Shakira sells 145-song robust back catalog to Hipgnosis Songs Fund
What's the story
Shakira has sold her back catalog consisting of 145 songs, which are either in English or Latin.
The owner of this huge music bank is Hipgnosis Songs Fund, an investment firm listed in London, who announced the sale on Wednesday.
No detail about the sale value has been disclosed, but Hipgnosis owner Merck Mercuriadis praised Shakira and called her "the Queen of Latin Music."
Details
The Colombian hitmaker explained the situation beautifully
In her statement, the Colombian singer explained how her songs belong "not only to me but to those who appreciate it as well."
"Each song is a reflection of the person I was at the time that I wrote it. At eight years old, I wrote to make sense of the world. I know Hipgnosis will be a great home for my catalog," she stated.
Trend
Bob Dylan had also sold almost his entire music recently
This sale comes soon after Bob Dylan sold almost his entire music with an estimated $300mn value to Universal Music Publishing Group.
Larry Miller, a music business professor at New York University, said how legacy artists such as Dylan are cashing in on the value of their songs covered by countless other artists as back catalog sales are giving easy financial stability over time.
Context
How pandemic created a surge in catalogue value
To note, COVID-19 has severed big-time artists from one of their most important revenue sources, which is playing in concerts.
At the same time, the value of old music catalogs has risen enough for investment firms to take note.
However, music catalog sales go back a long time, like the sale of Paul McCartney and John Lennon's copyrights to Northern Songs in the 1960s.
Reason
Not high streaming rates, low inflation/interest rates are the reason
Investment researcher and ex-artist manager Daniel Weisman said high streaming rates aren't the reason here.
"It's because of historically low interest rates. Buyers are willing to pay more for a music catalog today than they would be if inflation and/or interest rates were higher," he highlighted.
Grammy award winner Shakira, who has sold over 80mn copies of her albums, is definitely a lucrative catch.