Why are Artists Selling Their Catalogs?
From Stevie Nicks to Bob Dylan to Justin Bieber, everybody who is anybody is selling their music catalog.
Two weeks ago, Justin Bieber sold the rights to his music catalog for over $200 million. This transaction seems eye-popping at first glance, but it’s part of a much larger trend. In fact, over the last few years every artist from Bob Dylan to Calvin Harris to Stevie Nicks to Bruce Springsteen have sold the rights to their catalogs. Let’s dissect why this is happening.
Why People are Selling (and Buying) Catalogs
First, let’s understand what it means when an artist is selling the rights to their catalog. When you make a record, there are two copyrights associated with it, one for the recording and one for the underlying composition, or song. The rights to a composition, often called publishing rights, usually belong to the songwriter. The rights to the recording, by contrast, often belong to the artist or label.
So when Bob Dylan made headlines that he was selling his catalog to Universal for $400 million, he was selling the publishing rights to the songs he’d already composed. What this means is that when your local classic rock station plays a Bob Dylan song or an upstart songwriter decides to cut their own version of one of Dylan’s tunes, Dylan no longer collects royalties. Universal does. Furthermore, it’s not necessary for Dylan to approve the use of his songs in movies or television shows. That right also belongs to Universal.
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