International Salsa Magazine

The Business Of The Artists

Currently, famous artists have begun to sell their musical legacy to avant-garde companies, obtaining the value for their catalog of songs comparable to a 25-year career in advance and immediate financial security that solves the termination of the singer-songwriter due to the forced stoppage of performances and concerts for a year due to the Covid-19 Pandemic. This New popular Business of the Artists consists of the monetization of iconic songs to private companies with which they reach agreements on the management of each theme for the subsequent increase in long-term income with a reliable projection in sustainable consumption.

Hipgnosis Song Funds Limited, KKR (Kohlberg Kravis Roberts), and Primary Wave are some of these unusual financial companies investing in music that have turned their sights to this sector and are completely changing the way it is managed around the world. Through the individual management of each classic theme, these companies promise to manage the proper use of the license in film, theater, television, commercials, new versions, etc.

There are already two Latin composers within this cartel of successful artists who have ceded their copyright to the company Hipgnosis Song Funds Limited: Colombian singer-songwriter Shakira and American songwriter of Latin American descent, Benny Blanco, this artist is the creator of very popular songs such as: “Señorita” (Shaw Mendes and Camila Cabello), “I can’t get enough” (J. Balvin, Selena Gómez and Tainy), “Good for you” (Selena Gómez) and “Love yourself” (Justin Bieber).

Although the details of these contracts have not been made public, it has been known that Shakira sold 100% of the publishing rights to her 145 songs to Hipgnosis and although all her legacy was delivered, this contract stipulates that the future compositions of the singer-songwriter are not included. Likewise, the new songs of the singer will continue to be managed by Sony / ATV, a record company associated with this Colombian star for more than a decade and with which she will remain for seven more years.

What is Hipgnosis Song Funds Limited?

It is a British investment company offering investors pure exposure to songs and associated musical intellectual property rights. Hipgnosis is listed on the main market of the London Stock Exchange (England) under the symbol SONG and has raised more than £ 625 million through its public offering since July 2018 to date.

Ted Cockle, Merck Mercuriadis, and Amy Johnson

The company along with its co-founder and former manager of figures such as Beyoncé, Elton John, Guns N ‘Roses, Iron Maiden among others, Merck Mercuriadisen, has a board of directors composed of Ted Cockle (President) and Amy Thomson (Chief Catalog Officer), which have poured all their knowledge of the modern and direct recording world to the company and have made Hipgnosis have thousands of hits from Latin popular singers such as Marc Anthony, Ricky Martin, Enrique Iglesias, and Jennifer López, among others.

What’s Behind This New Business?

Millionaire amounts! Nowadays, there is a greater consumer population of Streaming largely because of the Millennials generation, Generation Z, and the current Pandemic. This has made the great hits revalue over the news songs. According to estimates by The Wall Street Journal, a music catalog that could have been bought for £ 41,000 increased in value to around £ 40 million.

This new business has skyrocketed since the beginning of the covid-19 pandemic in early 2020 with the increase in digital content that remains stable with a continued projection of secure income on renowned artists who stand the test of time.

Regarding this New Popular Business of the Artists, Hipgnosis Song Funds Limited confirmed in its 2020 report that the investment for the acquisition of the rights to the Music Catalogs is sustainable in the market movement: “People always hear the music” and, thanks to the streaming, “they almost always pay for it.”

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Adriana Saez
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