The Power of Ownership in Music
1985 was a landmark year in music. Whitney Houston released her self-titled debut album, delivering multiple platinum hits and establishing her as a global superstar. Prince followed up Purple Rain with Around the World in a Day, his psychedelic-inspired album, featuring "Raspberry Beret" and "Pop Life." And, of course, the most significant event of the year—I was born.
But 1985 also saw another momentous shift in the industry. At the height of his success, Michael Jackson made a business move that no artist had ever accomplished before: he acquired ATV Music Publishing for $47.5 million, which included a significant portion of The Beatles catalog. This was more than a financial investment—it was a masterclass in understanding the long-term value of intellectual property. Jackson wasn’t just a performer; he was a visionary businessman who recognized the importance of music publishing, real estate, and infrastructure in building lasting wealth.
Michael Jackson, Sony, and the Evolution of Sony Music Publishing
Jackson’s control over ATV Music Publishing set him apart from most artists, but his ownership didn’t remain intact forever. In 1995, he agreed to merge ATV with Sony Music Publishing, forming Sony/ATV. While this deal initially strengthened his position, financial and legal pressures in the years that followed led him to sell off portions of his stake. By 2016, seven years after his passing, his estate sold his remaining interest in the publishing company to Sony for $750 million. Sony/ATV was later rebranded as Sony Music Publishing, the largest music publishing company in the world.
The Illusion of Cash vs. the Power of Music Rights
The sale of Jackson’s publishing stake underscores a broader issue in the entertainment industry: the illusion of cash as true wealth. Too often, artists—particularly Black artists—are pressured into parting ways with their most valuable assets: their intellectual property. While a lump sum payout may seem beneficial in the short term, publishing rights generate long-term, compounding revenue that outlasts any immediate cash windfall.
Cash itself is not an appreciating asset. It is a promissory note backed by the U.S. Treasury, subject to inflation and economic fluctuations. For instance, according to the U.S. Bureau of Labor Statistics' CPI inflation calculator, $750 million today has only a fraction of the purchasing power it would have had two centuries ago. Meanwhile, songs written in 1816 can still generate publishing revenue—demonstrating the true power of long-term ownership in music copyrights.
This wealth disparity is evident in Jackson’s hometown of Gary, Indiana, a city that has long faced economic struggles. Despite Jackson's immense financial success, the generational wealth potential of his publishing empire did not trickle down to the community that raised him. His story highlights how Black talent frequently fuels entire industries without benefiting from long-term ownership and financial security.
Jon Platt and the Changing Leadership at Sony Music Publishing
Jackson’s influence on the music publishing industry paved the way for a new era of leadership. In 2019, Jon Platt became Chairman and CEO of Sony Music Publishing, making history as the first Black executive to lead the world’s largest music publisher. Before Platt’s tenure, his predecessor, Martin Bandier, held the position for 11 years but did not report directly to the global head of Sony Music Entertainment CEO, as the publishing division was autonomous at that time. However, when Platt assumed the role, Billboard reported he was required to report to Rob Stringer, Sony Music Group's global Chairman—due to label restructuring and signaling a shift in corporate oversight and power dynamics.
Platt’s appointment is significant because it represents a Black executive leading the very company that Jackson once helped shape through his historic business moves. While Jackson’s legacy in music publishing is often discussed in the context of his financial challenges, his acquisition of ATV laid the groundwork for artists and executives to think differently about ownership and control.
A Lesson in Ownership and Long-Term Wealth
Michael Jackson’s journey with Sony Music Publishing is a cautionary tale about the importance of retaining music rights. His ability to recognize the value of publishing was groundbreaking, but the forces that led to the eventual sale of his stake reflect the broader systemic challenges Black artists continue to face in maintaining control over their wealth.
Jon Platt’s leadership at Sony Music Publishing is a full-circle moment—a Black executive overseeing the company that once owned Jackson’s publishing empire. His position underscores a shift in the industry, but the lessons from Jackson’s experience remain critical. Artists must prioritize ownership, financial literacy, and long-term wealth-building strategies that extend beyond the illusion of cash.