If it seems like these music icons are all rushing to ink deals, you’re right.
“It is a great time to sell, especially last year when capital gains taxes were going to go up under the Biden administration. Everyone was trying to sell before December 31 so it wouldn’t be taxed [as high], Bob got in under the wire like a lot of these other artists,” Hannah Karp, editorial director at Billboard told CNN. “If artists were ever going to sell their music rights, now is a great moment because they won’t get these prices forever.”
Earlier this month, it was announced that Young had sold a significant portion to his song catalog for $150 million to Hipgnosis Song Fund.
Nicks, landed a deal in November for a reported $100 million with Primary Wave for her portion of publishing rights to songs including “Edge of Seventeen” and “Landslide.”
For some artists, the decision to sell now could also be part of planning ahead for their families.
“A lot of the artists that are selling their catalogs are getting to a point in their lives where they are planning their estates, sort of planning for the future and they are at a point in their lives where it makes sense to sell their music to provide for their families,” Karp said, noting that Dylan turned 80 in May.
While not as common, some younger artists are also making catalog deals.
“If you’re a young artist and blow the big chunk of money and then you get into your older years and you don’t have any income coming in, you’ll probably regret it,” Karp said. “Owning music assets is like owning a retirement fund.”
Basically, these days good music, according to Karp, is simply good business.
“The music business is driven by streaming which is a steady and growing income source, it’s not like the old days when you put a CD on the market and it was unpredictable how many copies you would sell. subscriptions,” Karp said, adding, “Because interest rates are very low right now, investors have been looking for places to park their money that will offer higher returns than the going interest rate. As long as interest rates stay relatively low, music assets are a pretty attractive return.”