BlackRock investment management company and Warner Music Group have made a huge investment in female and diverse artists according to The Wall Street Journal, putting $750 million into a fund dedicated to collecting rights catalogs from such artists in what the Journal calls a novel approach to the current trend of funds buying up artists’ catalogs.
While many of those efforts have focused on collecting older artists’ catalogs such as Bob Dylan and Bruce Springsteen — both of whom recently sold their catalogs for huge payouts — the new fund is buying up music rights from artists who are still actively writing, particularly women, who want to maintain stakes in their catalogs. So far, $300 has been paid out for 20 catalogs, including those of Tainy, the reggaeton star who has worked with Bad Bunny and J Balvin, the Stereotypes, who co-wrote “24K Magic” with Bruno Mars, and popstar Jessie Reyez.
Some commentators, according to WSJ, consider these investments higher risk; while older catalogs have proven to be safe bets — think about how many songs from the ’60s, ’70s, and ’80s are still being used in movies, let alone other commercial uses — newer music isn’t as sure to still be popular in 20 or 30 years. However, some artists have maintained their popularity, so some investors like BlackRock are willing to go all-in as newer music finds more use in streaming, video games, fitness apps, and social media.
Meanwhile, by allowing songwriters to maintain stakes in their own work, it gives them the incentive to not only accept investors’ terms but keep actively promoting their works to keep the checks rolling in.
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