Music rights business
This is why so many great musicians are now selling their songs
Plate by David Bowie.
© BabichAndrew / Shutterstock
More and more bands and musicians are selling their music catalogs, often in full – what do they get out of it?
After months of negotiations, the music publisher Warner Chappell Music has snatched the rights to the songs by David Bowie (1947-2016) for $ 250 million. Bruce Springsteen (72) even sold his catalog to Sony Music for around $ 500 million a few weeks ago, according to media reports.
The mega deals follow a trend in the music business that numerous other musicians have jumped on: Bob Dylan (80) is said to have sold his catalog to Universal Music for allegedly 300 to 500 million dollars, Fleetwood Mac front woman Stevie Nicks (73 ) donated 80 percent of their music to the US publisher Primary Wave for $ 100 million.
Song rights are as valuable as gold or oil
One name comes up again and again in connection with music rights: Hipgnosis Songs Fund, a British investment fund founded by music manager Merck Mercuriadis (58). He already worked as a manager for Beyoncé (40) and sees song rights as an investment asset “as valuable as gold or oil”. Shakira (44) also had her entire song catalog with him at the beginning of 2021, the sales amount is not known here. And the Red Hot Chili Peppers have also given their song rights to the British investment fund for 140 million dollars.
Evergreens and classics such as those supplied by Bowie, Springsteen or Dylan are particularly interesting for labels and investment companies. With a “proven” song, the income pattern is predictable and reliable, Merck explained in 2019 in an interview with the “Thought Economist”. After a successful purchase, the companies will in future receive the license fees that arise, for example, from streaming platforms or the use of the songs in advertising.
The latter in particular – the commercialization of music through its use in commercials – was still worth a protest song for Neil Young (76) in 1988. In “This Note’s For You” he sang: “Ain’t singin ‘for Pepsi, ain’t singin’ for Coke. I don’t sing for nobody. Makes me look like a joke.” (“I don’t sing for Pepsi, I don’t sing for Coke. I don’t sing for anyone. It makes me look like a joke.”) So times are changing: In early 2021, Young also has 50 percent of his music publishing rights for allegedly 50 to 150 million Dollars sold to Hipgnosis Songs Fund.
Pandemic drives business
But why are the artists selling the rights to their own art? The pandemic plays a major role in this. After the income from live concerts has ceased, some musicians are dependent on the new source of income. Following David Crosby (80) from Crosby, Stills & Nash declared on Twitter at the end of 2020that he too will take the step. His motivations: “I can’t work … and streaming is stealing my record sales … I have a family to support and a mortgage to pay off, so that’s my only option … I’m sure everyone else is too . “
For some, selling their own song catalog seems to have a downright cathartic effect. David Guetta (54), who reportedly sold his catalog to Warner Music for $ 100 million in mid-2021, said he felt more free than ever. It is also “inspiring” to work on a new catalog. “The difference is that this time I don’t have to worry about how to pay my rent if it doesn’t work,” he explained in an interview with “Billboard”.
But not all musicians see it that way yet. Elton John (74), for example, cannot imagine giving up the rights to his own songs, assured his husband David Furnish (59). A sale is “unthinkable”, he told the industry website “Music Business Worldwide” in November 2021.