Companies and investors continue to scramble to own the rights to music giants because of the income they generate, as Warner Chapel Music announced that it had bought the rights to the works of the late English singer David Bowie, in a deal that is the latest in this clear trend in this field, in the form of the evolution of streaming broadcasting and a pandemic. COVID-19 is a catalyst for it.
This deal, signed by “Warner” with Bowie’s heirs, at an undisclosed value, but exceeding $ 250 million, according to “Variety”, is part of a group of similar deals that have marked the music industry in recent months.
And the last thing recorded in this field was that the American rock star Bruce Springsteen, nicknamed “The Leader”, ceded the rights to his musical works to Sony in mid-December, in a deal valued at more than 550 million dollars, following he preceded him in that. Tina Turner, who sold the rights to her business to BNG.
Under this agreement, which it described in a statement as “historic”, Warner Chapel Music acquired all Bowie’s work, a total of 27 albums, from the first “David Bowie” 1967 to the latest “Toei” released in November (November). ) 2021, i.e. following his death, and includes hundreds of songs, including very famous ones such as “Spice Oddity”, “Ziggy Stardust”, “Heroes” and “Let’s Dance”.
According to “French”, Guy Mott, president of “Warner Chapel Music”, considered in a statement that these works “are not just amazing songs, but are prominent stations that changed the course of modern music forever.”
David Bowie, a pioneer of glam rock, is considered one of the most influential musicians of the 20th century. The British singer, who died in January 2016, left a rich record of notable records and songs, most notably “Live on March”, “Ashes to Ashes” and “Rebel Rebel”.
The agreement allows Warner Music, one of the music industry’s Big Three along with Sony and Universal, to get paid for every Bowie song used on a streaming platform, in a movie or in an advertisement.
The revolution of streaming broadcasting contributed to the re-launch of the music industry following it experienced a difficult phase during 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 Hipgnosis have entered the sector, which in the past was the preserve of some major record companies.
In a recent report issued by the company, one of its founders, Merck Mercuriadis, former director of Elton John’s business, wrote that “songs with high hits and cultural impacts produce proven revenue over the long term and are therefore a very profitable asset.”
Hipgnosis indicates that it owns the rights to the works of 146 bands or artists, including the works of “Red Hot Chili Peppers” and part of the works of Neil Young, acquired in 2021, that is, more than 65,000 songs, valued at more than 2.55 billion dollars.
Merck Mercuriadis notes that the closing of bars and concert halls during the pandemic has negatively affected revenues from young artists, while older businesses have generated “high revenue in streaming, as consumers tend to turn to classics during lockdown periods.”
At the end of 2020, Universal acquired all of Bob Dylan’s business for an estimated $300 million.
Hipgnosis saw potential for revenue on newer platforms such as TikTok or Roblox.
As for artists, especially older ones, there are tax benefits, explained Alan Cross, a music analyst and radio presenter, because the tax on wholesale in the United States is lower than it is on ordinary income.
But there is no consensus among artists on this wave of selling rights to works and transferring them to companies interested in speculation. Taylor Swift, one of the most famous American singers, has achieved great success through two new releases of two of her old albums, following she announced her intention to re-record the first six albums in order to regain control of her business rights.
“If I were a successful artist, I would also make sure I had everything I might sell later,” said Allen Cross, who advocates for artists’ rights to make money from their work.
Cross expected that the current reality will affect the production of new works, because those who acquired the rights to the old ones will seek to benefit from their investments, given that the classics still dominate programs, films and commercials.
