The prices paid for music catalogs are insane.
Since 1928, the return on the S&P 500 has averaged almost 10% per year.
How do you average $127 million in royalties EVERY year for Queen music?
On top of that, it is a business with fixed costs - probably several million per year.
Crazy.
If it is some billionaire who loves Queen, fine, its like a buying a painting you love.
But, $1.27 billion for a popular music business?
No thank you.
On top of that, it is a business with fixed costs - probably several million per year.
Firstly, the fixed costs would be minimal. Need a lawyer, accountant and a couple of bookkeepers. But the department that manages these catalogs also mange others so the costs are spread among all of the catalogs.
As to another comment, SONY Records is essentially an American company, but the Japanese owners are culturally progressive folks who understand that the most important thing is that these catalogs make money, lots of it.