Yahya Farid Khwaja
The Writer is a Copyright Lawyer and CEO of Freebird Music Entertainment
For decades, music royalties were viewed mainly as payments flowing to artists, songwriters, record labels and publishers. Today, they are increasingly being viewed through a very different lens: as financial assets capable of being acquired, valued, financed and managed in much the same way as other income-producing assets.
The change is significant. Music royalties are now stable enough, in many cases, to support loans, investment structures and even securitised debt. What was once a relatively specialised and creative corner of the entertainment industry is gradually becoming part of mainstream corporate finance and asset management. At the heart of this shift is the music catalogue, royalties and ever hungry tech platforms for content.
A successful song can earn money from multiple sources. Spotify and other streaming platforms, YouTube, radio, television, public performances, advertisements, films, games, social media and synchronization licences. Unlike a physical commodity, the song is not consumed when it is used. The same recording can be streamed millions of times, licensed repeatedly and continue generating income decades after it was first released.
That makes established music catalogues especially attractive to investors. A catalogue with years of royalty history provides something financiers value greatly:measurable and recurring cash flow. The outlook is further strengthened by the continuous launch of new streaming platforms, digital services and entertainment features, each creating additional avenues for music consumption and monetisation. The scale of recent catalogue acquisitions demonstrates how dramatically the market has evolved.
In 2020, Universal Music Publishing Group acquired Bob Dylan's entire song writing catalogue, comprising more than 600 copyrights spanning approximately 60 years. The following year, Sony Music acquired Bruce Springsteen's entire recorded-music and songwriting catalogues, bringing under one corporate umbrella some of the most commercially enduring music of the past half-century.
In 2023, Hipgnosis Song Management, acting on behalf of a partnership with fund managed by Blackstone, acquired Justin Bieber's interests in more than 290 titles released before the end of 2021. The transaction included interests in publishing copyrights, master recordings and neighbouring rights. These deals are not simply examples of record companies purchasing music. They demonstrate the emergence of music intellectual property as a portfolio asset.
The South Asian market provides an equally important example. Universal Music Group acquired the complete catalogue of the UK-based South Asian label Oriental Star Agencies, including all of its recordings and, where held, publishing rights. The catalogue contains approximately 18,000 songs, concert recordings and videos accumulated over more than five decades. It includes work by major Pakistani, Indian and British-Asian artists such as Nusrat Fateh Ali Khan, Attaullah Khan, MalkitSingh and Bally Sagoo.
This transaction deserves particular attention in countries such as Pakistan because it demonstrates that the catalogue-acquisition business is no longer confined to Bob Dylan, Bruce Springsteen or other Western superstars. Historic South Asian music is also becoming part of the global competition for valuable intellectual property. Moreover, given the vast populations of India, Pakistan and other Urdu-speaking markets across South Asia, the potential consumer base is large enough to attract substantial investment from major technology companies in entertainment platforms, where music will continue to compete alongside video, gaming and other forms of digital content.
Universal described the Oriental Star transaction as part of its strategy to increase exposure to high-potential music markets. In financial terms, the logic is clear; acquire a culturally important catalogue, improve its distribution, introduce it to new generations and territories, and increase the earnings produced by the underlying rights. This is where music catalogue ownership starts to resemble asset management.
The owner is no longer simply collecting royalties.It is managing an income-producing portfolio. Rights can be analysed bygeography, artist, genre, age, platform and revenue source. Underperformingrecordings can be remarketed, metadata corrected, licensing opportunitiespursued and forgotten works introduced to new audiences. The result is afascinating combination of intellectual property law and corporate finance.
Pakistan holds a vast pool of valuable copyrights that remain under explored and under-monetised. The recent partnership of PTV and Radio Pakistan with Freebird Music to digitise and distribute their evergreen catalogues globally is a welcome step. Both institutions have built an extraordinary music archive that deserves wider international exposure. Many private labels, publishers and distributors, especially in folk and regional music, hold similar untapped catalogues. They now need to digitise, organise and distribute these works more effectively.
These recent copyright transaction offers an important indication of where this market may be heading. Pakistani music that was once produced for relatively local audiences can now form part of the acquisition strategy of the world's largest music companies. Music, therefore, is no longer simply a creative product that produces royalties after release.Increasingly, the rights behind that music are being treated as long-duration financial assets.
For Pakistan to benefit from the growing global value of music rights, the Government, IPO-Pakistan, IPTribunals and other stakeholders need to strengthen the copyright ecosystem. This means modernising legislation, improving copyright registration, speeding up dispute resolution and ensuring stronger enforcement against piracy and unauthorised use. Pakistani rights holders must also be better protected internationally so that their works can be monetised across borders with greater legal certainty.
The licensing framework also needs to become simpler, faster and more transparent.Clear ownership records, standardised licensing procedures, better royalty reporting and effective regulation of collecting societies would make it easier for platforms, broadcasters, brands and producers to legally use music. A smoother licensing system would not only reduce disputes but also give investors greater confidence in the value and predictability of Pakistani music catalogues.
Pakistan should also consider establishing a dedicated Music and Entertainment Copyright Office with specialised expertise in music rights, royalties, digital platforms and entertainment disputes. Such an institution could maintain a central rights database, assist with registration and ownership verification, facilitate licensing and support international enforcement. This would help transform Pakistan’s music heritage into a better protected and more investable intellectual property asset.