In a recent episode of the ‘Bag Fuel’ podcast, R&B singer and producer Lyfe Jennings offered a candid look behind the curtain of the music industry, shedding light on why so many artists are selling their music catalogs and the hidden tactics some record labels use to maximize profits at the artist’s expense.
During the conversation, Jennings explained that major labels and companies are aggressively buying up publishing rights and music masters because they view intellectual property as highly valuable—comparable to real estate. “It’s stable money,” Jennings noted, emphasizing how owning music rights provides long-term, reliable revenue. He argued that companies push to acquire catalogs at high multiples, knowing they can generate even more money by strategically placing these songs in films, commercials, and other licensing deals.
The trend of artists selling their catalogs, according to Jennings and the ‘Bag Fuel’ crew, often stems from short-term financial pressure. Artists take large payouts when their records aren’t performing as well, but labels know the long-term earning potential is much higher, especially once they take control and “revive” the music.
Jennings also exposed how some labels manipulate artist royalties by deliberately slowing down a song’s promotion, making it appear less valuable to the artist. Once an artist agrees to sell, the labels push the music again, generating greater profits.
Additionally, Jennings discussed how complex contracts and limited auditing windows are used to take advantage of artists, making it difficult for them to track or reclaim money they’re owed. He urged artists to audit their labels regularly but acknowledged the challenges of conducting a forensic audit, which is both costly and time-consuming. “They flood you with paperwork,” Jennings shared, describing how some artists are overwhelmed and unable to fight back effectively.
Lyfe Jennings’ revelations on the ‘Bag Fuel’ underscore the ongoing struggles artists face in navigating the business side of the industry, as major labels continue to find new ways to profit from intellectual property.
