Many music industry analysts believe that the arrangement, which also includes some of Guetta’s future projects, might be worth more than $100 million, despite the fact that the actual terms of the agreement have not been made public.
The music acquisition arena has suddenly become the focal point of a great deal of activity. After nearly three decades of turmoil caused by concerns such as piracy and free access, which diminished the market for new music, the music industry is now seeing billions of dollars poured into it. Previously, the music industry has seen billions of dollars put into it.
But what exactly is music acquisition, and why has it become so popular in recent years?
What exactly is acquisition of a music catalogue?
Music catalogue acquisition refers to the practise of making large-scale arrangements in which artists sell their music and its copyrights — either a specific segment of their music or their whole music library — to a specific corporation in exchange for a monetary sum.
Traditionally, the recording rights to music were assigned to a record label and the artists who performed on the record. Usually, the publishing rights were split between another company and the songwriters themselves.
Music acquisition and publication have become one in the new millennium; everything is either purchased by another corporation or a collaboration agreement is reached with the recording or publishing company. With the addition of the artiste’s brand value, this usually includes all of the other assets as well.
What are some of the most notable music purchases that have taken place in recent years?
Universal Group acquired Bob Dylan’s complete musical collection for close to $400 million in 2020, according to reports. The repertoire, which included over 600 songs across six decades, including classics such as “Blowin’ in the Wind” and “Like a Rolling Stone.” The songs included “Blowin’ in the Wind” and “Like a Rolling Stone.”
Singer-songwriter David Crosby declared months after Dylan that he, too, was interested in selling his back library. Finally, in March 2021, American entertainment businessmen Olivier Chastan and Irving Azoff’s Iconic Artist Group acquired his songs by purchasing a controlling stake in the Beach Boys’ intellectual property, which included recording and publishing rights as well as the Beach Boys’ brand name.
Shakira followed suit, selling her 145-song catalogue, which included her Olympic anthem “Waka Waka,” as well as popular songs such as “Hips Don’t Lie” and “Whenever, wherever,” to Hipgnosis Songs Fund, a UK-based publicly-traded investment firm that has since gone on to acquire music catalogues from the likes of Canadian singer-songwriter Neil Young, former Fleetwood Mac singer Lindsey Buckingham, and other artists. The company has a market capitalization of $2.21 billion.