Cash Today or Royalties Tomorrow? Why are More Artists Selling Their Music Catalogues?

Over the last few years, music catalogue sales have become one of the biggest trends in the music industry, with more and more bigger players selling their music catalogues. In 2023, Justin Bieber reportedly sold rights to his catalogue for around $200 million, Katy Perry did a deal worth approximately $225 million along with previous deals involving Bob Dylan and Bruce Springsteen and a report in 2024 suggested Queens Catalogue was valued at around $1.2 billion.

Why are Artists Selling?

To many the attraction is clear, rather than waiting yearsor even decades to receive royalties from streaming, radio and licensing opportunities.A catalogue sale provides an immediate financial injection for the artists.This can offer financial certainty, support retirement, fund future projects orjust allow an artist to immediately realise the value of their works.

Why are investors buying?

Music rights are becoming increasingly attractive investments for investors. The growth of streaming platforms has created more predictable royalty income and successful songs can continue generating revenue long after their release. Companies buying up music catalogues will have the expertise and equipment to be able to market and promote such catalogues to further exploit them if needed. Sony, Universal, Duetti, Primary Wave and Hipgnosis have all invested heavily into music rights, contributing to a market that saw billions of dollars spent on acquisitions last year.

The Process

Acquiring a catalogue isn’t just agreeing the price over the rights. Before committing to the purchase, buyers will undertake extensive due diligence work to establish exactly what rights they are acquiring. This can involve reviewing ownership of publishing rights,master recordings, royalty arrangement and historic agreements. Warranties and indemnities will be given to sellers to ensure all rights are correct. The process can sometimes uncover issues relating to ownership, royalty splits or contributor rights which need to be resolved before a transaction proceeds.

Ownership

Ownership of the music rights itself has become an increasingly important topic. Taylor Swift's highly publicised dispute concerning her master recordings brought music rights into the mainstream and highlighted that music rights are not just financial assets. For many artists, they represent creative control, legacy and future earning potential. Similarly, artists including Rihanna and Dua Lipa have taken steps to regain ownership interests in their catalogues, demonstrating that while some artists are looking to sell, others place significant value on retaining control of their work.

Is it for you?

There is no catch all answer to whether an artist or their successors should sell their catalogue. The right decision will depend on the value being offered, future earning potential and the artist's long-term objectives. What is clear, however, is that these transactions are about much more than cashing out. Understanding exactly what rights are owned, what rights are being sold, and the long-term implication of any deal is essential before signing any deal.

Considering a catalogue sale?

If you're thinking about selling your music catalogue, or have been approached by a prospective buyer, we'd be happy to discuss your options. Our Music Team advises artists, songwriters, producers and rights holders on catalogue transactions, ownership issues, due diligence and music rights disputes.

We would encourage you to contact us to discuss the options available to you.