In a major deal that underscores the growing value of music catalogues as an investment asset, legendary rock artist Neil Young has sold 50% of his music catalogue to Hipgnosis Songs Fund for a reported $150 million. The deal, announced on October 25, 2021, grants Hipgnosis the rights to Young's songs spanning his entire career, except for his works published before 1972.
Young, a pioneering figure in rock music with a career that spans over five decades, is known for his distinctive voice and socially conscious lyrics. His extensive discography includes classics such as "Harvest," "Rust Never Sleeps," and "Old Man."
The sale of Young's music catalogue marks one of the largest deals in the music rights market to date. Hipgnosis, a London-based music investment firm, has been actively acquiring music catalogues from artists such as Katy Perry, Lindsey Buckingham, and Huey Lewis. The company's strategy is to generate revenue from the royalties earned by the songs in their portfolio.
Music catalogues have emerged as an attractive investment asset in recent years due to the steady stream of royalties they generate. According to the National Music Publishers' Association, the total value of music copyrights in the United States was estimated to be $12.2 billion in 2019.
The sale of music catalogues typically involves the transfer of various types of music rights, including performing rights, mechanical rights, and synchronization rights. These rights are managed by music rights societies such as ASCAP, BMI, and SESAC in the United States.
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