These Stars Turn Their Songs Into Money
02/09 2021

These Stars Turn Their Songs Into Money

For about a year now, numerous industries have had difficulty maintaining or even generating the sales. That also affects the music industry. Recording and selling a new record is no problem, but what about live performances that have been the source of money? These have come to a complete standstill. That has become the main obstacle, especially for the big stars, because the live shows guaranteed their income in recent years. With the triumph of digital music formats, sales of CDs, records and downloads now play only a minor role in their financial considerations. Live shows have long since replaced the sale of music as the most important source of income. But this industry remains on hold, with no resurgence insight.

Bob Dylan Triggered A New Boom

A topic has become topical again that resourceful managers have already discovered an always good source of income for many years. We are talking about song rights. These are now on everyone’s lips again. Responsible for this is the folk legend, Bob Dylan. He surprised everyone a few weeks ago with the announcement that he wanted to sell his rights catalogue. The package included 600 titles with numerous classics of music history. The buyer was the music company Universal Music. The parties agreed not to disclose the purchase price, but rumours quickly surfaced around 300 million dollars. Insiders even said that the price should have been much higher. Dylan had allegedly already rejected an offer of 400 million dollars a year earlier. However high the price had been, one thing is sure. The Nobel Prize winner has collected a considerable sum for his artistic life’s work.

The announcement triggered a real boom in the purchase of song rights from established artists. Among the sellers were, for example, numerous artists from the enormously successful band Fleetwood Mac in the 1970s. They threw their song rights on the market for considerable sums, thus closing the financial gap. Two members of Crosby, Stills, Nash and Young followed suit. David Crosby cashed in just as Neil Young did. However, he chose a different path. Young sold only half of his song rights. But even that turned out to be a good deal since he has a total of around 1,200 songs to offer. He seamlessly joined the ranks of other artists who are now taking advantage of their opportunity. These include not only the stars of the 1960s and 1979s but also singers like Shakira. She also sold her song rights.

The corporations want to secure lucrative income for the future with these acquisitions. After all, the rights have gained further importance following the emergence of the major music streaming platforms. That is because Spotify and Co reward the rights holders with payments according to the number of streams. Thus, the owners can hope for extended amounts. After all, the streaming industry is far from reaching the end of its possibilities. Subscription sales have continued to rise over the last twelve months. More and more customers appreciate the enormous range that the platforms offer them. Fewer and fewer people are buying music; instead, they always have their collection in their pocket. The smartphone has completely replaced the CD player in many areas.

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