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The iconic American rock band Kiss recently joined a growing list of artists who have capitalized on their musical legacies by selling their catalog and associated intellectual property. The transaction with Pophouse Entertainment Group from Sweden is projected to be in excess of $300 million. This movement sees artists and rights holders cashing in on their music rights for considerable payouts.
This venture has turned into a lucrative affair as catalog music constitutes two-thirds of all streaming content, which in turn represents 84% of the music industry’s total revenue. While not all transactions disclose the financial details, some figures are reported to be up to $500 million—with expectations that this record could be shattered by a potential sale of Michael Jackson’s vast collection.
Here are several prominent examples:
Bruce Springsteen
In the twilight of 2021, “The Boss”, popular for tracks like “Born to Run” and “Hungry Heart,” handed over his entire music collection to Sony Music Group for a staggering $550 million, as reported by The New York Times.
Bob Dylan
Procuring rights to over 600 songs penned by the Nobel laureate, Universal Music Publishing Group finalized an agreement with Bob Dylan in 2020. Classics such as “Blowin’ in the Wind” and “Like a Rolling Stone” were part of the deal, with industry speculation placing the value between $300 million and $500 million.
Paul Simon
Acclaimed for both his solo ventures and his collaborations as part of Simon & Garfunkel, Paul Simon passed on his music repository to Sony Music Publishing in 2021. Notable songs like “The Sound of Silence” and “Mrs. Robinson” were included.
Neil Young
Historically resistant to commercializing his music, Neil Young divested a 50% stake of his song trove, spanning some 1,180 compositions including “Heart of Gold” and “Rockin’ in the Free World,” to Hipgnosis Songs Fund the same year.
David Bowie
Warner Music Group, in 2021, procured global rights to David Bowie’s music, starting from the year 1968, which encapsulates hits like “Space Oddity” and “Let’s Dance,” though the financials were not made public.
Taylor Swift
When Scooter Braun’s Ithaca Holdings acquired Big Machine Label Group in June 2019 – home to Taylor Swift’s first six albums – for $300 million to $350 million, Swift took measures to re-record those albums, delivering “Taylor’s Version” to reclaim control over her early works. The next year, Braun sold the rights to the Swift catalog to Shamrock Capital for a sum exceeding $300 million.
Kiss
With their recent transaction, Kiss transfers their music catalog, branding, and intellectual properties to Pophouse Entertainment Group, drawing over $300 million as announced.
Justin Bieber
In 2023, Justin Bieber joined the ranks by selling rights to his song collection, including smash hits “Baby” and “Sorry,” to Hipgnosis. Reported by Billboard Magazine, the arrangement is said to be valued around $200 million.
Sting
Last year, Sting fetched an undisclosed payment for his musical legacy’s rights, including chart-topping tracks “Every Breath You Take” and “Roxanne,” from Universal Music Group.
Phil Collins
Phil Collins and his fellow Genesis alums, Tony Banks and Mike Rutherford, transferred their music rights to Concord Music Group in 2022 as revealed by The Wall Street Journal, for a deal worth $300 million.
Shakira
Hipgnosis obtained the entirety of the Grammy-winning singer Shakira’s publishing rights—covering 145 songs like “Hips Don’t Lie” and “She Wolf”—early in the year 2021.
Stevie Nicks
Fleetwood Mac’s own Stevie Nicks sold an 80% stake in her catalog to Primary Wave for an estimated $100 million in late 2020. Following this move, Lindsey Buckingham sold his publishing rights to Hipgnosis, Mick Fleetwood sold his entire recorded music catalog to BMG and posthumously, Christine McVie’s estate sold her share in Fleetwood Mac’s recorded music to HarbourView Equity Partners in 2023.
FAQ Section
Why are artists selling their music catalogs?
Artists may sell their music catalogs for a variety of reasons: for monetary gain, to ensure financial stability, or to pass on their legacy to a company that will manage their works after they retire or pass away. The surge in streaming revenue has made these catalogs valuable assets.
What does it mean for an artist to sell their catalog?
When an artist sells their music catalog, they transfer the rights of their music—such as the recordings and songwriting credits—to another party in exchange for a lump sum or structured payments. This includes the rights to use, manage, and earn income from the music.
Does selling their catalog affect an artist’s control over their music?
Yes, once an artist sells their catalog, they typically give up most or all control of how their music is used and monetized. However, contracts can vary, and some artists may retain certain rights or creative control.
How are the prices determined for these music catalog sales?
The prices for music catalog sales are determined by factors such as past earnings, potential for future earnings, the popularity of the artist, and the demand for their music in various mediums such as film, television, and commercials.
Conclusion
The trend of selling music catalogs continues to reshape the music industry’s landscape, as notable artists and their estates find value in leveraging their life’s work into significant financial deals. With the advent of streaming and the redefinition of intellectual property management, more artists may seek to secure their legacies and financial futures through these sizable transactions.