Yes, financially this is similar to being good at picking credits. Some firms will default, some will not. Buy the ones that won't. Or another related analogy is convertibles, which are a sort of bundle package that is separable. That's not an economically useless activity at all.
The big question though is why does he think he'll be better at this than others? Or rather, for his investors, why will it be better after his fees?
He's got a first mover advantage by the looks of it. It takes some balls to buy a team with music experience to do this new thing. Of course you have the issue that some other guy will just do the same and compete with you, just like umpteen financial businesses (eg Private Equity).
The big question though is why does he think he'll be better at this than others? Or rather, for his investors, why will it be better after his fees?
He's got a first mover advantage by the looks of it. It takes some balls to buy a team with music experience to do this new thing. Of course you have the issue that some other guy will just do the same and compete with you, just like umpteen financial businesses (eg Private Equity).