I just read that Sony bought the rights to Pink Floyd’s catalog for something like $400 million. They also bought Bruce Springsteen’s catalog for around $500 million. That’s close to $1 billion for just two artists. There’s a whole bunch of other artists who are also getting bought out which brings the grand total to billions of dollars.
How are these companies getting the money to pay these crazy sums?
What is their plan to make that money back? Commercials and film placement?
Seems like you’d have to wait a veeeery long time to recoup these investments.
In: Economics
Despite what they want you to believe, companies aren’t human. Musicians are. So someone who isn’t the rolling stones or Aerosmith knows they’re gonna die eventually so it’s better to get the lump sum up front, instead of that slow trickle over years. Companies however, if managed properly, can last hundreds of years, so they’re much better suited to leverage that property in all the ways it sees fit to generate revenue in the form of licensing and royalties. Esp if they have a department for doing so, and they have a plethora of catalogs to “sell” to customers.
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