Content Valuation
The necessity of contents valuation
Recent diversification of distribution media of entertainment contents is pushing libraries of past contents into the spotlight. This is because libraries that have been written off from balance sheets of entertainment companies are expected to generate additional revenue from emerging distribution channels. In the entertainment industry, financing with libraries as collateral and M&A with intent to profit from an effective use of past contents are gaining momentum.
In order to make decisions about contents backed lending, investment in contents, and M&A, key success factors are rational cashflow projection and an adequate risk discount rate, based on detailed analyses of track records. That is, the importance of more objective valuation of contents has been growing.
Contents Valuation Services
Compared with valuation of standard business, contents valuation is a herculean task because of its great uncertainty of future revenues and other factors. In addition, most of earnings structures of the contents business are unique, and therefore it is critical to have an accurate understanding of those in each contents.
Specializing in the entertainment business, Bizadvisors has acquired abundant experience and knowhow in designing financial structure and management consulting. With such the experience and know-how, Bizadvisors displays its great business acumen in conducting persuasive contents valuation.
