NFTs next hit may be music industry, former manager for Elton John, Beyonce says

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As a former music manager who once counted Elton John, Beyonce and Guns N’ Roses as clients, Merck Mercuriadis has an eye for talent and a knack for identifying trends.

As streaming services such as Spotify and Apple Music gained mainstream popularity, Mercuriadis formed the Hipgnosis Songs Fund to acquire music rights. The fund, which went public in 2018, has invested $2.5 billion acquiring the publishing rights to 64,000 compositions from such hitmakers as Timbaland, Fleetwood Mac’s Lindsey Buckingham, The Pretenders’ Chrissie Hynde, Rick James and Neil Young.

“Someone like Nile Rodgers, whose songs have done incredibly well for 40 years … every six months, get a statement from Sony that’s 10,000-pages long and has billions of microtransactions on it,” Mercuriadis said in an interview at the Reuters Next conference. “In the future, with NFT and blockchain, those billions of transactions will be able to come back to you in real time.”

Mercuriadis is focused, more immediately, on establishing songs as an “asset class” that will deliver reliable and predictable revenue.

 

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