Insights #019: Sony Music Set To Acquire Queen's Music Catalog

Sony Music is expected to take control of the legendary rock band Queen's UK-based companies and their extensive music catalog. This purchase, reportedly valued at $1.2 billion, shows Sony's strategic efforts to strengthen its portfolio with one of the most iconic and profitable music catalogs in history.

Sony Music's intent to purchase Queen's music catalog is a testament to the popularity and financial viability of the band's work. According to Music Business Worldwide, Sony is in the final stages of finalizing the acquisition, which involves taking control of Queen's UK-based entities. This includes Queen Productions Limited, which manages the band's intellectual property and rights. The deal is expected to be a landmark transaction in the music industry, reflecting the high valuation and market demand for classic rock catalogs. Queen's catalog includes some of the most influential songs in rock history, such as "Bohemian Rhapsody," "We Will Rock You," and "Another One Bites the Dust." These tracks have defined generations and continued to generate substantial revenue through streaming, licensing, and various other channels.

Sony’s pursuit of Queen’s catalog aligns with its recent acquisition strategy, emphasizing the value of timeless music. In recent years, Sony has secured catalogs from artists like Bob Dylan and Bruce Springsteen, demonstrating a clear focus on acquiring legacy music assets with enduring popularity. This approach aligns with Sony’s business model, which seeks to bolster its portfolio with proven, revenue-generating music. This focus on obtaining high-value, enduring music assets has proven successful, as evident by the rising streams and continued financial performance of Queen’s music in recent years.

The streams for Queen’s music have been rising over the last couple of years. According to Spotify data, “As of June 2024, Queen was the 43rd most-streamed account on Spotify, up from 49th place a year earlier and 44th place two years earlier. The band had 52.61 million monthly listeners, up from 48.45 million a year earlier to 40.3 million two years earlier.” This rise in popularity is shown as the company’s revenue for the fiscal year concluded on September 30, 2023, was recorded at GBP 39.47 million. That is equivalent to USD 49.1 million in 2023, assuming an average exchange rate.

The $1.2 billion valuation highlights the interest in Queen’s catalog. As reported by Royalty Exchange, the acquisition is part of Sony's broader strategy to consolidate its position in the music industry by owning high-value catalogs. This strategy is not unique to Sony; it reflects a wider trend among major music companies to secure valuable music rights, which offer a steady stream of income and long-term financial stability. Acquiring Queen's catalog will enhance Sony's ability to generate revenue from various streams, including digital streaming platforms, physical sales, and licensing for movies, TV shows, commercials, and even video games. Additionally, owning such a prestigious catalog can boost Sony's bargaining power in negotiations with digital service providers and other stakeholders in the music industry.

Sony Music's purchase of Queen's music catalog represents a significant move to fortify its market presence and secure a steady income from one of the most cherished catalogs in rock history. With a $1.2 billion valuation, this landmark deal emphasizes the enduring popularity and financial potential of Queen's music, which continues to resonate with millions of listeners worldwide. As streaming and digital platforms dominate music consumption, owning timeless and influential music catalogs like Queen's will be crucial for sustaining long-term revenue and industry influence.

References:

Tencer, D. (2024, July 3). As Sony prepares to buy Queen’s catalog for over $1 billion, band’s annual revenue comes in at $49 million. Music Business Worldwide. www.musicbusinessworldwide.com/as-sony-prepares-to-buy-queens-catalog-for-over-1-billion-bands-annual-revenue-comes-in-at-49-million/?

Sony set to purchase Queen’s music catalog for $1.2 billion – royalty exchange. – Royalty Exchange. (n.d.). www.royaltyexchange.com/blog/sony-set-to-purchase-queens-music-catalog-for-1-2-billion?

Marfori, M. (2022, January 24). Sony Music Entertainment acquires Bob Dylan’s entire catalog of Recorded Music - Sony Music. Sony Music Entertainment. www.sonymusic.com/sonymusic/bob-dylan-recorded-music-catalog-acquired/#:~:text=Sony%20Music%20Entertainment%20Acquires%20Bob,of%20Recorded%20Music%20%2D%20Sony%20Music?