more
Signs artists and songwriters, pays advances recoupable from their royalties, releases new music and exploits a back catalogue of recordings and compositions through streaming, physical, sync, performance and mechanical income, and may distribute other labels for a fee.
In short
- 01
Three linked statements
Income statement, balance sheet and cash flow, linked in every period.
- 02
Valued two ways
Discounted cash flow and trading multiples, side by side.
- 03
Monthly to annual
Monthly, quarterly, half-yearly or annual periods, for up to 30 years.
- 04
Checked every period
A Checks sheet shows the balance sheet balances and the cash reconciles.
The sample, as Excel draws it.
Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.
The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.
How the model works for a record label and music publisher.
- How it earns revenue3 formulasCatalogue royalty income · All cataloguesCatalogue revenueGross royalty receiptsLess deductions at sourceCatalogue acquisitions · Across the businessPayments for catalogue acquisitionsPurchase price (income × multiple)Deal costsCatalogue acquisitions · Across the businessNet income earned from catalogues acquiredAnnual net income at the end of the periodAnnual net income acquiredshare of the year
- What drives its costs3 formulasArtist and songwriter royalties · All cataloguesArtist royaltiesRoyalties on legacy dealsRoyalties on net-receipts dealsArtist share on distribution or licence dealsArtist and songwriter royalties · All cataloguesRoyalties payableArtist royaltiesDays in periodDays of royalties owed at period endA&R, recording and marketing costs · Across the businessA&R, recording and marketing costsA&R and recording costsMarketing and video costs
- What it invests in3 formulasCatalogue carrying value · All cataloguesFair value gain / (loss)Catalogue value at period endfrom catalogue valuationOpening carrying valueCatalogue carrying value · All cataloguesClosing carrying valueOpening carrying valueFair value gain / (loss)Amortisation (nil at fair value)Corporate fixed assetsCapital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capex
- How it is funded3 formulasDebtRepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweepDebtClosing balanceOpening balanceDrawdownsRepaymentsDebtInterest expenseOpening balanceAll-in interest rateshare of the year
- How profit becomes cash3 formulasRoyalty collection lag and accrued income · Across the businessAccrued royalty incomeDigital streaming and downloadsPerformance incomeMechanical and synchronisation incomeInternational income through sub-publishersWorking capitalTrade receivablesRevenuefrom statementsDebtor daysDays in periodWorking capitalInventoryDirect costs (positive)from statementsInventory daysDays in period
20 parts, each one tested.
Every part is a tested building block with its own checks: yours is put together from the ones your business needs.
- CPI forecastConsensus curve with long-run anchor
- Exchange rate (US dollar)Exchange rate by financial year
- Operating expensesHeadcount build by function
- Corporate costsFixed cost base indexed to CPI
- Working capitalFull working capital
- Income taxCorporate rate with tax losses
- Corporate fixed assetsStraight-line over remaining life
- DebtAmortising term loan
- Dividends and distributionsPayout of net profit
- Discounted cash flow valuationDCF on free cash flow to the firm
- Multiples valuationEV / EBITDA multiple
- Catalogue acquisitionsNet share × purchase multipleCatalogues bought at a multiple of their income, the consideration paid, and the income added from completion.
- A&R, recording and marketing costsPercentage of revenueRecording, video and marketing spend on releases and the A&R team that signs and develops artists.
- Distribution and artist servicesDistribution fee (agent)Fees earned distributing third-party labels and self-releasing artists to streaming services and retail.
- Royalty collection lag and accrued incomeMonths of income by typeRoyalty income earned but not yet received — income moves through services, distributors and collecting societies before reaching the owner.
- LeasesLease register
- Catalogue royalty incomeAge-based decay curveIncome a catalogue of recordings or compositions earns from streaming, physical, sync, performance, mechanical and neighbouring rights.
- Artist and songwriter royaltiesRoyalty rate by deal typeRoyalties owed to artists and writers on catalogue receipts, administration fees, and the royalties payable balance.
- Catalogue carrying valueFair value through profit or lossThe catalogue held at amortised cost or at fair value, with amortisation, revaluation and impairment.
- Catalogue valuationDCF of decaying incomeThe value of each catalogue from its forecast net income, used for NAV and lending.
The numbers it tracks.
- 01streaming revenue
- 02recorded and publishing revenue
- 03artist royalty rate
- 04unrecouped advances
- 05catalogue share of revenue
- 06EBITDA margin
- 07net label and net publisher share
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Looking for a record label and music publisher financial model template? Ours arrives built for your business, with your figures in it.
See a finished model, sheet by sheetThe sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.