Bringing back the hits: Mining music catalogs for gold

Traditionally, in the music industry, acts like Air Supply were as good as theirs Next to hit. But for people like Graham Russell and Russell Hitchcock of Air Supply, times are changing. In 2020, Bob Dylan sold his entire catalog to Universal Music for about $ 300 million reported. Bruce Springsteen was sold to Sony Music a year later for about $ 550 million.

Larry Mestel’s Primary Wave company has been buying music catalogs since 2006. “Can you imagine Sony without Bruce Springsteen as part of their list?” he told correspondent Kelefa Sanneh. “They would have to pay what they had to pay to keep Bruce Springsteen.”

Two years ago, Air Supply sold some of its music rights to Primary Wave. The company places hits such as “All Out of Love” on TV shows (such as “Young Sheldon”) and in commercials, such as this AAA Insurance ad:

Sanneh told Hitchcock and Russell, “It’s partly about celebrating and rewarding yourself for the music you’ve made.”

“Whereas before, if you signed a seven-album deal, they promised to take all your money for seven albums!” Russell laughed.

When asked if he remembered the first contract he signed, Hitchcock laughed, “Yeah, I think it was a blank sheet of paper with our signatures on the bottom!”

“And you can give people an idea, like now, of the big problem [Primary Wave] was it? “Sanneh asked.

“It was great,” Hitchcock replied.

“Great? We’re talking, what, seven numbers?”

“Bigger than seven.”

Hitchcock and Russell also retain the veto power over where the songs are placed, in part due to a bad soda experience., an audio ad for Dr. Pepper they made in the eighties. “It was horrible!” Russell laughed.

Mestel has bought rights from artists ranging from Smokey Robinson to Kurt Cobain. He had as an example a Converse slip with Cobain’s handwriting. Sanneh asked, “These sneakers played an important role in the development of your business, right?”

“He did,” Mestel replied. “We were the first company to put the lyrics next to the sneakers and turn the merchandise deal into a music deal, right? Because the lyrics had to be licensed.”

In 1985 Michael Jackson exceeds his former friend Paul McCartney’s bid to publish The Beatles catalog. It cost $ 47.5 million, but it was worth much more. And some people learned a simple lesson: NEVER sell your songs.

Sanneh asked Mestel, “How did you fight this stigma?”

“Well, today is easy, isn’t it? Because if a Bruce Springsteen sells or a Sting sells and a Paul Simon sells and a Bob Dylan sells, you know, that opens the floodgates. for artists in general, “he replied.

Mestel’s company now faces deep-pocket competitors such as Hipgnosis Songs Fund and Round Hill Music. The song market is maturing, and so are the singers. Mestel said, “They’re in their 70s and 80s. So artists are interested in real estate planning.”

“There are certain genres that interest you or no so interested? “

“Yeah, classic rock, urban, we do jazz, we do soul,” Mestel said. “We don’t usually do a lot of country music. We don’t see a lot of country songs in commercials.”

Air Supply love songs are no longer on the charts, but Russell Hitchcock and Graham Russell say the opportunities are limitless.

“Years and years and years ago they actually had a Durex-sponsored Formula One car,” Hitchcock said. “I said, ‘What? Condoms, you know, sponsoring an F1 car?'”

“Has there ever been a condom ad with an Air Supply song?” asked Sanneh.

“Hey, I’m done,” Russell laughed, singing, “You’re out of love! I’m so lost without you …”

For more information:

• airsupplymusic.com
• Primary wave music

Story produced by Mary Raffalli. Editor: Emanuele Secci.