MBW’s Stat Of The Week is a series in which we highlight a single data point that deserves the attention of the global music industry. Stat Of the Week is supported by Cinq Music Group, a technology-driven record label, distribution, and rights management company.
The music rights market was on fire in 2021.
MBW estimates – based on confirmed prices and information from industry sources – that at least $5.05 billion was spent on catalog and music rights acquisitions across the 60-plus big-money deals we reported on during last year.
That figure includes deals for individual catalogs sold by artists and songwriters, plus acquisitions of music rights portfolios (including those owned by active labels/publishers) by companies from other companies.
Close to half of MBW’s estimated $5.05 billion total sum – some $2.33 billion – was spent on acquisitions of rights directly from artists, songwriters and/or their estates.
And the pace (and price) of such deals is accelerating: In December alone (excluding WMG’s $400 million acquisition of 300), deals worth at least $720 million were struck for artist and songwriter catalog sales.
At least $500 million of that December tally came from Bruce Springsteen’s confirmed sale of his entire masters-plus-publishing catalog to Sony Music Group (and Eldridge Industries), the first time the half-a-billion dollar mark has been crossed for the catalog of an individual artist.
Could there be a bigger individual artist catalog deal in 2022? And could the massive total amount spent on catalogs in 2021 be surpassed this year?
There’s a good chance that it might.
The 2022 rights M&A market kicked into action last week Monday (January 3) with the news that Warner Music Group, via its Warner Chappell Music subsidiary, had acquired the global music publishing rights to David Bowie’s song catalog.
The price of the deal was in the region of $250 million.
We also learned last week that US songwriter and performer John Legend had sold his songwriting catalog for an undisclosed fee to BMG and KKR.
That transaction took place in September 2021, suggesting that MBW’s $5.05 billion estimate above might just be the tip of the iceberg; clearly, as in the case of Legend’s sale, our number doesn’t take into account those artists/writers who sold a catalog… but decided to stay quiet about it.
As we prepare for another potentially seismic year for the catalog deals market, below MBW has printed a big list of pretty much all the music rights acquisitions that hit MBW’s headlines in 2021, inclusive of many prices that were confirmed or – via MBW sources – rumored at the time.
This list primarily formed the basis for our headline calculations in this story.
Before we get into all of that, though, a few important caveats on our number above, and our list below:
The below is certainly an extensive list, covering as it does the vast majority of M&A music deals covered by MBW in 2021, but it’s not an exhaustive one. There will be a few big money catalog deals, for example, that were never confirmed or announced at the behest of the writer/artist in question, which likely add up to hundreds of millions of dollars;
We have discounted two huge 2021 music biz deals from our list/calculations, on the basis that they were acquisitions of music companies that were not rights-ownership-led: The first is HYBE’s $1 billion acquisition of mega-manager Scooter Braun’s Ithaca Holdings (which included rights via Big Machine and other Ithaca holdings, but appeared to be primarily led by Braun’s artist management facility); the second is Sony Music Group’s $430 million acquisition of Kobalt’s AWAL and Kobalt Neighbouring Rights, neither of which was a music rightsholder. Where possible, we also haven’t included acquisitions where no underlying rights were purchased (e.g. BMG‘s acquisition of Mick Fleetwood’s personal royalty stream for his recordings);
We’ve only included deals where the buying party acquires a sizable stake in the rights in question.
And now, here it is: that Big List O’ Deals you saw covered on MBW in 2021…
December 2021: at least $710m in writer/artist sales + $400m for 300 Entertainment
Tempo Music acquires publishing rights from producers Stefan Forrest, Morten Ristorp and Morten Pilegaard.
Sony Music buys entire Bruce Springsteen catalog for $500+ million. Sources suggest to MBW that the total amount paid to Springsteen for the double acquisition was around $550 million.
BMG and KKR announce first joint acquisition: The ‘entire music interests’ of ZZ Top. Trusted industry experts expect the KKR/BMG deal for ZZ Top carried a significant eight-figure price-tag, likely around the $50 million mark.
Warner pays $400 million in cash to acquire 300 Entertainment.
CTM Outlander buys music rights from Grammy-winning songwriter Natalie Hemby.
Primary Wave buys stake in publishing catalog of the Waterboys’ Mike Scott, as well as a bundle of rights related to Teddy Pendergrass’s music in a “multi-million-dollar deal”.
Tempo Music buys a majority stake in the master rights and compositions in two albums from Korn; MBW sources indicate this was an eight-figure transaction.
Hipgnosis Songs Fund has confirmed that in the April-September 2021 period, it spent a total of USD $260 million on music copyrights. These acquisitions included the below Christine McVie catalog, but also the song catalog of the Red Hot Chili Peppers, a deal which is understood to have cost Hipgnosis around $140 million.
August 2021: at least $110m in writer/artist sales
Primary Wave buys stake in Prince estate, encompassing publishing, master recording income and more
Primary Wave acquired “100% of the inheritance” of Prince’s youngest of six siblings, Omarr Baker, as well as 90% of sister Tyka Nelson’s stake and 100% of the stake held by Alfred Jackson. An article from the Wall Street Journalfollowed, stating that through these deals, “Primary Wave is lined up to own about 42%” of the legendary singer’s estate, which the WSJ added is “valued somewhere between $100 million and $300 million”.
Tempo Music buys into music catalog of Twenty One Pilots’ singer-songwriter Tyler Joseph.
Hipgnosis buys a catalog from Fleetwood Mac’s Christine McVie. Judging by declared income figures for the catalog – and Hipgnosis’ typical multiple as per public filings – the deal would have cost around $27 million.
July 2021: Primary Wave and Concord keep the M&A train moving
Primary Wave acquires music publishing catalog of songwriter and producer Steve Kipner.
Concord Music Publishing acquires catalog of Grammy Award-winning songwriter Lori McKenna.
Primary Wave buys 50% stake in master recordings of musician Chris Isaak (pictured) in ‘multi-million dollar’ deal. MBW sources suggest this one ran into the eight figures.
June 2021: At least $150 million in writer/artist sales + Reservoir’s $100 million Tommy Boy buy, and Sony‘s nine-figure Alamo swoop
Reservoir acquires catalog of legendary rock producer Tom Werman.
Primary Wave acquires majority stake in music publishing catalog of AWOLNATION’s Aaron Bruno.
Hipgnosis buys 178 songs from Lorde, Taylor Swift songwriter Joel Little. Judging by declared income figures for the catalog – and Hipgnosis’ typical multiple as per public filings – the deal would have cost somewhere around $45 million.
Influence Media Partners buys catalog from Grammy-nominated songwriter Julia Michaels.
Primary Wave buysCarl Sturken and Evan Rogers catalog, including master royalty income stream across Rihanna’s first seven albums in ‘multi-million deal’.
Hipgnosis acquires 105 songs from Grammy-winner Andrew Watt in eight-figure deal; MBW estimates this at “upwards of $45 million”.
April 2021: $400 million for Downtown’s catalog, as Sony spends another $255m
Concord buysDowntown’s owned music copyright catalog for around $400 million.
Primary Wave buys catalog of Madonna collaborator Patrick Leonard in ‘multi-million-dollar deal’
After launching $100m fund, Influence Media buys catalog from Grammy-nominated songwriter Ali Tamposi.
Sony Music Group spends $255 million buying Som Livre, Brazil’s biggest non-major-owned record label.
March 2021: At least $250 million in writer/artist sales
Paul Simon (pictured) sells song catalog to Sony Music Publishing. Sony didn’t disclose the price of the deal, but sources tell MBW it was upwards of $200 million.
