The celebrated American Rapper Eve sold her music catalog for a figure ranging between Sh3.2billion and Sh6.45 billion ($25 million and $50 million) early this year.
She handed over the publishing rights to her music collection to Olivier Chastan’s acquisition firm, Iconoclast, for a massive eight-figure deal, per Complex Magazine.
“Eve’s contributions to hip hop and popular culture are unparalleled. She’s not only a great artist but a true pioneer for women in the genre,” music executive Chastan said of the multi-million dollar deal, adding, “We are honored to help preserve and elevate her incredible legacy, ensuring that her influence continues to inspire future generations of artists and fans alike.”
Forbes reports that Eve’s mega deal is part of a broader trend in the entertainment community, with several prominent artists choosing to sell their music rights in recent years.
“These transactions highlight the growing interest in hip-hop catalogs among investors and the substantial financial opportunities they present for artistes.”
The report adds that the value of music catalogs is currently soaring, due to the influence of factors like streaming services and subscriptions.
“RZA sold a 50 per cent stake in his catalog to Hipgnosis in 2020. Similarly, Future sold a portion of his musical catalog to Influence Media Partners for a reported Sh 9.6billion ($75 million), encompassing 612 songs from 2004 to 2020.”
Hip Hop legend Dr Dre also sold his assets to Universal Music and Shamrock holding.
The deal, which was sealed for over Sh25.8 billion ($200million), included artiste royalties from N.W.A, the Hip-Hop group he helped start in the late 80s.
More artistes who have sold their music collections include American singer and songwriter Katy Perry, Canadian pop icon Justin Bieber, English singer David Bowie, French DJ David Guetta, singer and record producer Justin Timberlake and many more.
“Justin Bieber sold his catalog to Hipgnosis,” CNN Entertainment reported in January last year, adding, “The deal is valued at Sh 25.8 billion ($200 million), according to Billboard. Rolling Stone called the sale the largest of any artist of Bieber’s generation.”
Hannah Karp, Editorial Director at Billboard told the site that many artistes, at the end of 2021 had rushed to sell their rights before the Biden Administration allowed capital gains taxes to increase.
“Others, particularly artists nearing the end of their careers, opted to sell their rights for estate planning purposes.”
The World Intellectual Property Organisation (WIPO) explains how these sales affect the artistes.
“When a musician sells their catalog, it means they’re selling the rights to their songs, including the royalties paid when their music is consumed and used.”
The report adds: “When a musician sells their catalog, they are certain of the amount they will receive. Their income does not depend on the popularity of their titles over time, or on potential future crises in the music industry. The advantage for the seller is the generation of immediate income, which can be substantial depending on the popularity of the titles in the catalog being sold.”
