Ryan Tedder, the acclaimed songwriter behind OneRepublic and numerous hits for other artists, has sold a significant portion of his music catalog to Hipgnosis Songs Fund. The financial details of the deal were not disclosed.
Tedder, who has penned hits for artists like Adele, Beyoncé, and Maroon 5, is the latest high-profile songwriter to join the growing trend of music rights sales. The sale includes his share of OneRepublic's catalog as well as his individual songwriting royalties.
Hipgnosis, a London-based music investment firm, has been on a buying spree in the past few years, acquiring catalogs from artists such as Neil Young, Tim Balmes, and most recently, Shawn Mendes and Justin Bieber. The company's strategy is to buy music catalogs and exploit the copyrights for revenue through sync licensing, mechanical licensing, and performance royalties.
The sale of music catalogs has become an increasingly popular investment avenue for private equity firms and hedge funds. According to a report by Rethink Music, the global market for music rights is estimated to be worth $29 billion, and the trend is expected to continue as streaming services become the primary source of music consumption.
Music rights come in various forms, including publishing rights, master rights, and synchronization rights. Music rights societies, such as ASCAP, BMI, and SESAC, collect and distribute royalties for songwriters and publishers.
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