(Newswire.net — January 15, 2022) —
For so many years we have seen battles in courts over artists looking to gain control over their masters, from Taylor Swift to the Sex Pistols. The rights to own masters has been in fact something that so many artists have held dear, as this is how they can make the most money from what they have created. Those who own masters are those who can sell, distribute and create merchandising from their music, so why are so many selling up?
In the last 2 years we have seen high profile musicians like Stevie Nicks, The Band, Neil Young and of course our very own Bob Dylan, cashing in on their catalogues. But why is this happening?
Cashing Out Now
Cashing out may be a phrase more often used for casino sites, but in the music world, this is something which many older artists are looking to do with their catalogues. A general consensus here is that age plays a major factor. Take Dylan as a perfect example, he has sold his songwriting catalogue to the Universal Music Group for $400 million. Give that Dylan is now 80 years old, with six children, a $400 million lump is far easier to slice up once he is gone, than the tricky process of splitting up the songwriting catalogue.
Tax Benefits
Joe Biden is seeking to change the way that the tax system works, and bumping up the tax rate from 20% to 37% for high earners. Again to take Dylan’s deal as an example, he paid $80 million in taxes, which would rise to $145 million once the tax laws change. He would be better to buy cryptocurrencythan pay fines, right? Again this could play a major role in the reason why so many are looking to sell up now, before they get hit in the pocket for the sale of those catalogues.
Changing Face of The Market
In the last 20 years music has gone through a digital revolution and that means that the way in which artists and songwriters make money has changed drastically. In the modern day the highest earners are those with the biggest tour numbers, and it is live music which is where the money can be made. As things change, artists like Dylan, Paul Simon and Neil Young recognize that heavy touring schedules are a thing of the past, and over time the value of their estate will certainly be devalued. It makes far more sense to cash in whilst the going is good.
Legal Challenges
Music law is something else which has changed a lot and we are seeing case after case of estates contesting what they believe to be work which has been copied from them. So many of these cases end in settlements for ease, but most claims are completely unfounded and usually wrong. Once you’ve sold those masters however, any legal challenges which would have come your way, will have to be taken up by the publishing group who bought up your catalogue, yet another reason to cash in and get out.
This is why we can expect to see many more artists, especially of the older generation, cash in on those masters.