The Rise of Selling Music Catalogs 

In the last few years, selling music catalogs has gone from a behind-the-scenes business deal to headline news. Bob Dylan, Katy Perry, Justin Bieber, Justin Timberlake and other household names cashing out on their biggest hits. But what’s actually being sold here? And why now? This isn’t just some music industry trend, it’s a full-blown shift in how artists are dealing with record deals, music ownership, music selling, money, and legacy. Whether it’s about financial security, walking away from admin headaches, or reclaiming creative control later, music catalogs have become major power players in the business. Whether you're an indie artist, a fan, or just nosy (hi 👋), you’ll want in on this.

Here’s what we’re diving into:

1. What does it mean when artists sell their music catalog? 
   
   
2. Why do artists sell their music catalogs?
   
   
3. What happens when you sell your music catalog?
   
   
4. Who buys artists’ catalogs?
   
   
5. Why do companies buy music catalogs from artists?
   
   
6. Why are some artists buying back their catalogs?
   
   
7. FAQs
   
   
8. Our Final Thoughts
   
   

What does it mean when artists sell their music catalog?

When an artist sells their music catalog, they're handing over the rights to their music, usually the recordings (masters), the songwriting rights (publishing), or both. These rights earn money anytime a song is streamed, played on the radio, licensed for film/TV, or used commercially.

What even is a music catalog?

When it comes to music, there are two main types of copyrights involved:

• Master rights: the original sound recordings)
• Publishing rights: the underlying composition, like lyrics and melody.

A catalog deal might involve either one , or both being sold. 

So when a music catalog is getting sold, it means that rights are being transferred like so:

• A percentage of their rights (partial ownership) or the full rights (100% transfer).
• Rights to future royalties (ongoing income) or just existing assets (songs already released).
• Bundled deals that cover both masters and publishing, depending on the agreement.

Depending on the agreement, artists can sell just their share, or full ownership of these rights.

Is it only the sale of past work?

Not always. While most artists sell their existing catalog (the work they’ve already released), some deals include future releases too. These are called forward-included deals, where basically, the buyer invests in both what’s already out and what’s coming next.

That said, the majority of these big-money catalog deals focus on past hits, i.e., music that already has a proven track record and steady revenue.

But then, the question arises-

Why do artists sell their music catalogs?

Artists don’t just wake up and sell their life’s work for fun. There are some real reasons behind these big moves. And it’s not always about cashing out (though, yes, the payouts are wild).

1. Financial security 

Selling music record catalogs can mean a huge lump sum upfront—sometimes hundreds of millions of dollars. For artists, that can mean:

• Paying off debt
• Funding future projects without label interference
• Building generational wealth
• Protecting against uncertain income (like during touring breaks or pandemics)
   

2. Tax Advantages

In the U.S., selling a catalog is often taxed as capital gains (a lower rate) instead of ordinary income. This makes it a smart financial play, especially for legacy artists looking to secure their estate.

3. They Don't Want To Manage It Anymore

Managing a catalog takes work. From licensing deals to royalty tracking, it’s an ongoing business operation. Retired or semi-retired artists often don’t want to deal with that anymore—and would rather pass the responsibility to a buyer who knows how to maximize it.

Plus, it frees them up from making business decisions about their past work and lets them focus on enjoying their legacy.

4. Simplifying Legacy Planning

Some older artists choose to sell to avoid messy inheritance issues. Instead of passing down rights and royalty structures, they pass down cash. Clean, simple, and stable.

5. Clean Slates

Younger artists sometimes sell to start fresh. Getting a chunk of change early allows them to own future work, fund side ventures, or even take a break from the spotlight.

What happens when you sell your music catalog?

When an artist sells their music catalog, they're trading long-term control and royalties for a lump sum upfront. Now that comes with its own pros and cons. Here’s how that breaks down: 

Who buys artists’ catalogs?

From billion-dollar firms to music publishers (to even hedge funds⁉️), the buyers in the music catalog game come from all corners. Here’s who’s at the buying end:

1. Investment Firms & Catalog Funds

Big players like Hipgnosis, Primary Wave, and Round Hill invest billions into music catalogs, treating them like real estate—assets that generate steady income.

A good example of this would be Hipgnosis buying the rights to songs by Shakira, Neil Young, and Justin Timberlake.

2. Major Labels & Publishers

Labels like Universal Music Group and publishers like Sony ATV sometimes buy back rights they originally signed away. 

In 2020, for example, Bob Dylan sold his entire songwriting catalog to Universal.

3. Brands and Media Companies

Some catalogs end up in the hands of entertainment giants, who use the music across their platforms, think Netflix, Disney, or even gaming companies. Owning music outright means cheaper licensing internally.

4. Private Equity and Hedge Funds

These guys aren’t traditionally in the music business—but they've entered it now. Music is considered a “non-correlated asset,” meaning selling music records performs steadily even when the stock market is shaky.

An example of this would be KKR teaming up with BMG to buy the ZZ Top catalog in 2021.

Why do companies buy music catalogs from artists?

To a company, a music catalog isn’t just art, it’s a money machine. Here are a few of the many reasons that make catalogs so attractive to buyers:

1. Steady Income from Royalties

Every time a song gets streamed, played on the radio, or licensed for a show, it generates revenue. For companies, that’s predictable cash flow. These royalties can include royalties generated from streaming on Spotify, royalties from streaming on Apple Music or other streaming services, royalties generated through performances (performance royalties), amongst more. 

2. Long-Term Asset Growth

Music catalogs can grow in value over time, especially if the artist’s popularity holds or surges. Buying now can mean bigger returns later. Stonks!

3. Sync Licensing Opportunities

Sync Licensing could be an expensive affair. For brands and media companies buying the catalog would mean cheaper licensing internally, and for other types of buyers, again, it’s a solid money making opportunity, especially with the catalogs of famous artists. Icing on the cake, in a situation like this, would be if the catalog has unreleased music from the said famous artist!

4. Data-Driven Monetization

With access to better data and marketing tools, companies believe they can maximize a catalog’s value in ways artists often can’t alone, especially when it comes to music selling through syncs and targeted licensing.

5. Strategic Business Move

Acquiring a catalog can help companies expand their music portfolio, attract investors, or strengthen their presence in certain genres.

All about artists selling their catalog might bring one to another question–

Why are some artists buying back their catalogs?

While selling music catalogs is more than common, lately, artists buying back their music catalogs has been in the news. Now, why would an artist want to do that? Here are a few reasons: 

1. To Reclaim Creative Control

Owning your music means having the final say on where and how it’s used. No licensing to car ads you didn’t approve.

The most prominent example of this would be Taylor Swift taking matters into her own hands when masters of 6 of her albums were sold without her consent. Although she didn’t buy them back, she managed to re-record new versions of them. Thanks to Taylor Swift’s genius marketing and aggressively-loyal fandom, swifties everywhere understood the assignment, immediately. These “Taylor’s version” albums ended up being way more successful than the original and succeeded in flipping the script.

Based on this, a lot of record labels have started tweaking their clauses to prohibit re-recording till up to 30-years of the original release!

2. To Own Future Revenue

Instead of watching others profit off their work, artists who buy back their catalogs can earn directly from streaming, licensing, and sales.

Frank Ocean is rumored to have negotiated control over his catalog after parting ways with his label around 2016.

3. To Prevent Misuse

Owning your catalog gives you the power to stop your music from being used in ways that don’t align with your image, politics, or values.

And for lor legacy artists especially, image and reputation matter more than ever, which is why they would want to own rights to their music entirely.

FAQs

1. What does it mean when an artist sells their masters?

It means the artist sells the ownership rights to the original recordings of their music (and not composition or lyrics), giving control to the buyer over how the music is used, licensed, and monetized.

2. Who owns the largest music catalog?

In 2025, Sony Music Publishing likely owns the largest music catalog, having acquired significant assets from EMI Music Publishing and other major deals.

3. Who has the highest selling music catalog?

Queen holds the record for the highest selling music catalog sale, with their catalog and rights being sold to Sony Music for $1.27 billion.

4. Does Rihanna own her catalog?

Rihanna owns the rights to the masters of all her music catalog. She acquired these rights in 2015.

5. Who owns most of Taylor Swift’s music?

Under her new record deal with Universal Music Group, she'd now own whatever masters she produced (including the re-recordings). Because she is usually the main songwriter, she would already have rights to the musical works.

Our Final Thoughts

Selling your catalog used to be the last stop. Now? It’s just another move on the board. Whether it's about financial freedom, dodging admin, or just calling checkmate on a system that never played fair—selling music records catalog is no longer just a retirement plan, it could be a start of many new feats. But like any deal, what you gain in cash, you give up in control. The bottom line? In an industry built on rights and royalties, knowing when to sell and when to hold, is everything.

We at GreaseRelease, have a bunch of curators on our network who are looking for new & exciting music to push on their massive playlists. If you make music and want to reach a wider audience, check out our submission platform and get a chance to reach millions of listeners! Submit your tracks now!