The music licensing industry is on the verge of experiencing massive growth in 2023. This can be attributed to a number of factors, including the recent trend of well-known music artists selling their catalogs to music publishers and record labels.
One notable example is Bob Dylan, who sold 100% of his music publishing to Universal Music Group and all of his sound recording rights to Sony Music. This move is indicative of a larger trend of artists looking to monetize their work in new and innovative ways, and the music licensing industry is poised to benefit as a result.
Another example is Neil Young, who sold 50% of his music catalog to Hipgnosis Songs Fund. This trend is not limited to established artists, as newer artists are also looking to enter the music licensing industry as a way to monetize their work.
In fact over 100 music artists sold their song catalogs to various music groups between 2021 and 2022.
The increased demand for music in various mediums, such as film, television, and commercials. As more content is created, there is a greater need for licensed music to accompany it. This demand is only expected to increase as streaming services continue to grow in popularity, leading to more opportunities for music licensing.
Another area where the music licensing industry is seeing significant growth is in the podcast space. In the past year, well-known entertainment brands such as Paramount Audio and Sony Music have released original scripted podcasts, further driving interest in the use of licensed music in podcasts. As podcasts continue to gain popularity, it is expected that there will be an increasing demand for licensed music to be used in this medium. This trend is likely to contribute to the overall growth of the music licensing industry in the coming year.
In addition to the demand for licensed music, advances in technology are also contributing to the growth of the music licensing industry. The availability of digital platforms and tools has made it easier for artists to license their music and for potential licensees to find and license the music they need.
As the industry sees this growth in the coming year, it will be interesting to see how this increased inventory of well-known music rights will affect sync licensing rates. With more artists and music catalogs entering the market, there may be increased competition for sync licensing opportunities. However, the increasing demand for music in various mediums, coupled with the popularity of live music events, suggests that there will be plenty of opportunities for artists to license their music and for potential licensees to secure the rights they need.