The Future of Music Rights with Sherrese Clarke Soares - Trapital Summit
Nov 8, 2024
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Sherrese Clarke Soares, Founder and CEO of HarbourView Equity Partners, dives into the future of music rights and the evolving landscape of entertainment investments. She discusses the impact of data analytics on investment strategies and how independent artists can thrive through community engagement. The conversation also covers the interplay between legacy and contemporary artists, alongside the complexities of investing in sports. With insights on navigating the music industry's financial potential, Sherrese offers a fresh perspective on this dynamic sector.
The mature music rights landscape now represents a vital asset class for investors, emphasizes the importance of data analytics in making informed decisions.
Harborview Equity Partners adopts a strategic investment approach that balances classic and contemporary music, targeting both nostalgic older audiences and younger fans.
Deep dives
Evolution of Music Rights Investment
The music rights landscape has matured significantly, transitioning to a more institutionalized asset class appreciated by savvy investors. Recent advancements in data analytics and streaming have enabled investors to make informed decisions based on solid fundamentals, enhancing confidence in the creative ecosystem. The continued influx of sophisticated capital has been crucial, as it recognizes the inherent value in creative content and the insights derived from data. This evolution allows firms like Harborview Equity Partners to effectively support artists and navigate the complexities of investment opportunities.
Balancing Legacy and Contemporary Artists
Harborview's investment strategy uniquely balances a diverse catalog that includes both legacy artists and contemporary musicians. The average age of their catalog is 12 years, reflecting a focus on music from the 2010s rather than solely on established classics from the 70s and 80s. This approach aims to future-proof their investments, ensuring relevance to younger audiences while capturing nostalgia for older generations. The intentional strategy includes partnerships with actively touring artists and titles that resonate with current trends, enabling a connection with today's youth.
Independence and Fandom Over Fame
The podcast highlights how fame can mislead investors, as popularity does not always correlate with revenue. Many independent artists generate significant fan engagement and loyalty, leading to more sustainable revenue streams compared to their more famous counterparts. Understanding unique regional markets and underrepresented communities has become vital, allowing investment firms to discover fruitful opportunities where mainstream media overlooks. Data insights shed light on various niche markets, empowering investors to make informed decisions that go beyond surface-level fame.
Data-Driven Approach in Entertainment and Media
Moving into the entertainment and media sectors, a data-driven mindset remains key in identifying audience trends and investment opportunities. The firm uses proprietary data platforms to gather insights, enabling them to target specific demographics effectively and gauge potential success for content. In an evolving landscape, the strategy involves recognizing undernourished audience segments and aligning creative talents with existing market gaps. By observing trends from the music sector, Harborview seeks to generate synergies across different content forms while remaining adaptable in a rapidly changing media environment.
Here's my fireside chat with the Founder and CEO of HarbourView Equity Partners, Sherrese Clarke Soares, live from the Trapital Summit. We talked about the future of music rights, future-proofing assets, media companies, sports, and more.
We'll be sharing more of our conversations from the summit on this feed, so stay tuned for that!