S Poddar
Legendary British rock band Pink Floyd, a name to have instant classics such as Wish You Were Here and Money, has finally confirmed a deal with Sony to sell its massive portfolio of music catalog rights for around $400 million. This deal will not only include the recorded music but also a band’s name and likeness, giving the house rights over merchandises and possible movie and television series adaptations.
According to two sources in the matter, this marked a significant moment in what now looks like a steadily continuing trend of sales in vintage rock music, at a time of renewed interest and in improved value terms in the music produced by heritage artists. “Heritage artists” include all those who, through their end products such as music, continue to inspire new generations, predominantly through the sonic streams and bibliographic inclusions in contemporary media.
This otherwise complex realm of music rights divides into two types of copyrights: one for the song itself, and another for the recordings, or master copies. Pink Floyd’s new deal addresses only the rights to its recorded material, but its rights in the song writing remain with the group. It is exactly this division of rights that makes it possible for them to now retain ownership over their original compositions and create a source of income through their recordings.
This deal will mark the end to a long, drawn-out process of negotiations and in-house fights within the band. The members have faced various controversies in the past, such as argumentations about the tax impacts of this deal and some of the comments made by Roger Waters. Last year, a sale in 2022 generated considerable interest from bidders like Hipgnosis, Warner Music, and BMG, but did not come to fruition due to ongoing contentions from other band members.
Waters and guitarist David Gilmour have clashed for over four decades, at times imperilling the group’s finances. The other living member is drummer Nick Mason, who is also involved in these power plays. Neither Sony nor Gilmour would comment on the agreement, so Waters was unavailable to discuss the matter further.
The appeal of heritage artists like Pink Floyd is growing very fast, mainly among the youth. This is because their music is now easily available through streaming and due to its almost exclusive use in popular television shows and films. The big labels, like Sony, are seeking newer additions to their catalogs so they can get even more value from these by constantly licensing them across all forms of media-including streaming services, gaming, and the rest.
While music catalog prices moderate somewhat from their peaks in 2021 and 2022, demand for such high-value assets as the Pink Floyd music is still strong. A key step in supporting their music buys was taken in July when private equity firm Apollo promised up to $700 million to Sony, indicating that investor interest in these highly sought-after catalogs is very much alive and well.
As Pink Floyd becomes another beloved artist to cash in on music rights in recent times, the sale represents more than a moment of pure financial gain. Instead, it is an important moment in the face of a changing music industry, reflecting a new landscape for the growth and development of iconic artists solidifying legacies even as their work continues to find inspirational new generations of listeners around the globe.
