The Motive Behind Music Artists Selling Their Publishing Isn't Always Money

[G_j]

https://www.forbes.com/sites/bobbyowsinski/2020/12/13/the-motive-behind-music-artists-selling-their-publishing-isnt-always-money/

The Motive Behind Music Artists Selling Their Publishing Isn’t Always Money

Over the last year we’ve seen the acquisitions of music publishing catalogs by giants Hipgnosis Songs Fund Ltd and Primary Wave, as well as sales of individual catalog most recently by Bob Dylan and Stevie Nicks. Many in the music industry are taken back by the prices being paid, and some are questioning the motive behind many artists desire to sell what may be their most cherished asset.

t’s true that we may be in a publishing bubble and prices may never again be this high, but aging artists have other things on their minds besides their legacy – their families.

A Good Reason To Keep It

In a post to the Lefzetz Letter, publisher Randall Wixen pointed out that the steady long-term income from music publishing is sometimes overlooked when it comes to the prospect of a giant payday. “I don’t know a single person that has sold their catalog that hasn’t eventually regretted it,” he stated in the post.

After paying attorney fees and capitol gains taxes, then getting just a small 0.75% return on the windfall that sits idle in a money market fund, a catalog sale may not look so good in the hindsight of selling what is usually an appreciating asset.

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[underpants]

1. I didn't know about the Zappa family fighting.

I think it’s ridiculous for people to criticize them for doing this. When I first saw the story about Dylan I immediately thought that he’s doing it to go ahead and have the money to figure who in the family gets what. The fact that streaming has made music far less valuable didn’t hit me.

He got $300 M. After all the taxes and fees if he can give one of his kids “just” 5 or 10 M well that’s better then leaving up to possible infighting and a mess later.

Like I said I didn’t know about Zappa’s family but the one (not really music) that was an wholly hell was Kasey Kassem’s.