Hipgnosis Songs Fund: A Deep Look Into Hipgnosis Business Model
Abstract
The objective of this research paper is to provide a dissemination document that easily explains and contextualizes the business model of Hipgnosis Songs Fund. This research will analyze in an exhaustive way how music intellectual property works, the growth opportunities it has, and based on that, what are the key reasons that make Hipgnosis Songs’ strategy one of the most interesting and disruptive today from both an M&A and rights management perspective. The first section will consist of a literature review on music intellectual property and why today is considered an attractive asset class for investors. It will describe what are music rights and how they generate revenue for rightsholders, as well as showcase why they are a stable, predictable, and uncorrelated source of income. The second section will focus on Hipgnosis Song’s business model. First, it will bring a little overview of the company’s purpose, followed by an analysis of the company’s catalog strategy and why it makes sense from an investment standpoint. It will also touch on the Hipgnosis advocacy argument and how it could positively affect Hipgnosis shareholders –apart from improving the paradigm for songwriters. Also, it will describe what’s “Song Management”, what effects it has had on the company’s results, and how it breaks with the traditional publishing model. Finally, a conclusion will be provided collecting the ideas drawn about the research and that simply will explain the “why” of Hipgnosis. To undertake this research and support the hypotheses, the research methodology carried out has been based on the analysis of articles, official reports, and essays from specialized sources such as CISAC, IFPI, Goldman Sachs, MBW, Music Week, Rolling Stone Magazine... Also, this research has been complemented with interviews made to experts in the field and music professionals from companies such as Sony Music Publishing, Association of Independent Music (AIM), Hipgnosis Songs Fund, and Warner Chappel.
Publication Date
7-1-2021
Campus
Valencia (Spain) Campus
Keywords
music rights; Intellectual Property; M&A; catalog; streaming; asset; investors; label; publisher; copyright; songwriter; investment; Hipgnosis; Merck Mercuriadis
Recommended Citation
Sanchez Carbajo, Lamberto. “Hipgnosis Songs Fund: A Deep Look Into Hipgnosis Business Model.” Master's Project, Berklee College of Music, 2021. https://remix.berklee.edu/graduate-studies-global-entertainment-business/123
Comments
Project Components: one outcome paper, one reflection paper.