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Cover bands are no longer mere pub entertainers. Groups such as Eagle Eyes and Dread Zeppelin have developed wide followings. Even megastars such as Taylor Swift are doing covers — of their own material. In early April the US singer and songwriter released Fearless (Taylor’s Version), a re-recording of an album she first put out 13 years ago. Swift did so less to please her legion of fans than to recover lost revenue streams.
Her move counters recent trends. Older artists including Bob Dylan and Stevie Nicks have cashed in their recording rights, reputedly for big sums worth 15 years or more of royalty revenues. That reflects advancing age and limited concert opportunities during the pandemic. Moreover, capital gains tax in the US and elsewhere could rise in tandem with income tax.
Swift, of course, is no senior citizen. She intends to flood the streaming market with accurate duplicates of her own songs, for which she has publishing, but not recording, rights. Those were snapped up back in 2019 when investors led by Scooter Braun bought Big Machine. The Nashville music label owned the recording rights to Swift’s first six albums. Braun’s group turned a profit by selling them to Shamrock Capital for $300m.
The tactic is not new. Flooding the market worked for 1980s heavy metal band Def Leppard, who re-recorded their work in 2012, unhappy with paltry returns from streaming. Six years later, the band’s music label gave up and renegotiated a new streaming deal. Swift’s new recordings, if accepted by fans and those who buy rights, such as advertisers, could hurt Shamrock. At the prevailing revenue multiple, Swift would hope to recoup a chunk of the $20m annually accruing to Shamrock. All the while she could earn even more publishing royalties.
Recording catalogues, unlike most publishing rights, are not immutable. The trick for the original artist is to cover their own songs, perfectly.
What do you make of Taylor Swift’s decision to re-record her own albums? Lex is interested to hear your thoughts.
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