Country music superstar Kenney Chesney sold 80% of his recorded music royalties to Hipgnosis Songs Fund in a deal whose price remains undisclosed. The transaction was announced in October 2020.
Hipgnosis, a London-based music intellectual property investment firm, has been actively acquiring music catalogs. In 2020, they bought stakes in the catalogs of Neil Young, Timbaland, and others.
Chesney's deal with Hipgnosis marks another significant investment in the music industry. The terms of the agreement grant Hipgnosis the rights to collect and receive royalties from the sales of Chesney's recorded music.
The sale of recorded music royalties is a growing trend in the music industry. Artists sell their catalogs to investors to secure a lump sum payment. In exchange, the investors collect royalties on behalf of the artists.
Music rights are an essential component of the music industry. They include the rights to perform, record, and distribute music. Music rights societies like ASCAP, BMI, and SESAC help manage and collect royalties for songwriters and publishers.
For more information on music rights and the music industry, visit the following resources:
[1] Music Business Worldwide: Hipgnosis and Blackstone Acquire 80% of Kenny Chesney's Recorded Music Royalties [2] Billboard: Kenney Chesney Sells 80% of His Recorded Music Royalties to Hipgnosis Songs Fund
Note: This article is for informational purposes only and should not be considered financial advice.