Would You Sell Your Song Catalogue?

Jeeni Blog

Helping the next generation of talent to build a global fanbase

Would You Sell Your Song Catalogue?

Today, we hear another mega-star has sold their song catalogue. This time Neil Young has agreed a deal and sold 50% of the rights to his entire back catalogue. Hipgnosis Song Fund purchased 1,180 songs by the Canadian musician in a deal that is said to be worth an estimated $150 million (£110 million), according to the BBC.

The Young acquisition comes after the company acquired the rights to 100% of former Fleetwood Mac singer Lindsay Buckingham‘s back catalogue and 50% of his future work this week, as well as Jimmy Iovine’s worldwide producer royalties. “This is a deal that changes Hipgnosis forever,” Hipgnosis founder Merck Mercuriadis said of the Young deal.

Hipgnosis are known for turning royalties into a steady income stream – with the firm making money every time one of its songs is played on the radio or featured in a film/TV show. Other recent acquisitions by Hipgnosis include catalogues by the likes of Blondie, L.A. Reid, RZA and The-Dream. The company also purchased a publishing portfolio from Kobalt in September. The sale included songs by Fleetwood Mac, 50 Cent, Beyoncé and many others.

The Neil Young sale seems to be part of the growing trend of artists cashing in on their lifetimes work. Bob Dylan was reported in December 2020 as selling to Universal Music. According to the New York Times, the music icon has sold his back catalogue for an eye-watering $300 million (£225 million), giving Universal the ownership of over 600 songs spanning a period of almost six decades.

While the deal means that Universal now control one of the most celebrated back catalogues in history, Dylan is also listed as the principal songwriter on the vast majority of efforts – which means Universal does not have to share future revenues with any other songwriters.

In the same month, Stevie Nicks agreed a deal with Primary Wave for $100million, giving them 80% of her back catalogue which includes her 70's hit 'Dreams' just as it is making a Billboard comeback after going viral in the TikTok video of skateboarder Nathan Apodaca drinking Ocean Spray juice.

To make these kinds of figures, you have to have a catalogue which will give the buyer a payback, but with younger bands such as The Killers doing the same, is this the best way for songwriters, singers and bands to create certain income? With the poor payouts from the online streaming platforms, it makes good business sense, but only for those able to create enough desired material.

For those new and emerging creative stars, companies like www.jeeni.com and Patreon have been created to redress the balance, so revenue generated goes to the creators, not the suits and pen-pushers, meaning artists of the future will possibly be able to afford to create back catalogues and continue to benefit from them.

BACK

05
Jun

MD of Jeeni USA has been honoured as one of the “Top 100 Women of Influence”.

The woman who brought digital entertainment to the world is set to become MD of Jeeni USA. Kelli Richards is based in Cupertino, California, where the mighty Apple Corporation has its headquarters, and where she is honoured as one of the “Top 100 Women of Influence.” An Amazon Number One best-Selling author, and former A&R executive with EMI Music, Kelli played a key role in launching the entertainment division of Silicon Graphics. She’s celebrated as a digital media trailblazer and was responsible for launching Apple’s entry into music and entertainment during her many years with the company. In other words, Kelli Richards was directly responsible for the birth of digital entertainment and global music online, now known as Apple Music. Jeeni founder Mel Croucher worked with Kelli on projects for superstars like Eminem and Prince, and it seemed a perfect fit for Mel to invite her to represent Jeeni in the USA. “I was privileged to have been mentored by the legendary Steve Jobs over a period of several decades,” says Kelli. “I work on cool projects with cool people, and Jeeni is very, very cool.” Kelli Richards at Jeeni-USA HQ Keen to find out more about Jeeni, check out our new website www.jeeni.com

10
Jun

Facing the Broken Music Industry.

By Adam Cowherd @ AmplifyX.com Did you know that artists take home only 12% of the $43 billion spent on music annually, according to Citigroup? [1] The hip-hop artist Russ put it perfectly when he said, “The music business isn’t set up for the artists to get rich. It’s set up for everyone else to get rich off the artists.” [2] If you start looking deeper into the music industry, one of the first things you’ll discover is how broken it is. Artists are the nucleus of the business, but somehow they’re the individuals left with no ownership of their Intellectual Property (IP), inhibited creative freedom, and only a sliver of the earnings. There are so many entities involved in the value chain of music that it has created a convoluted industry structure that lacks equality and transparency. When we break down the mechanics of the music industry, we see just how many hands are in the pot: record labels, managers, producers, booking agents, and streaming platforms. A report by Ernst & Young highlighted the post-tax payouts of streaming revenue and identified that record labels are taking nearly 75% of the payout. [3] Why are artists today signing with record labels? Signed artists have fans. They do not have a majority of royalties, ownership of their masters, or creative freedom. Artists have historically been enticed to join record labels as a way to grow their popularity, because major labels can provide global brand recognition. But the music industry is in the business of making a profit — not in the business of freebies. The artist’s growth may be guaranteed, but not their wealth. Take Thirty Seconds to Mars for instance: after multiple platinum records, they were still millions of dollars in debt to their label. [4] This is a result of the artist being forced to pay the label back for cash advances. Although advances may seem extremely alluring, many don’t realize how hard these loans will be to recoup from their small slice of royalties. Artists thriving off of their album sales are the exception, not the rule. This recognizable gap in income has inspired a large number of artists to start challenging the status quo of record label contracts. Artists today have more tools and resources to build their career — and wealth — independently. Traditional services formerly tied to record labels, like recording, distribution, and promotion, are becoming commodified. Also, modern artists have a wide range of social media platforms to engage listeners on, from Instagram to TikTok to Triller. Artists can grow their fame and find new fans on their own terms—retaining their rights and independence. Evaluating the industry today, music spending is at an all-time high. Goldman Sachs predicts we will have over 1.1 billion people on paid streaming platforms by 2030, generating over $130 billion in music industry revenue. [5] By pursuing alternative ways to release music, artists can take a larger cut of the profits while retaining ownership of their IP and a majority of royalties. The industry is projected to experience massive growth over the next decade. Artists should reap the rewards.

18
Jul

LOCKDOWN OPERA GOES GLOBAL

Ten years ago Pete Wyer won the Best Composer Award for his work with the English National Ballet and London Symphony Orchestra. When his celebration concert was performed in Liverpool, it drew crowds of 60,000. But today, because of Covid restrictions, he can't find a venue anywhere in the world to stage his latest work. SPRING STREET is a new opera, composed, rehearsed and performed during lockdown. The multinational stars and musicians have never even met, except on Zoom. But now they are turning the whole situation to their advantage, and Wyer has decided to release everything for free globally, using social media. He says, "It's been a very happy experience, and we're reaching out to a world-wide audience far bigger than any performance any of us have ever achieved before." Pete Wyer has teamed up with the Jeeni network, who specialise in putting performers in direct contact with their fans. "If a performer sells one T-shirt to a fan on Jeeni, they can make more in a minute than most performers make in a month from streaming services like Spotify and the rest. Jeeni is run by the artists themselves, and that's what appeals to me." SPRING STREET stars Japanese Netflix heartthrob Heday Inoue as The Caretaker, and triple-GRAMMY-Award-Winner Maren Montalbano as The Watcher. SPRING STREET will be premièred throughout the day on Saturday 24th July 2021 on jeeni.com/springstreet and simultaneously released across all social media by a network of thirty-four thousand fans of opera, jazz, poetry and rock music. contact: Shena Mitchell FOUNDING DIRECTOR, JEENI t: +44 7703 567 196e: shena@jeeni.com

Jeeni Blog