Analysis: Justin Bieber is the latest music superstar to cash in on a red-hot market
New York CNN —Music superstars are cashing in on a red-hot market.
Justin Bieber on Tuesday joined a growing list of iconic singers who have struck mammoth deals to sell their music catalogs — or, in some cases, their masters — for hundreds of millions of dollars.
In the last few years, generational stars have inked nine-figure deals to hand over the rights to their catalogs.
And, younger artists have taken part in the action too, with singers such as John Legend and Iggy Azalea striking deals.
Now, services like Spotify and Apple Music have revolutionized the music industry.
If we are living our best life, we are doing it to a soundtrack of music.
And, equally, if we are being challenged, whether through a pandemic or inflation … we take comfort and escape with these songs.
Short form video apps have accelerated the discovery of music as they send older tracks viral, driving streams and prompting spikes in downloads.
Unlike legacy companies, these new businesses don’t have a long track record managing music.
The labels, he said, often have a disparate set of goals, including creating new hits, which could distract them from the singular mission of managing older music.
And, Mercuriadis noted, they manage massive libraries — not a narrower library of highly concentrated hits.
“We are fully focused,” he said, “on managing the proven songs of the past.”