Motley Fool Money David Bowie, Financial Genius
Aug 11, 2020
Discover how David Bowie was not just a musical icon but also a financial mastermind. His innovative strategy of converting his song catalog into a bond highlights his savvy approach to risk management. Economist Allison Schrager dives into the surprising intersections of music and finance, revealing how Bowie's foresight set him apart in both industries. This fascinating look into the financial genius of a legendary artist will change how you view the intersection of creativity and economics.
AI Snips
Chapters
Books
Transcript
Episode notes
Record Deal Dynamics
- Record labels offer advances in exchange for royalties, a generally favorable risk trade for musicians.
- Most musicians never profit, so they benefit from the advance; labels bet on potential royalty earnings.
Bowie's Financial Foresight
- David Bowie negotiated smaller advances early in his career to retain ownership of his song royalties.
- Later, he anticipated the music industry's decline and securitized his catalog, transferring the risk.
