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

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Former music manager Merck Mercuriadis, who once counted Beyonce and Guns N’ Roses as clients, said that NFTs in music can bring a new level of transparency to music royalties, and could be ‘an important part of the future’ ReutersNext

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.

NFTs also could provide a new type of collectible for music fans, such as music or videos, for the same price as a traditional tour book sold at concerts, Mercuriadis said. These more engaging experiences are “an important part of the future,” Mercuriadis said.Beyonce performs at the 59th Annual Grammy Awards in Los Angeles, California, U.S. , February 12, 2017.

Mercuriadis says Hipgnosis can do a better job than the traditional music publishers of managing its collection of hits, seeking “off-market transactions” and exploiting new platforms such as Peloton, TikTok or Roblox. A new partner, Blackstone, which has pledged to invest $1 billion in buying music rights, will help Hipgnosis further refine its approach to managing songs.

 

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