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
These purchases are long term investments. These companies are playing an infinite game, while any individual (ie springsteen or pink floyds members) is necessarily playing a finite game. The purchases are a win-win in that way: the artists get well compensated for their catalog so they can take care of their families and the companies will sell their music long after the artists pass.
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