Katy Perry Sells Her Catalog Rights For a Whopping $225 Million To Litmus Music
For an estimated $225 million, Billboard reports that Katy Perry sold the publishing and master recording rights to her music to Litmus Music. From 2008's One of the Boys to 2020's Smile, all five of Perry's Capitol Records albums are included in the agreement. This string also contains Prism (2013), Witness (2017), and Teenage Dream (2010), Perry's massively successful effort that yielded five Number One Hot 100 songs.
Katy Perry sells her entire music catalog for $225 million 💰🤯 pic.twitter.com/HbIT3y0xmq— Daily Loud (@DailyLoud) September 19, 2023
The former president of Capitol Records, Dan McCarroll, is one of the co-founders of the music rights firm Litmus. McCarroll stated, "Katy Perry is a creative visionary who has made a major impact across music, TV, film, and philanthropy. I'm so honored to be partnering with her again and to help Litmus manage her incredible repertoire." Hank Forsyth, the co-founder further told Variety, "Katy's songs are an essential part of the global cultural fabric. We are so grateful to be working together again with such a trusted partner whose integrity shines in everything that she does."
Litmus Music was founded in August of last year with a $500 million investment from the enormous private equity company Carlyle Group with the express purpose of acquiring music catalogs. Litmus' first significant purchase was country singer Keith Urban's discography, which included 10 studio albums, a greatest hits album, and 24 singles that peaked at No. 1 on the Country charts, as reported in December 2022. More recently, in June, Litmus purchased what it calls a 'portfolio of compositions' from Benny Blanco.
Perry's achievements are also unparalleled; to this day, she is the first woman and one of only two artists to have five singles from the same album reach the top of the Hot 100. According to Billboard, Michael Jackson was the first to get this recognition. California Gurls, Firework, E.T., Last Friday Night (T.G.I.F. ), and Teenage Dream were some of Perry's most popular songs that have been included in the Litmus deal.
Perry is following in the footsteps of other popular musicians like Justin Bieber, Bruce Springsteen, Bob Dylan, Blondie, Justin Timberlake, and the Red Hot Chili Peppers. Besides, selling catalog rights was pioneered by David Bowie. Before his untimely death from liver cancer at age 69 in 2016, he cashed in on the royalties potential of his music and established himself as a businessman, too.
So, what exactly is the meaning of selling royalties? In simple words, as the owner of the copyright of a piece of music, the composer is entitled to compensation for any public performances or broadcasts of that piece. Investors are willing to pay higher prices for the rights to popular songs with the expectation of making a profit from future royalties. The owner of a song might expect to continue generating money long after the composer's death. However, the success status of the music must be maintained in order to continue receiving royalties.
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