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
First – have a lot of money
Seconds – if you don’t have a lot of money; have the ability to secure a loan
Sony has a crap ton of money
Just like any asset; spend a lot of money on asset (music). Then collect future royalties/sales for the next 100 years. At some point turn the cost of purchase into profit
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