The Dramatic Drop in Value

In the first half of this year, the six albums that made Taylor Swift a global superstar—Taylor Swift (2006), Fearless (2008), Speak Now (2010), Red (2012), 1989 (2014), and Reputation (2017)—have experienced a dramatic and unprecedented drop in value. For example, the iconic album 1989 saw a staggering 56.4% decrease in streaming numbers and a 67.8% drop in music sales. Even the best-performing album among them, Speak Now, suffered a 40% decline in both streams and sales. This raises the question: is this the biggest devaluation of music assets ever seen in the global music industry?

The Origins: A Fierce Dispute

This situation originated from a fierce dispute in 2019 between Taylor Swift, one of the world’s most powerful female artists, and music manager Scooter Braun. That year, Braun acquired Big Machine Records, Taylor’s former record label, and with it, the rights to her first six albums. According to multiple sources, Braun secretly sold the official master rights to these albums to Shamrock Holdings, a private equity firm owned by Disney. The $300 million revenue generated from these albums was not shared with Taylor Swift.

Escalating Tensions and Taylor’s Response

The conflict escalated when Swift accused Big Machine and Braun of blocking her from using her old songs at music awards and in documentaries, and of unauthorized releases of her music in various formats. In response to these unfair restrictions, Swift announced she would re-record her albums and release them as “Taylor’s Version,” publicly declaring that only these new versions would be licensed for commercial use.

The Impact of Taylor’s Version

When Taylor released her re-recorded albums—1989, Speak Now, Red, and Fearless (Taylor’s Version)—the original albums, now owned by Shamrock Holdings, suffered massive losses due to the boycott and activism of Swift’s fanbase, the Swifties. Previously, Scooter Braun was considered a “mogul” in the US-UK entertainment industry, managing stars like Ariana Grande, Justin Bieber, Demi Lovato, and J Balvin. He was listed in Time 100 and appeared on the cover of Billboard in 2013, winning numerous awards for his work.

The sale of Swift’s six original albums to Shamrock Holdings brought Braun huge profits at the time. However, angering an artist as influential as Taylor Swift, backed by one of the most united fandoms in the world, has proven costly. Music Business Worldwide called it a “financial knockout” for Shamrock Holdings and Braun, while Rolling Stone highlighted the overwhelming sales and streaming victories of Taylor’s Versions over the originals.

For example, in its first week, 1989 (Taylor’s Version) achieved over 368 million streams in the US, a 1,329% increase compared to the original’s performance in the same period. Similarly, Speak Now (Taylor’s Version) caused the original to drop 40% in revenue in its first week post-release, and another 59% the following week. Red (Taylor’s Version) amassed 962 million streams in 2022, while the original dropped 41% in streams that year.

Taylor’s Strategic Mastery

Taylor’s approach to reclaiming her creative rights was meticulously planned. She publicly refused to license the original masters for any commercial use—including advertising, movies, and TV shows—if it would benefit Braun or any third party she didn’t approve of. This move left Shamrock Holdings in a difficult position: despite owning the rights to massive hits like “Shake It Off,” “Style,” “Love Story,” “Blank Space,” and “I Knew You Were Trouble,” they could not profit from commercial licensing, as brands and studios avoided using the originals.

The Power of the Swifties

The unwavering support of the Swifties was crucial. When Taylor released her re-recorded albums, fans collectively stopped streaming the originals and focused exclusively on the new versions. Many purchased physical copies of the re-recorded albums and launched social media campaigns across X (Twitter), Facebook, Instagram, YouTube, and Spotify to support Taylor’s rights and encourage other artists to stand up for their own.

Industry-Wide Implications

The plummeting value of Taylor Swift’s original masters serves as a wake-up call to music rights holders worldwide. It demonstrates that simply owning the legal rights to music does not guarantee control or profit if the artist and their audience do not support it. Ultimately, it is the artist and their fans who determine the true value—both emotional and commercial—of genuine musical works.

In summary:

Taylor Swift’s bold strategy to reclaim her music rights, combined with the passionate activism of her fanbase, has not only caused a multi-million dollar loss for the owners of her original masters but also set a new precedent in the music industry regarding the power of artists and their communities.