LOS ANGELES, CA – FEBRUARY 10: Eve attends the 61st Annual Grammy Awards Ceremony at Staples Center on February 10, 2019 in Los Angeles, California. (Photo by Rich Fury/Getty Images for the Recording Academy)
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Rap and hip-hop were once believed to be fads, but these genres, along with R&B, have dominated the music landscape for the past decade, and people are betting big on the future value of listening to nostalgia. . According to Music Business Worldwide, hip-hop icon Eve is currently parting ways with her music catalog in order to sign an eight-figure contract worth between $25 million and $50 million. It is said that there is. As the value of their music catalogs soars, artists like Eve are considering whether to part with their intellectual property, a decision that could have a lasting impact on their careers and legacies.
Breakdown you need to know:
Music management company Iconoclast has acquired publishing rights to the Grammy Award-winning rapper and actress’ entire catalog. The acquisition includes Eve’s entire body of work, including her groundbreaking 1999 debut album, Let There Be Eve…Ruff Ryders’ First Lady. This album was a significant milestone in Eve’s career, helping her become the third female rapper in history to reach number one on the Billboard 200. The deal also includes other hit singles and collaborations that defined Eve’s musical legacy.
“Eve’s contributions to hip-hop and pop culture are unparalleled. She is not only a great artist, but also a true pioneer for women in this genre,” said Iconoclast Founder and CEO CEO Olivier Chastain said in a statement.
Iconic catalog sales:
Eve’s catalog sale is part of a broader trend in the hip-hop community, with several prominent artists choosing to sell their music rights in recent years, Culture Banks reported. For example, RZA sold a 50% stake in his catalog to Hypnosis in 2020. Similarly, Future reportedly sold part of his music catalog, which includes 612 songs from 2004 to 2020, to Influence Media Partners for $75 million.
Dr. Dre sold his assets, including artist royalties from NWA, two solo albums, production royalties and other entities, to Universal Music and Shamrock Holdings for more than $200 million. Most recently, Metro Boomin secured a deal worth $70 million to sell part of its publishing catalog to Shamrock. These deals highlight the growing interest among investors in hip-hop catalogues, and the tremendous economic opportunities they present to artists.
However, it is worth noting that hip-hop’s share of the overall catalog sales market is still relatively small. For example, Hipgnosis, a leading catalog acquisition company, only has 1% of its portfolio value in hip-hop. This suggests that hip-hop catalog sales are likely to grow further as the hip-hop genre continues to dominate streaming platforms and global music consumption.
Valuable impact of streaming:
Streaming has become a dominant force in the music industry, changing the way music is consumed and appreciated. In 2023, global recorded music revenue increased by 10.2%. This is primarily due to paid streaming subscriptions. This growth has had a significant impact on the value of music catalogs, with streaming accounting for 62% of the average multiple of net publisher share paid for published catalogs.
The impact of streaming on catalog valuations is evident in the dramatic increase in average multiples over the past decade. From 2011 to 2021, the average catalog multiple increased from 8.6x to 20.7x. This surge coincided with streaming growing from virtually nothing to 65% of global recorded music revenue.
Expectations for future distribution by Music Licensing Collective and the development of new digital sources such as TikTok are contributing significantly to positive growth. Additionally, the average multiple for private music publishing catalogs increased from 16.7x in 2022 to 17.2x the pure publishers’ share in 2023.
As the market moves toward more niche-focused funds, investors are seeking catalogs that may be undervalued in genres such as EDM, Latin music, and Asian markets. This diversification has spread the market far and wide, with more transactions taking place across Europe, South Korea, and Latin America. Focusing on these demographics has already proven to be extremely valuable, as Hipgnosis sold its hip-hop music catalog with 29 Latin artists, including Shakira, for $465 million to pay off debt. Masu.
Situational awareness:
Trends in music catalog sales continue to reshape the music industry landscape, presenting both opportunities and challenges for artists like Eve. Looking ahead, the music catalog market is showing signs of stability and growth potential, and is expected to maintain stable multiples in the coming years.
