Quantcast
WITHOUT TOURS, PUBLISHING PROVIDES A BANK

The inability to tour has bolstered the marketplace for music royalties, already a hot-spot for investors thanks to the popularity of streaming.

As the Wall Street Journal noted in a recent article, artists can sell or lease their rights and there’s currently no shortage of buyers, with the likes of Sound Royalties, which operates like a bank providing cash advances on future royalties, and the acquisition-focused Merck Mercuriadis’s Hipgnosis Songs Fund leading the way.

Catalog titles, seen as the safer investments, have seen prices go up since the COVID-19 pandemic set in: A songwriter's share of Rihanna’s “Don’t Stop the Music” pulled in $203,000 and a producer’s slice of REO Speedwagon, which recently received a PPP loan, on their hit 1980 album Hi Infidelity went for $179,500.

“When you look at ‘Don’t Stop Believin’ or ‘Livin’ on a Prayer,’ consumption of these songs has gone through the roof during the pandemic,” Mercuriadis told the Journal.

Songwriters’ catalogs are receiving multiples of 10 to 18 times annual royalties, a rise from eight-13 pre-coronavirus, the Journal reported. Loan deals are reportedly as low as $5,000 and can reach $10m; duration is anywhere from six months to five years.

“The world has finally recognized music rights as a sound alternative asset,” Primary Wave Chief Executive Larry Mestel told the Journal. “The market was very strong before COVID for deals. It got even stronger because artists have a limited way of making money.”

For Journal subscribers, the story can be accessed here.

DIGITAL DRIVES WMG'S FISCAL Q3
Steve Cooper explains. (8/4a)
STREAMING PROVIDES BRIGHT SPOT FOR SONY MUSIC
Feeling the full COVID-19 effect. (8/4a)
COUNTRY STREAMING IS A THING
It's more than just Luke Combs. (8/4a)
NEAR TRUTHS: A HEALTHY MARKET
Star power. (8/1a)
GRAMMY CHEW, ALBUMS: 30 FOR EIGHT
Thoughts while noshing six feet apart. (8/4a)
BTS BRINGS IT
They're so dreamy.
VOTE BY MAIL
It's a conspiracy, because everyone does it.
IS IT CHRISTMAS?
No, but we're thinking about cookies.
WOKE MUSIC
Protest songs that sound like now.
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)