Music Catalogues as Investments

Why investors paid huge sums for song catalogues of artists like Bob Dylan and Bruce Springsteen, how catalogue values are calculated, and why old songs keep earning.

Old songs have become valuable financial assets.

Big deals

Bob Dylan sold his songwriting catalogue to Universal in 2020 for a reported 300 million dollars or more.
Bruce Springsteen sold his catalogue to Sony in 2021 for a reported 500 million dollars.
Funds like Hipgnosis bought many catalogues.

Why catalogues are valuable

Streaming gives old songs steady royalty income.
Songs are used in films, ads and TikTok trends.
Copyright lasts decades after the creator’s death.

Valuation

Buyers value catalogues as multiples of annual royalty income, often 15 to 20 times or more during the boom.

Interest rates

Low interest rates made steady royalties attractive. When rates rose after 2022, catalogue values came under pressure, and Hipgnosis faced investor troubles before being sold in 2024.

India

Indian labels like Saregama earn much from old Hindi film catalogues, monetised through streaming and licensing.

The evergreen song

A 1970s Hindi film song is used in a new film, a TV ad and thousands of reels, earning its catalogue owner money decades after release.

Thinking old songs stop earning

Streaming and licensing keep catalogues earning for decades.

Key takeaways

Artists sold catalogues for hundreds of millions of dollars.
Streaming and licensing make old songs valuable.
Catalogues are valued as multiples of royalty income.
Rising interest rates pressured catalogue values.