Hi everyone,

First edition of this newsletter focused around music. The objective is to share with you the latest music industry news, insights of the industry and album releases.

Hope you’ll enjoy and learn something!

📰 Music Industry News

Why do major artists sell their catalogues?

Have you ever wondered what goes on behind the scenes when musicians sell their music catalogs? Earlier this year, Justin Bieber made headlines by selling his for a whopping $280 million to Hipgnosis, a major player in the world of music rights investment. But what does this actually mean? What makes music catalogs so valuable, and why are investment firms willing to spend so much money on them? In this newsletter, we'll delve into the fascinating world of music catalogues and explore why they've become such a hot topic in recent years.

What types of music rights?

There are two main types of rights: publishing rights and recording rights.

Publishing rights pertain to the ownership of the musical composition, including the lyrics, melodies, and arrangements of a song, as well as the copyright, royalties, and licensing rights for various uses. While streaming services allocate a smaller portion of the cake to publishing rights, other outlets such as TV, radio, and venues require payment. The more a song is played, the more the songwriter and publisher receive from organizations like Sacem (or other PROs). Publishing rights are also crucial when it comes to covers or remixes.

Recording rights, on the other hand, are the songs recordings - the actual songs - and are often owned by the label rather than the artists. Investment firms are particularly interested in publishing rights as they offer long-term revenue streams from multiple sources. For instance, licensing fees can generate revenues from the use of compositions in movies, TV shows, and advertisements.

An attractive investment.

In recent years, music catalogues have become an increasingly popular investment opportunity. Round Hill Music, the first firm dedicated to buying music catalogues, was founded in 2010, and since then, at least 10-15 other firms have entered the market. Even major labels like Universal, Sony, and Warner are involved, and investment funds like BlackRock have also shown interest.

There are several reasons why music catalogues are attractive investments. First, the music market has been growing thanks to streaming, which has created new revenue streams for publishers and rights holders. Second, the revenue from publishing rights is relatively inelastic to economic downturns. In other words, people continue to listen to music and their favorite artists even during times of recession, which helps to protect the value of music catalogues.

Finally, some catalogues never age, meaning that their songs remain popular and in demand for years, even decades, after they were first released. This is particularly true for classic songs from established artists, which continue to generate revenue through licensing fees for use in movies, TV shows, and advertisements.

Huge deals - major artists.

Investment firms have a preference for buying music catalogues from artists like Bob Dylan, whose discography has proven to be evergreen and can provide a predictable return on investment. This is because older songs tend to generate a steady stream of income from streams and radio plays each year, unlike newer hits that can have limited returns after a few years. Initially, the big catalogues were selling for 10 to 15 times their annual earnings. However, the competition in the market has made deals more attractive for artists. For example, Hipgnosis, the largest fund in this field who owns catalogues from Shakira or Fleetwood Mac, recently bought catalogues from for almost 20 times their annual earnings. This presents a unique opportunity for older and major artists to cash in, invest in other ventures, or pass the money down to their children.

Is it just a trend?

Music catalogues are still viewed as an attractive investment for many firms, thanks to the strong demand for music and their low correlation with other asset classes. However, with the recent record-high valuations for major artists' catalogues, investment firms must offer even more money than before to acquire them, making it a challenge to convince artists to sell.

While older artists may find it easier to sell their catalogues and prepare their legacy, it's harder to predict for younger superstars. Although some artists may choose to sell their catalogues to benefit from record-high valuations, doing so comes with risks. When artists sell their publishing rights, they give up control over how their music is used and may not be able to make important decisions about their music in the future. This can contradict the common celebration of artists who own their masters and control their rights.

There are also a few startups that offer to the public the opportunity to invest in music catalogs, but the market is still relatively new and small. These startups bet on the idea that people want to diversify their investment portfolios by buying a portion of a catalogue of an artist. Along with actors such as Royalty Exchange, which is an online platform where investors can buy and sell music royalties, new NFT music startups are also attempting to capitalise on this trend. These startups aim to provide a direct avenue for artists to sell some songs to their fans and establish a closer connection with their audience. As the market evolves, it will be interesting to see how these startups and traditional players shape the future of the music investment landscape.

Recommended Album Releases

Lil Yachty - Let’s Start Here

Lil Yachty really switched things up on his latest album - it's a departure from his previous work and shows a whole new side of his artistry. The album has a unique blend of psychedelic rock and pop, and features collaborations with big names like Mac deMarco, Daniel Ceasar, and Foushée. With the same team of producers on most tracks, the result is a cohesive and exciting listening experience that could be a game-changer for Lil Yachty's career.

Favorite Track: sAy sOMETHINg

Dina Ögon - Oas

The Swedish indie pop band dropped their second album in just two years. Dubbed as retropop with soul, pop and world music flavors, Dina Ögon brings forth another enjoyable record. Critics love it for its mellow and melodious vibe. The band caught Tyler, The Creator's attention last year, which helped them gain popularity and the group even had a sold-out tour in Sweden. With all these achievements, we're excited to see this emerging group flourish.

Favorite Track: Mormor

Hamza - Sincèrement

Hamza, has just released his latest album, titled "Sincèrement", the album features collaborations with international artists, making it his most ambitious project to date. Hamza’s diverse musical influences shine through on this album, ranging from R&B, with an Usher sample, to influences from Young Thug and Drake, and even afrobeat with CKay. The album's name is even a nod to Drake's album "Honestly, Nevermind", adding to its allure and his ambition. Fans of Hamza's previous work are in for a treat, as they will surely find tracks that resonate with them. "Sincèrement" is already strong contender for the French Rap Album of the Year, and it's clear that Hamza doesn't disappoint with this impressive release.

Favorite Track: Free YSL

Thank you for reading the first edition, you’ll find on the link bellow a playlist that will be regularly updated with my favorite tracks of the last few weeks.

See you soon for the next edition 😃