Would You Sell Your Song Catalogue?

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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.

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05
Jun

Love everything creative and want to be a blogger or a podcast creator?

Are you a professional music journalist or a music student who wants to expand your arena? Are you a collaborator or curator or a podcast creator who would like us to help you distribute your work globally? For each blog and podcast posted we will donate £10 to you and also promote your blog and podcast to all our members for FREE and encourage anyone that reads your blog or listens to your podcast to donate as well, on average bloggers an pod casters can earn from $800 to $2,000 a month. The Independent Musicians and Performers Community (IMAP) has been set up by the founders of Jeeni. Our Community is for everyone and anyone creative: musicians, voice-artists, performers, poets, singer-songwriters ... the list is endless. We connect, collaborate, share and support each other, while we have some fun and make a real difference. We are a completely independent group and have no interest in political debate in this community. We encourage our members to share their original music and performances. We scan the media every day for what support is available for musicians and performers. We make it our mission to wade through lengthy documents and policies so our members don't have to, and we grab the main highlights and takeaways to make it easy for them to absorb the plethora of information swimming around. The industry is being very responsive and coming up with lots of ideas, like allowing artists to keep earning by adding donate buttons on streaming platforms. Some organisations are making grants available, some are discounting their streaming platforms, whereas others are allowing artists and fans to sign up for free. We expect to see many online services partnering with one another to combine their overall membership offerings, such as Soundcloud and Twitch. And we are very interested to see what the major global companies do and how they respond to these new and unknown market conditions. If you fancy joining Team Jeeni as a blogger, pod caster or a contributor and want to find out more just drop me a line and we can start chatting.

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.

26
Aug

Jeeni hits another milestone! 85% of £150,000 target on Crowdcube

Jeeni has reached 85% of its £150,000 target on Crowdcube, thanks to over 130 investors who are celebrating their amazing investor rewards. Jeeni is a fast-growing entertainment company that promotes independent musicians and performers ethically and safely, and where artists get to keep 100% of everything they make. over 2,300 brilliant artist showcasesover 2.7 million audience outreachbuilt-in marketing tools for successGRAMMY-Award-Winning supporters We invite you to help us accelerate our success and scale-up for the best benefit of our members and investors. Join our fast-growing family of investors, and grab your rewards as you help us reach our target! Check out our pitch here. https://bit.ly/3BhEeia

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