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The full episode, in writing.
Michael Jackson signed with Epic Records, a subsidiary of Sony Music, in the late 1970s. That deal launched a long and profitable partnership, beginning with the 1979 release of 'Off the Wall'. The album sold over 20 million copies worldwide, making it one of the top-selling albums of that era. In 1982, 'Thriller' followed, achieving unprecedented commercial success with estimated sales of over 66 million copies globally, more than the population of the United Kingdom at that time. This partnership gave Jackson the label support and resources necessary to dominate the 1980s and 1990s pop charts. As a result, albums like 'Bad' (1987), 'Dangerous' (1991), and 'HIStory: Past, Present and Future, Book I' (1995) were all released under the Epic/Sony label, each selling tens of millions of copies and producing multiple chart-topping singles.
In 1991, Michael Jackson negotiated and signed a groundbreaking contract with Sony Music. The agreement guaranteed Jackson an unprecedented share of profits from his next six albums, ownership of his own record label, opportunities to develop video software products, and involvement in film projects. The contract was valued as the largest ever awarded to an entertainer at that time, reportedly exceeding $60 million, a sum that dwarfed most music industry deals of the era. This gave Jackson leverage and significant creative control, but it also positioned Sony as his most critical business partner.
Jackson's financial power was not just in record sales but in his ownership of music publishing rights. In 1985, Michael Jackson acquired ATV Music Publishing for $47.5 million. That catalog included the rights to hundreds of songs, most famously the majority of The Beatles' catalog, as well as works by other major artists like Little Richard and Bruce Springsteen. In 1995, Jackson merged ATV with Sony's publishing division, creating Sony/ATV Music Publishing. This joint venture made both parties 50% owners of a giant publishing empire. By the late 1990s, Sony/ATV controlled over 2 million songs. This catalog generated hundreds of millions of dollars in licensing fees, giving Jackson both influence and a steady stream of revenue.
Jackson claimed that Sony was trying to force him into bankruptcy to gain control of his valuable music catalog. The primary mechanism here was debt: Jackson borrowed heavily against his stake in Sony/ATV, using it as collateral for loans to fund his lifestyle, philanthropy, and business ventures. As debts mounted, he became vulnerable to pressure from Sony, who, according to Jackson, wanted to trigger default and take over his share of the publishing rights. In public statements, Jackson alleged the company would “steal, cheat, and do whatever they can,” and particularly pointed to the catalog’s Beatles songs as a target. Sony consistently denied these accusations, maintaining they supported Jackson’s career and protected his interests.
The business relationship began to unravel with the release of 'Invincible' in 2001. This was Jackson’s first studio album in six years and was produced at a cost of over $30 million, making it the most expensive album ever made at that point. Despite high expectations, Jackson accused Sony Music of failing to adequately promote 'Invincible'. He publicly claimed they had intentionally sabotaged its commercial success by not funding sufficient marketing or supporting key singles. In 2002, these allegations became intensely public when Jackson called Sony Music CEO Tommy Mottola a “racist” and accused him of exploiting black artists. At a rally in New York, Jackson declared, “The record companies really, really do conspire against the artists. They steal, they cheat, they do whatever they can.” He suggested that Sony, and Mottola specifically, were attempting to undermine him so the company could claim his share of the Sony/ATV catalog.
Sony executives rejected these claims. They described Jackson's allegations as "bizarre" and said he was losing touch with reality. Sony's official position was that they had invested heavily in 'Invincible', and that lackluster sales were due to market conditions and changes in popular music tastes, not any deliberate effort to tank the album. In the wake of these disputes, the relationship between Jackson and Sony broke down completely. In 2002, after months of public accusations and counter-accusations, Jackson parted ways with Sony Music.
The fallout from the dispute had immediate business consequences. Jackson’s departure from Sony left him without major label support for upcoming projects. Meanwhile, the joint ownership structure of Sony/ATV meant that his most valuable asset was still deeply intertwined with the company he distrusted. Jackson’s debts continued to grow, with the catalog acting as both lifeline and leverage. The control of the catalog itself became a subject of legal, financial, and business maneuvering that would continue after his death.
After Michael Jackson’s death on June 25, 2009, Sony reengaged in business with the Michael Jackson Estate. In March 2010, the estate brokered a $250 million deal with Sony Music. The agreement spanned 10 albums over seven years, combining previously unreleased material and repackaged existing content. This stood as the largest-ever recording contract at that time, surpassing even Jackson's own 1991 deal. The mechanism for this windfall was the estate’s ownership of Jackson’s recordings and Sony’s ability to monetize both legacy and new releases.
In March 2016, Sony agreed to purchase the remaining 50% stake in Sony/ATV Music Publishing from Jackson’s estate for $750 million. This transaction gave Sony full control of a catalog that, by then, included over 2.8 million copyrights—covering an array of artists such as Taylor Swift, Adele, and Justin Bieber, as well as The Beatles. The $750 million sale made it one of the most expensive catalog buyouts in music history, giving Sony the largest publishing portfolio in the world.
In 2012, a security breach at Sony exposed the value and sensitivity of Jackson’s recorded legacy. Hackers stole a vast trove of unreleased Michael Jackson material from Sony’s servers. This breach involved over 50,000 files, including unreleased tracks dating back decades. The theft prompted Sony to reinforce digital protections, reflecting how modern music publishing had become a high-stakes, high-risk digital enterprise.
In 2014, the integrity of Sony and the Jackson Estate’s posthumous releases came under legal fire. Vera Serova, a fan, filed a class-action lawsuit against Sony Music and the Jackson Estate, alleging that three songs released on the 2010 posthumous album “Michael” were not actually sung by Jackson. The lawsuit was settled in 2022, but it drew public scrutiny to the business of posthumous releases and the authenticity of legacy artists’ catalogs.
John McClain, longtime music executive and co-executor of the Michael Jackson Estate, played a central role in overseeing these posthumous deals and defending the estate’s interests in negotiations with Sony.