Investment funds are entering the acquisition line in the music industry

As Warner Chapel Music announced the acquisition of the rights to the works of the late English singer David Bowie, companies and investors continued to struggle to acquire the rights to the music legends because of the income they generated. This clear trend in the industry, the evolution of streaming broadcasting and an epidemic. COVID-19 is a catalyst for that.
The deal, signed by “Warner” with Bowie’s heirs, is worth more than $ 250 million, according to Variety, in an undisclosed value, but is part of similar deals with the music industry in recent months.
The last thing that was recorded in the industry was American rock star Bruce Springsteen, nicknamed “The Leader”, who in mid-December awarded Sony the rights to his music for a contract worth over $ 550 million. Tina Turner sold the rights to her business to BNG.
Under the agreement, it describes a statement as “historic” that Warner Chapel bought all of Bowie’s works, from the first “David Bowie” to the latest “Toy” released in November (November), a total of 27 albums. ) 2021, i.e. after his death, will include hundreds of popular songs including “Spice Oddity”, “Ziki Startust”, “Heroes” and “Let’s Dance”.
According to “French” Guy Mod, president of “Warner Chapel Music”, considered the works to be “not only wonderful songs, but important stations that will always change the course of modern music”.
David Bowie, the pioneer of glam rock, is considered one of the most influential musicians of the 20th century. The British singer, who died in January 2016, has left a rich record of notable recordings and songs, most notably “Live on March”, “Ashes to Ashes” and “Rebel Rebel”.
Warner Music, one-third of the music industry, has partnered with Sony and Universal to pay for every Bowie song used on the streaming stage, film or commercial.
The revolution of streaming broadcasting contributed to the re-launch of the music industry after experiencing a difficult phase in the first decade of the 21st century, and this technology has become a major source of income for music rights owners.
Investment funds such as Hypnosis have entered the industry, which in the past was the safety of some large registration firms.
In a recent report released by the company, Merck Mercuryatius, a former director of the business of one of its founders, Elton John, wrote that “songs with high success and cultural influence generate proven revenue for a long time, so they are a very lucrative asset.”
Hypnosis refers to the rights to the works of 146 bands or artists, including “Red Hot Chili Peppers” purchased in 2021 and part of Neil Young’s works, more than 65,000 songs. More than $ 2.55 billion.
Merck Mercuryatius noted that the closure of bars and concert halls during epidemics negatively affected the earnings of young artists, while older works “made more money in streaming because consumers liked the classics during lockdown times.”
By the end of 2020, Universal had acquired all of Bob Dylan’s businesses for $ 300 million.
Hypnosis saw the potential for revenue on new sites like TikTok or Roblox.
Music analyst and radio presenter Alan Gross explained that there are tax breaks for artists, especially the elderly, because the tax on wholesale sales in the United States is lower than normal income.
But there is no consensus among artists on the tides of selling rights to works and transferring them to companies interested in speculation. One of the most popular American singers, Taylor Swift has had great success with two new releases of two of his old albums, announcing that he wants to re-record the first six albums in order to restrict his business rights.
“If I were a successful artist I would make sure I had everything I could sell later,” said Alan Cross, who advocates for the right to make money from artists ’work.
Cross expected the current reality to affect the production of new works, as those who hold the rights to the old will seek to benefit from their investments as the classics still dominate projects, movies and advertising.

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  • Pandora Bacchus

    "Coffee evangelist. Alcohol fanatic. Hardcore creator. Infuriatingly humble zombie ninja. Writer. Introvert. Music fanatic."

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