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Commoditizing art, he puts it, never works out that well over time.
With these catalogue announcements, Im seeing two terms that represent different things:songwriting rightsandmusic rights.
Whats the fundamental difference between them?
Or rather, what exactly is being purchased with each?In any song, there are two copyrights.
One copyright attaches to the melody and the lyrics.
With a lot of these deals that have been sold, its typically around the publishing side.
Which of these copyrights is considered most valuable?Historically, publishing has always been more valuable.
You would think there would be veto power there.Yeah, its all about that compulsory mechanical license.
Why does the government get to set the cap?
So they got the money.
It has created a little bit of equilibrium.
This is why the labels have become so enriched.
Thats why these labels have all this money.
Its good business, I suppose.
I happen to think these catalogues are getting incredibly overvalued, which is why theyre not disclosing the amounts.
On the other hand, whats happening is that these song royalties have been normalized because of Spotify.
Its now very predictable in terms of revenue.
Think of it as a bond.
This isnt new, by the way.
Theyre starting to be bought by big institutions because its just predictable money.
I have a feeling thats why some of these sums arent being disclosed, because theyre going down.
If Im an investor, Im thinking,What am I getting for my money?
There was just froth at the beginning, and I think it started to normalize a little bit.
Unless they find new ways to exploit them, thats what theyre betting on.
He said to whoever bought it,Here are the rights, full stop, to my copyrights.
Do with them what you will.
But again, these are valued at what someones willing to pay.
But Im sure it was the right deal for Bob.
But nobody does it quite like him.
These are works by an artist that mean so much to people on a very emotional level.
Its a general feeling of sadness for me that it has just become commoditized to this degree.
This song is no different than some patent on something.
Have at it.But Im undeterred.
If this provides more interest and opportunities, thats great.
But we have to remember that art and music are not the same as a stock certificate.
What do you think about younger musicians selling their catalogues?
John Legend and Jack Antonoff both sold for undisclosed amounts.Were in a hype cycle.
Assets are getting overinflated.
But if youre on the sales side of that moment, you have a decision to make.
Youve also got to understand that its not just an artist or songwriter looking around for deals.
There are so many people involved in these types of transactions, all of whom have a vested interest.
Its hard to turn that down, particularly if youre younger in your career.
Ive seen this for 30 years.
Theres badDunning-Krugerin the music industry.
That tends to end in tears.
If you look at the music business circa 2005 post-Napster but pre-Spotify it was horrible.
Will other forces change?
It remains to be seen.
