In a landmark deal that has sent shockwaves through the music industry, Sony Music has reportedly acquired the iconic music catalog of British rock legends Queen for over $1 billion. This acquisition, if confirmed, would mark one of the most significant transactions in the history of music catalog sales.
Sources close to the matter have indicated that the deal is in its advanced stages, although some insiders suggest that negotiations are still preliminary. The billion-dollar price tag, however, appears to be a realistic figure, given the immense value and enduring popularity of Queen’s music.
Queen’s catalog, which includes timeless classics such as “Bohemian Rhapsody,” “We Will Rock You,” “Another One Bites the Dust,” and “Radio GaGa,” is considered one of the most valuable in the world. The band’s music has not only stood the test of time but has also continued to generate substantial revenue through various channels, including streaming platforms, licensing deals, and live performances.
The acquisition process has been complex, primarily due to the ownership structure of Queen’s music rights. The band’s surviving members—Brian May, Roger Taylor, and John Deacon—along with the estate of the late Freddie Mercury, each hold equal shares in Queen Productions Ltd. This company owns the group’s recording catalog outside the United States and Canada. Additionally, Queen Music Ltd, which is administered by Sony Music Publishing, holds the global rights to the band’s music publishing catalog.
One of the complicating factors in the deal is the ownership of Queen’s recorded music rights in North America, which are held by Disney Music Group (DMG) through its subsidiary, Hollywood Records. DMG has a global distribution agreement with Universal Music Group, adding another layer of complexity to the negotiations.
Despite these challenges, Sony’s longstanding relationship with Queen, coupled with its financial muscle, has positioned it as the frontrunner in the race to acquire the catalog. Sony’s previous acquisitions, including the purchase of Bruce Springsteen’s catalog for $600 million and Bob Dylan’s catalog for an estimated $200 million, demonstrate its commitment to expanding its portfolio of iconic music rights.
The potential acquisition of Queen’s catalog would dwarf these previous deals, underscoring the band’s unparalleled influence and commercial appeal. Queen’s music continues to resonate with audiences worldwide, as evidenced by their 47.7 million monthly listeners on Spotify, making them the 48th most popular artist globally on the platform.
The financial performance of Queen Productions Ltd further highlights the catalog’s value. In the fiscal year ending September 30, 2022, the company reported revenues of £40.89 million (approximately $50.41 million), with a significant portion coming from royalties. This represents a 4.3% increase from the previous fiscal year, reflecting the sustained demand for Queen’s music.
The success of the 2018 biopic “Bohemian Rhapsody” has also contributed to the band’s resurgence in popularity. The film not only introduced Queen’s music to a new generation of fans but also boosted the band’s streaming numbers and overall revenue. In the three years following the film’s release, Queen Productions Ltd reported an average annual royalties revenue of £50.71 million.
While the exact details of the deal remain under wraps, industry insiders suggest that the acquisition could include not only the music publishing and recorded music rights but also merchandising and other business opportunities. This comprehensive package would provide Sony with multiple revenue streams, further enhancing the value of the deal.
The potential sale of Queen’s catalog comes amid a broader trend of high-profile music catalog acquisitions. The Michael Jackson estate, for instance, is reportedly in discussions with Sony Music Group to sell a stake in the late pop star’s rights portfolio for a price tag between $700 million and $800 million. Similarly, Pink Floyd’s catalog was put up for sale in 2022, although bids failed to materialize.
Despite the mixed results of some music catalog deals, the acquisition of Queen’s catalog represents a strategic move for Sony. The growth of paid streaming services like Spotify has significantly increased the value of music catalogs, making them attractive assets for investors. However, not all deals have been successful, as evidenced by the struggles of companies like Hipgnosis, which has faced challenges in recouping its investments.
As the music industry continues to evolve, the acquisition of Queen’s catalog by Sony Music could set a new benchmark for the value of iconic music rights. With the deal potentially nearing completion, the world will be watching closely to see how this historic transaction unfolds.
