Why Justin Bieber decided to sell rights to his songs for R$ 1 billion

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A British company acquired the copyright to the Canadian artist’s catalog of 290 songs. Justin Bieber at the 2022 Grammys Angela Weiss/AFP Justin Bieber sold the rights to his songs to Hipgnosis Songs Capital for US$200 million. The company now owns the pop star’s entire repertoire, including his biggest hits like Baby and Sorry. Bieber, one of the most successful artists of the 21st century, is part of a growing group of artists who have sold his catalogs. With the sale, Hipgnosis will receive money each time one of the Canadian idol’s songs is heard in streaming or used on radio, television or in the movies. The company acquired Bieber’s copyright to 290 songs and bought his share of the original recordings of the songs. This includes all of his music released before December 31, 2021. While Hipgnosis has not disclosed the terms of the deal, a source told the AFP news agency that the company paid around $200 million. More and more artists are selling their catalogs, although the trend is more common among older musicians. Music legends Bob Dylan and Bruce Springsteen have sold their catalogs to Sony over the past two years. Springsteen received $500 million from the sale of his entire discography. How do you profit from music catalogues? Analysis by Sean Farrington, presenter of BBC’s Wake up to Money and Today Today’s emerging artists can take inspiration from Justin Bieber’s “retirement plan”. Bieber had two options: keep getting paid every time one of his hits was played or sell the rights outright for an astronomical amount. The Canadian opted for the second choice, a decision usually made by singers much older than him. As the investor who bought Bieber’s rights told me: “It gives him the chance to apply his money as he wants and eliminates the risks of the future.” How do you get financial return? Perhaps the queen of music entrepreneurship, billionaire Rihanna, can give you some advice. ‘More Valuable Than Gold’ Hipgnosis Songs Capital is a separate entity from the Hipgnosis Songs Fund, which has also built a catalog of classic hits and receives money from institutional investors. This fund has been listed on the London Stock Exchange since 2018, while Hipgnosis Songs Capital is not listed on any exchange. The man behind both companies is Merck Mercuriadis, who has claimed that musical hits can be “more valuable than gold or oil”. He called Bieber’s song “arguably the definitive soundtrack to the streaming revolution”. Thirteen Bieber tracks accumulate more than 1 billion streams on platforms such as YouTube and Spotify. Drop in share price As its audience is still relatively young, says the entrepreneur, royalties will continue to be paid for “60 or 70 years”. “The beautiful thing about music is that when these works become hits, they become part of our lives and live forever,” Mercuriadis told BBC Radio 4’s Today programme. 27% since last year. In December, Mercuriadis said the share price was disappointing, but said he believed in the long-term profitability of the deal. “In the broader music market, people continue to listen to and pay for music despite growing cost of living issues, with US audio streams surpassing the 1 trillion per year mark for the first time,” he said. “These are indicators of the growth we will have as revenue flows to Hipgnosis in the billing process.” Despite not being involved in that purchase, the fund’s share price rose 1.6% after the Justin Bieber deal was announced. – This text was published in

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