AceShowbiz - Since 2007, Golnar Khosrowshahi, founder and CEO of Reservoir, has been actively acquiring music rights, entering the market during a challenging period for the music industry. Reflecting on that era, she describes it as “the not hot, darkest days of the music business,” marked by rampant piracy and uncertainty about whether streaming would become a dominant model for music consumption. Despite these hurdles, Khosrowshahi viewed the situation as an opportunity, though she admits she did not foresee the exponential increase in catalog valuations that would occur over the next 15 years.

Today, nearly two decades later, the catalog market has transformed dramatically. Financial investors of various types are eager to purchase and resell music catalogs, with companies like Hipgnosis pushing prices to unprecedented heights. Artists, recognizing this surge in value, have been motivated to monetize their song rights. Thanks to its early entry and strategic acquisitions, Reservoir has established itself as a significant player in this space, managing rights from legendary artists such as Miles Davis, Joni Mitchell, De La Soul, Hans Zimmer, Sheryl Crow, and Snoop Dogg, among others.

In the latest episode of Billboard’s podcast On the Record, Khosrowshahi provides insight into the catalog market's state as of 2026, its evolution, and her concerns about how changing listening habits might affect the long-term value of hit songs.

The prevailing belief in the industry suggests that the most valuable catalogs tend to be older, classic rock collections, often fetching prices in the hundreds of millions. Conversely, catalogs from genres like country, dance, or hip-hop typically don’t command such astronomical sums. When asked to explain this disparity, Khosrowshahi emphasizes that it’s less about difficulty in selling and more about the breadth and longevity of the music’s listenership.

She elaborates, stating, “How widespread is the listenership of the music, and how long is that going to last? How long is this music going to strike a chord with somebody?” The critical factor is the rate at which revenue from the music declines over time. The ideal catalog is one that remains relevant indefinitely, like the timeless appeal of “Take Me Home, Country Roads,” which continues to inspire countless covers and user-generated content.

However, not all hits have staying power. Khosrowshahi notes that while some songs may be culturally significant at the moment, they don’t necessarily maintain that impact over decades. Lyrics also play a crucial role in a song’s enduring value, especially regarding its suitability for film and television licensing. Music that contains expletives, for example, tends to garner fewer sync opportunities, which can lower its valuation.

There has been a surge in musical biopics recently, which some speculate is linked to top-tier catalogs changing ownership and new rights holders seeking to leverage these valuable assets. Khosrowshahi agrees this is part of the reason but points to the intrinsic appeal of compelling stories. She remarks on the ubiquity of certain biopics, such as Love Story, about John F. Kennedy Jr. and Carolyn Bessette, underscoring how storytelling resonates with audiences. Additionally, increased industry liquidity and larger budgets have made it feasible for rights holders, filmmakers, and music companies to finance such projects.

A poignant example of the emotional complexities involved in catalog acquisitions came when Reservoir obtained rights to the De La Soul catalog shortly before the passing of group member David. Khosrowshahi describes the period as “very, very difficult,” emphasizing the human and emotional toll beyond the business transaction. She shares how the team honored the group with multiple billboards in Times Square, creating a moment to celebrate David’s legacy with his surviving members and families despite the tragedy.

Addressing the unpredictability of artists’ personal lives and how scandals might affect catalog value, Khosrowshahi explains that while Reservoir has largely avoided such issues, they do consider the character and reputation of artists and songwriters before entering deals. She states they sometimes decline partnerships if they feel the artist’s profile or behavior doesn’t align with their values as a business partner.

She distinguishes between artists and songwriters, noting that many songwriters are relatively unknown publicly, so their personal challenges do not usually impact public perception or catalog value. Khosrowshahi reflects that life’s ups and downs occur for all involved, but so far, Reservoir has been fortunate in avoiding significant notoriety among their roster.

As the music catalog market evolves, Khosrowshahi remains attentive to both the opportunities and the risks inherent in acquiring music rights. The balance between timeless appeal and changing cultural tastes will continue to shape how these assets perform in the years to come.