Warner Music has agreed to buy David Guetta’s recorded music catalog, reaching an agreement with the musician worth more than $ 100m, according to people familiar with the matter, in the latest example of the growing market for music rights while the sector grows again.
The 53-year-old French DJ and producer after hits such as “Titanium” and “Play Hard” is one of the youngest musicians to meet the growing demand for music rights from private equity, record labels and specialty funds such as and Hipgnosis.
Warner will acquire Guetta’s two-decade-old recorded music catalog. The agreement also included an agreement for future registrations. The companies did not disclose terms, but the price was more than $ 100m, according to a person familiar with the matter.
“A lot of people came together to express interest in David’s catalog,” said Jean-Charles Carré, Guetta’s director. Guetta said the agreement would help him “work on my vast catalog and continue to build my career.”
Musicians included Bob Dylan, Blondie and Stevie Nicks have become willing sellers of their songwriting catalogs amid rising ratings and a lack of touring revenue during the pandemic. U frenzy dealmaking it has effectively doubled the value of the song’s copyright in the last five years.
But Guetta, who has sold 50 million albums during his career, is unique in selling his own recordings, which are managed separately from the underlying composition of a song. Most artists do not have their own recorded music, which they typically give to records.
In recent years, artists have rebelled against this system, in particular Taylor Swift, after their records were sold to financial buyers. Swift started releasing new versions of his old albums in an attempt to devalue his old catalog and ruin the deal.
Thanks to the growth of streaming, revenue, the music sector has grown for six consecutive years, accounting for 7.4 percent of last year’s growth to $ 21.6 billion, according to the industry group. IFPI. Paid streaming has increased the value of music rights and given older songs a new lease.
Warner Music, the third-largest label, which is behind artists including Lizzo and Ed Sheeran, reported net income of $ 117 million for $ 1.3 billion in revenue in the quarter to the end of March. The group it has become public last year, raising $ 1.9 billion for owner Leonard Blavatnik. The company’s shares have fallen 7 percent this year, to $ 17.6 billion.