EXPLAINER: What happens when musicians sell their music catalogue

The Ghanaian music industry has seen the rise of music catalogue sales, with artistes disclosing how they have sold or are considering selling the rights to their existing body of work.

While the practice is becoming increasingly common internationally, selling a music catalogue remains a relatively unfamiliar concept to many music fans in Ghana.

Instead, discussions around catalogue sales often become ammunition for fans of rival artistes, with some using such deals to mock their counterparts by suggesting that their favourite artiste is “hungry” or facing financial difficulties.

So, what exactly happens when an artiste sells their catalogue?

When a musician sells their catalogue, they are essentially selling some or all of the financial rights to their existing music to another person, company or investment firm.

The exact terms of the deal vary, but the buyer generally acquires the right to earn money generated by the songs.

This can include royalties from streaming, radio, television, downloads, licensing and, in some cases, physical sales.

What does the musician get?

EXPLAINER: Why companies buy music catalogues and how they make their money back

In exchange for the rights covered by the agreement, the artiste usually receives an upfront payment.

Rather than waiting years to collect royalties from songs they have already released, the musician receives a lump sum based on the expected future income of the catalogue.

For example, imagine an artiste's catalogue generates $100,000 a year in royalties. A company could offer the artiste $1.5 million upfront for the rights to the future income covered by the deal.

The artiste gets the $1.5 million immediately, while the buyer collects the relevant royalties going forward.

What happens if the songs become more popular?

The buyer takes on the risk associated with the future performance of the catalogue.

If the songs become significantly more popular and generate more revenue than expected, the buyer could make more than the amount paid to acquire the catalogue.

However, if the music generates less income than anticipated, the buyer bears that financial risk.

This is one reason companies may be interested in acquiring established catalogues. They are betting that songs with an existing history of generating income will continue to do so or find new audiences.

Does the artiste lose every right to the music?

Not necessarily.

A catalogue sale does not automatically mean the musician gives up every right connected to their music. The terms of the agreement determine what is actually being sold.

The deal could cover the master recordings, which are the actual recorded versions of the songs, publishing rights, which relate to the underlying musical compositions, or both.

Creative control can also vary. Depending on the agreement, an artiste may retain approval over certain uses of their music, while in other cases the buyer could have broad authority to license the songs for films, advertisements and other commercial purposes.

Selling the rights also generally does not stop an artiste from performing their own songs at concerts. Ownership of the rights and the ability to perform the songs are separate matters.

How do buyers make their money?

Music catalogues are valuable because songs can continue generating income long after they are released.

Seven Xavier, President of the Ghana Music Alliance, discussed some of the reasons international companies acquire music catalogues and how they seek to profit from them during an interview on Hitz FM on August 21, 2025.

One major source of revenue is sync licensing, where songs are licensed for use in films, television programmes and streaming productions.

Advertising is another avenue. Brands can pay licensing fees to use recognisable songs in commercials, giving catalogue owners another source of income.

For example, a song from Shatta Wale's catalogue could potentially be licensed for a beverage, telecommunications or fashion campaign in Ghana, across Africa or internationally.

How TikTok can revive old songs

Social media has also changed the way older music can generate money.

A song released years ago can suddenly become popular after appearing in a TikTok challenge or viral trend.

That renewed attention can drive more streams on platforms such as Spotify, Apple Music and Boomplay.

According to Xavier, companies that acquire catalogues are likely to actively seek opportunities to increase the value of the music, including getting songs into movies and adverts, encouraging their use on TikTok and other platforms, and driving additional streams.

Why would an artiste sell a catalogue?

Speaking during GhanaWeb Entertainment's X Space on August 22, 2025, during a discussion titled “The Business of Music Catalogue Sales,” Mark Darlington explained that selling a catalogue is not necessarily a sign that an artiste is broke.

For musicians who have spent many years in the industry, selling their catalogue can be a way of unlocking the value built into their previous work.

Some may use the money to fund new businesses, invest in other ventures, pursue fresh creative projects or prepare for retirement.

There is also the issue of management. Large catalogues can require considerable work, from handling licensing requests and tracking royalties to monitoring how songs are being used across different markets.

For some artistes and labels, transferring those rights to a company that specialises in managing music assets can remove that administrative burden while providing an immediate lump-sum payment.

AK/AM