The following is an excerpt from the book “The Music Catalog Sales Guide”, by Silvino E. Díaz, Esq. It’s a comprehensive dealmaking guide for artists, companies, and professionals in the music industry. It discusses current trends, as well as tips on how to: organize your assets; structure your team; attract major investors; value your catalog; and prepare to sell.
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An artist may have many reasons to sell their music catalog: declining revenue, liquidity needs, investment diversification, retirement and estate planning, and market conditions.
First, declining revenue and liquidity needs arose during the COVID-19 pandemic, when countless concerts, tours, and festivals were canceled or postponed. Artists faced a significant loss of revenue—the live music industry lost over $30 billion globally in 2020 alone. This prompted many artists and rights holders to reevaluate how they monetized their music portfolios, and music catalogs emerged as highly liquid and appreciating assets.
Moreover, Spotify, Apple Music, and YouTube saw an increase in usage as lockdown audiences consumed more digital content. While live music dropped significantly, recorded music revenues grew by 7.4% globally in 2020, driven by streaming. This increased activity led to stable, and rising, royalty income from recorded music and publishing.
The result was a rush by artists to capitalize on the high valuations of music catalogs during a time of financial uncertainty. Monetizing back catalogs became a way to secure immediate financial stability, hedge against uncertain touring futures, and, in some cases, assist with estate planning.
Second, as to investment diversification, selling catalogs allows musicians to secure financial stability beyond their works and careers. The music industry is inherently volatile, but catalog sales allow artists to mitigate these risks and establish more stable, long-term financial security.
For example, OneRepublic frontman Ryan Tedder sold a majority stake in his music catalog to KKR for $200 million in January 2021, including tracks he co-wrote for artists like Beyoncé, Adele, and Paul McCartney. This move enabled him to explore ventures in real estate, startups, and other sectors.
Third, there are significant retirement and estate planning benefits to catalog sales, including avoiding inheritance disputes and taking advantage of capital gains. One example of this is Prince, who passed away in 2016 without a will, sending his estate into a legal battle over its valuation.
The absence of a will and the inherent complexities of valuing music rights resulted in a six-year probate process, during which tens of millions of dollars were expended on legal and consultancy fees. Ultimately, the estate was divided between the music company Primary Wave and Prince’s heirs. This demonstrates the importance of comprehensive estate planning to help avoid lengthy legal disputes.
In contrast, Bob Dylan sold his entire songwriting catalog to Universal Music Publishing in 2020—reportedly for $300–$500 million—meaning the value of all of his future earnings was paid at once. While he likely paid a capital gains tax rate of around 23.8%, he will no longer have to pay future annual income taxes (at a rate of 37%), gained liquidity, and simplified his affairs for himself and his heirs.
Fourth, market conditions—such as high valuations, low interest rates, and increased investor interest—can prompt artists to capitalize on their assets and maximize returns. Traditionally, catalogs sold for 8–12 times their annual revenue, but during the catalog sale boom (2019-2022), some assets were sold for 20–30 times their annual revenue. For example, in 2024, Queen sold their music catalog to Sony Music for approximately $1.27 billion, due to peak streaming popularity and the success of the 2018 biopic Bohemian Rhapsody.
What should artists ask themselves prior to selling their music catalog?
Why am I selling? The reasons for selling your music catalog might include: financial security, lifestyle changes, business reinvestment, administrative relief and avoiding future market uncertainty. Make sure that you have a clear purpose and objective for selling—once you let go of your catalog, there is no going back.
How will I use the proceeds from the sale? Are you doing any of the following: reinvesting in a business; buying a home; paying off debt; creating a retirement plan or safety net? If you don’t have a clear and aligned financial strategy, you risk turning a one-time windfall into a missed opportunity.
Do I need the money to pay for something? If you’re selling to buy a depreciating asset, like a car or personal property, that’s another red flag. If you’re selling your catalog to buy something or to pay bills, think carefully. You’re converting an income-generating asset into a one-time expenditure. Ask yourself, is what you’re buying likely to appreciate in value?
Am I looking to invest the money? Many artists sell catalogs to de-risk and expand their financial ecosystem. For example, Shakira, after selling her catalog to Hipgnosis, expanded her business portfolio and invested in health and education initiatives.
Who owns the works? Ownership can be split across: (a) master rights (typically owned by labels or artists); (b) publishing rights (divided among songwriters, publishers, and sometimes administrators); (c) performance rights (managed by PROs like ASCAP, BMI, SESAC); and (d) name, image and likeness rights. If you don’t own 100% of a song, you’re selling your share of it, and buyers must be assured of exactly what portion they’re acquiring.
Is everything cleared and registered properly? Buyers expect a clean chain of title, a clear, documented trail of ownership rights for every work in the catalog. This includes: PRO registration, song splits and co-writer agreements, work-for-hire documentation, and copyright registrations.
Are there co-authors, heirs, or co-writers who might dispute ownership? Unacknowledged collaborators or poorly drafted agreements can rear their heads during or after a sale. This can lead to costly litigation if unresolved, and even worse, can tank the catalog sale.
What is my catalog worth? When you ask what your catalog is worth, you’re really asking: How does it earn money today? Is that income stable, growing, or declining? Where is the income coming from? Without knowing what your catalog is worth, you’re essentially negotiating in the dark. This can lead to undervaluing your work.
Should I sell all of my rights, or only a portion? A 100% sale means you’re transferring all ownership, and with it, all future earnings, in exchange for a one-time payout. This may work for you if you are looking for maximum liquidity, are ready to exit the music business or want to shift to other ventures. However, a full conveyance means no more recurring royalty income, and likely no control over how your songs are used.
Would a partial sale or administration deal better suit my goals? In a partial sale, you sell a portion of your catalog while still receiving royalties and retaining some decision-making power. In an administration deal, you retain ownership, but someone else comes in to handle royalty collection, sync, and copyright enforcement.
Who is buying, and what will they do with my music? Remember, you’re not just selling songs, you’re handing over a brand, a narrative, and in many cases, your life’s work. Ask yourself: Is the buyer looking for quick profits or long-term growth? Will they aggressively license your songs for commercial use? Will your music be used in ways you’re uncomfortable with?
Is this the right time to sell? Just like with real estate or stocks, timing a sale can mean the difference between a good deal, a great deal, or a loss. Consider current market conditions. This includes broader economic signals like low interest rates and investor demand.
What documents should an artist obtain in order to sell their music catalog?
Getting ready to sell your catalog involves significant legwork even prior to going out and finding buyers. The process involves several steps that include: (a) creating an inventory of your works; (b) gathering royalty and income statements; (c) reviewing contracts and licenses; (d) verifying the copyrights; (e) confirming any co-ownership or authorship issues; and other activities.
Creating a detailed inventory of all your music assets includes: compositions and lyrics, master recordings, videos and other IP (artworks, logos, cover arts, etc.). A centralized record of all your assets helps you understand what you own and what you’re offering for sale. You want to create a master document including (a) song titles, (b) writers and ownership splits, (c) PRO registrations, (d) copyright registration numbers, (e) publishing or label agreements (if any), (f) income history, (g) lyric sheets, (h) publication history, and (i) advances and expenses received or owed.
A good second step is to review any royalty and income statements associated with those works. Royalty statements are periodic reports you receive from the entities that collect and distribute income from your music. These include, but are not limited to: (a) performance rights organizations; (b) mechanical rights collectors; (c) digital service providers (DSPs); (d) publishers and administrators; (e) sync licensing agents; (f) digital distributors; and (g) foreign societies.
Moreover, a timely audit of your royalty statements will reveal your catalog’s revenue trends and the catalog’s value.
Next, you’re going to want to take a look at all of the contracts involving your music. These include the following agreements: publishing, administration, label, distribution, synchronization and other licenses. These agreements set forth, among other things, what you actually own, what rights do others have to your works, who can collect income from them, and when these obligations expire.
Fourth, verify the copyrights to your works. Buyers want clear evidence that you own the rights to the music you’re selling, and that those rights can be legally transferred without the risk of litigation, royalty disputes, or failed monetization. This is commonly shown by providing Copyright Registration Certificates, which are the official documentation provided by the U.S. Copyright Office (and international equivalents). While creators of original works of authorship technically own those rights since the moment they create the works—pursuant to U.S. Copyright Law—a certificate is still needed to sue for copyright infringement.
Next, you must determine who, if anyone, owns the works or any rights alongside you. This is commonly referred to as “co-ownership” and/or “co-authorship”. Individual artists rarely own 100% of their catalogs—this is where split sheets and recording agreements come in. Split sheets document who contributed to a song as a writer or composer (and their respective publishers) and what percentage of ownership each party holds in a composition. Meanwhile, recording agreements clarify terms of contribution, rights, royalties, and ownership splits between collaborators in a recording. Dealing with this early on can prevent disputes that could derail the sale.
If you have questions or would like to discuss the sale or purchase of music assets, please contact EPGD Business Law in Miami, Florida, at (786) 837-6787 or email us to schedule a consultation.
EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.
