Socialites get into this: Katy Perry has reportedly joined the growing list of musicians who have sold their catalog for a pretty penny.
In a significant move within the music industry, the pop superstar recently sold her music catalog to Litmus Music for a whopping $225 million, according to Billboard. This deal marks an exciting chapter for both Perry and the music industry as a whole, as it showcases the increasing value of music catalogs and the potential for lucrative investments in the ever-evolving world of music.
Litmus Music, a catalog rights company backed by private-equity giant Carlyle Group LP, reportedly acquired the rights to five of Perry’s hit studio albums that were released under Capitol Records, including her Grammy-nominated Teenage Dream.
Katy Perry’s decision to sell her music catalog to Litmus Music comes as no surprise, considering the skyrocketing prices of music rights and the immense value attached to established artists’ catalogs. Perry’s catalog sale, which was finalized earlier this year, also comes right after other major deals like Justin Bieber who sold his catalog in a $200-million sale to Hipgnosis Songs Capital.
Per the outlet, it seems like the “Roar” singer’s work is in good hands as her professional relationship with Dan McCarroll, Litmus co-founder and chief creative officer, dates back to 2010.
“Katy Perry is a creative visionary who has made a major impact across music, TV, film, and philanthropy,” McCarroll said. “I’m so honored to be partnering with her again and to help Litmus manage her incredible repertoire,” Billboard reports.
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What Happens What An Artist Sells Their Music Catalog?
When an artist sells their music catalog, it means that they are transferring the rights to their collection of songs to another entity, typically a music publisher or a record label.
While there are several implications why one would do this, there’s also a lot of benefits that come with it.
The artist receives a large upfront payment for selling their catalog, which can provide immediate financial stability or fund future creative projects. Depending on the terms of the sale, the artist may retain creative control over their music, meaning they can still perform and record their songs, but won’t really own the rights to the music itself.
As for the new owner of the catalog, they will collect all future royalties generated by the songs, including streaming, downloads, radio plays, and licensing fees. It’s important to note that every music catalog sale is unique, and the terms and conditions can vary. Artists often consider many factors before making this decision, including financial considerations, artistic freedom, and long-term career goals.
Perry has not yet publicly commented on the big news. Until then, let us know if you think this is a good move for the superstar by commenting below!