Musicians sell copyright: Lucrative deals mark a new era of music consumption

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  Quantumrun Foresight
• March 29, 2022

Insight summary

The music world is experiencing a seismic shift as artists sell their music catalogs to recording studios, and streaming services become a dominant force in how people consume music. This trend, accelerated by the COVID-19 pandemic, has led to intense competition among music labels, changes in consumer attitudes towards music, and a broadening of global access to classic songs. From the resurgence of timeless music in media to the potential environmental impact of streaming, the transformation of the music industry is reshaping cultural, economic, and social landscapes in profound ways.

Musicians sell copyright context

Musicians like Bob Dylan, Stevie Nicks, and the estates of John Lennon have sold large swaths of their music catalogs to recording studios, giving them all future income from their music. These deals began to increase in frequency and size during the COVID-19 pandemic, offering artists very lucrative contracts worth millions. Many companies consider music catalogs a stable investment, particularly due to the rise of music streaming apps like Spotify and Apple Music. 

Before the pandemic, music consumption trends already forecasted an increase in the usage of music streaming services. The pandemic accelerated this trend, with over 400 million paying subscribers signed up to the top 10 music streaming services collectively (2021). 

Companies like Hipgnosis have bought the rights to over 65,000 sounds, including Neil Young and Beyoncé. Since March 2020, the company has doubled its revenue, raised its annual dividend target by five percent, and recorded an 18 percent increase in streaming income. In addition, experts believe that many older artists are selling their catalogs to fortify their estate planning, making songs older than a decade 60 percent of Hipgnosis’ music catalog. 

Disruptive impact 

With experts predicting the number of streamer users to rise to two billion, especially in emerging markets, music labels may engage in intense competition to acquire music catalogs, particularly those of artists with significant cultural impact. This trend can lead to a more diverse and accessible music landscape, allowing new artists to emerge and established ones to reach broader audiences. Governments and regulatory bodies may need to closely monitor these acquisitions to ensure fair competition and protect consumer interests.

Shifting consumer attitudes towards music, from viewing it as a luxury to considering it an essential part of everyday life, will likely have far-reaching implications. The low cost and easy accessibility of streaming services forecast a rise in paid music consumption, which can further decrease illegal music downloads. This trend can lead to increased revenue for artists and music companies, while also providing governments with a new source of taxable income. Education systems may also integrate music more deeply into curricula, recognizing its importance in daily life, and promoting responsible consumption.

For individuals, the increased accessibility to diverse music can enhance cultural awareness and personal enrichment. Companies, especially those in emerging markets, may find new avenues for growth and collaboration with global music labels. Meanwhile, governments may need to adapt policies to protect intellectual property rights, ensure fair pricing, and consider the social implications of music becoming a more integral part of people's lives. 

Implications of musicians selling copyright

Wider implications of musicians selling copyright may include: 

• An expansion of music catalogs on streaming services, allowing unprecedented global access to classic songs, leading to a more inclusive and diverse musical culture that transcends geographical boundaries.


• An increase in the use of classic songs in film, television, and advertising mediums, leading to a resurgence in popularity of timeless music and a potential shift in the creative direction of media content.


• A new generation of audiences being exposed to classic songs, potentially leading to a new wave of reunion or comeback tours of established acts, fostering intergenerational connections and revitalizing live music scenes.


• A shift towards subscription-based models in the music industry, influencing other entertainment sectors to adopt similar strategies.


• The development of new technologies to enhance music streaming experiences, leading to personalized and interactive listening experiences that cater to individual preferences and needs.


• An increase in local governments partnering with streaming services to promote regional music and culture, leading to a boost in tourism and global recognition of local talent.


• A potential rise in energy consumption due to the growth of data centers required for streaming services, leading to increased scrutiny of the industry's environmental impact and a push for more sustainable practices.


• A potential decline in traditional music mediums such as CDs and vinyl, leading to a change in how music is collected and appreciated.

Questions to consider

• Do you think musicians selling copyright will have any impact on people’s consumption of their work? 


• Do you believe streaming services will make traditional ways of music consumption obsolete? 


• Why do you think consumers have by and large shifted away from illegal downloads of music?