Justin Bieber sells rights to his entire back catalogue of music for $200M
Justin Bieber has sold the rights to his entire back catalogue of music to Hipgnosis Song Management.
The music rights investment company confirmed to Billboard on Tuesday that it has closed a deal to buy 100% of the Canadian pop star’s publishing and artist royalties from his master recordings.
Valued at just over $200 million, the deal includes the rights to all of Bieber’s back catalogue — 290 songs released before the end of 2021 — which include some of his greatest hits like “Baby,” “Sorry,” “Despacito,” and “What Do You Mean.”
Welcome to the Hipgnosis family @justinbieber ❤️ pic.twitter.com/q9KIUtAomM
— Hipgnosis Songs (@HipgnosisSongs) January 24, 2023
“Justin is truly a once in a generation artist and that is reflected and acknowledged by the magnitude of this deal,” the Stratford, Ontario, singer’s longtime manager, Scooter Braun, said in a statement to CNN.
“For 15 years I have been grateful to witness this journey and today I am happy for all those involved. Justin’s greatness is just beginning.”
Billboard says this is the largest sale of rights for any artist of Bieber’s generation.
So, why would a hit artist like Bieber sell all of his music?
According to Otto Law, when a musician decides to sell all or part of their catalogue, they’re “trading smaller paydays for a more considerable lump sum.”
The law firm gives the example of David Bowie’s estate selling his entire music catalogue to Warner Chappell Music.
“Cases like this typically mean a significant payout for the seller (Bowie’s estate) and substantial benefits for the buyer,” reads an explainer on the firm’s site.
In Hipgnosis’ case, they receive Bieber’s publishing copyrights, which include his writer’s share; the musician’s share of the royalties from his master recordings (owned by Universal Music Group); and a royalty known as neighbouring rights, which is when a song is played publicly — like in a store or a cafe.
Otto Law adds that musicians usually choose to sell their catalogue when there’s less demand for major revenue streams like live performances.
“In these cases, the larger payout for the catalog can be more helpful than waiting to see if there will be demand for a reunion tour, hologram or otherwise,” reads the site.
And Bieber isn’t the only artist that has made moves to sell catalogues. Bruce Springsteen, Nelly Furtado, Neil Diamond, Stevie Nicks, and Shakira are just a few big artists that have chosen to sell their back catalogues to song management companies in recent years.
This news comes after Bieber’s turbulent summer tour that he ended up cancelling to prioritize his health.
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