Why companies buy music catalogues and how they make their money back

When MOG Beatz recently called out Shatta Wale, for allegedly selling his music catalogue to a foreign company for millions of dollars and removing his producer credits, the Ghanaian entertainment industry was shaken.

This development brought to light other artistes, including prominent names, who have also sold their catalogues.

It also raised an important question: why international companies buy music catalogues, and how they make money from music that, in some cases, are years or even decades old?

The answer lies in the rights that come with owning a music catalogue.

These catalogues are more than just collections of old songs; they are valuable assets. Companies that acquire them can reuse, license, and monetize the music in various ways, from film and TV placements to streaming, sampling, and commercial use.

Seven Xavier, President of the Ghana Music Alliance, discussed some of the reasons why international companies buy music catalogues and how they profit from them during an interview on Hitz FM on August 21, 2025.

Movies and television

One of the most common ways catalogue owners make money is through sync licensing, placing songs in films, TV shows, and streaming productions.

A single placement can bring in tens of thousands of dollars, sometimes more, depending on the size of the project.

Advertising

Adverts are another lucrative avenue. Global brands pay hefty licensing fees to use songs in commercials because music adds instant recognition and emotion to campaigns.

A song from Shatta Wale’s catalogue could be licensed for a beverage, telecom, or fashion brand’s campaign across Africa or even beyond.

Social media

In today’s market, TikTok has become a major driver of music revenue. Catalogues often get revived by pushing old tracks into new viral challenges.

A catchy chorus from years ago can suddenly take over TikTok trends, and that renewed interest leads to more streams on sites like Spotify, Apple Music, and Boomplay.

AI and data

Catalogues are increasingly valuable for AI companies training their systems to understand music from different regions and cultures.

With Ghanaian music catalogues, international buyers could feed songs into AI platforms to analyse rhythms, lyrics, and styles for future products, whether that’s music recommendation engines, sound libraries, or even generative music software.

“Most of the songs that have been bought, you ask yourself how they’re going to make the money off it. That means the company that put the money would probably be actively trying to get the songs in movies, songs in adverts, on TikTok or other platforms, and get people to use it to rack up those numbers.

“Because when you think about it, most of our songs, they almost die after like a year being out. You know, so you’re asking yourself, why is the Chinese company coming to buy these? What are they going to use it for? Maybe just even maybe they are creating an A.I. platform where they need to learn our Ghanaian music,” Seven Xavier, President of the Ghana Music Alliance explained.