Global Music Index
An index of every listed music company we can find, covering labels and publishing, streaming, live and ticketing, radio, artist agencies and instruments. It is plotted against world equities, so the sector’s beta can be measured over whatever period you select.
Loading three years of daily prices…
The index is being rebuilt.
The chart is briefly unavailable while its data is refreshed. The universe it covers, and how it is constructed, are set out below.
If you need a figure in the meantime, write to signal@puresignal.co.uk and we will send it.
Index vs benchmark · rebased to 100
—
Scroll or pinch to zoom · drag to pan · drag the strip above to move the window · double-click to reset · with the chart focused, arrow keys move the crosshair and +/− zoom.
Rolling beta
—
Constituents
—
| Company | Ticker | Exchange | Type | Region | Weight | Music | Return | Beta | Vol |
|---|
Click a company to plot it on the chart, rebased to the same window. Return, beta and volatility are computed over the period shown above.
Methodology
What is in it
Every listed company we can identify whose value depends materially on recorded music, music publishing, live music, or the instruments and audio hardware the industry uses. They trade on fourteen exchanges and fall into seven business types, from Universal Music Group down to Japanese audio-equipment makers valued at under $50m.
A company joins the index on the first day it trades inside the window, so a recent listing has no effect on the history before it.
How it is weighted
The default is music-adjusted market capitalisation. Each company’s market cap is multiplied by our estimate of the proportion of its enterprise value attributable to music. Sony therefore enters on its music arm rather than on PlayStation, and Kakao on Melon rather than on its platform businesses.
Those exposure estimates are our own judgement. They are shown for each company in the table below, and we expect disagreement on some of them. Market cap and equal weight are provided so you can see how much difference the adjustment makes.
Uncapped, Spotify accounts for roughly a third of the index, which makes the chart largely a chart of one stock. The 10% capped option limits any constituent to a tenth and redistributes the excess across the others in proportion.
How beta is computed
Beta is the covariance of the index’s daily returns with the benchmark’s, divided by the variance of the benchmark’s returns, calculated over the window currently displayed. Changing the window recalculates it. Alpha is the index’s annualised return less beta multiplied by the benchmark’s annualised return, at a zero risk-free rate.
Rolling beta uses a 90-day window, shortened automatically where the selected period is too short to support one.
Where the data comes from
Daily closing prices from free public sources, converted to US dollars at that day’s rate so that companies quoted in different currencies are comparable. Where the primary source provides them, closes are adjusted for dividends and splits, which makes the series a total return series. A company served by the fallback source is adjusted for splits only, so its series is price return. The dataset records which applies to each name.
The data is refreshed every weekday morning. No paid licence is involved at any stage.
What it is not
This is not an investable index, not a recommendation, and not a substitute for a licensed index provider. Market capitalisations are periodic snapshots rather than live share counts, so weights drift with price between updates.
Free data sources occasionally misreport a thinly traded small cap. If a series looks wrong it usually is. Tell us and we will correct the mapping.
Why we built it
Discount rates in this sector are usually built on a beta borrowed from a handful of US comparables, measured over whatever period the data provider happens to supply. The listed music industry runs from Seoul and Tokyo to Mumbai, Stockholm and New York. A beta drawn from that whole population, over a period you choose, is a better starting point.
Need this cut a different way, or want the beta behind a specific valuation?