Published on April 16th, 2021 | by Clayton Durant

Hipgnosis CEO Merck Mercuriadis and Grammy Award Winning Producer Tricky Stewart Talk Music Catalog Valuations and More on the Latest Musonomics Podcast

If it seems like a remarkable number of larger-than-life legacy artists have sold the rights to their catalogs lately for astonishing price tags, it’s very likely the work of Merck Mercuriadis, CEO of Hipgnosis Songs Fund. Hipgnosis is disrupting the music industry by dropping big bucks on artists’ songs and transforming them into an investable asset class. In the first three months of 2021, this includes catalogs from music legends Jimmy Iovine, Lindsay Buckingham, Neil Young, Shakira, Bob Rock, and Carole Bayer Sayer. In the just-released episode of Musonomics: Valuation Nation: Hipgnosis and the Business of Song Management, producer and host Larry Miller, director of the NYU Steinhardt Music Business program, analyzes how the valuations of artists’ catalogs are calculated through historical and economic factors and then speaks to Mercuriadis, as well as Grammy Award Winning Producer Tricky Stewart, and Tricky’s brother and longtime manager Mark Stewart, CEO of Rz3 Recordings about the explosion of song catalog acquisitions and why a songwriter would entertain such a sale.

In this episode, listeners will get two different perspectives on catalog acquisitions: one from the producer/songwriter and another from the catalog acquirer. From the songwriter and producer perspective, Mark and Tricky Stewart break down what motivated them to sell their catalog to Hipgnosis in 2018, which included credits on hits such as Rihanna’s “Umbrella,” Justin Bieber’s “Baby,” and Beyonce’s “Single Ladies.” Additionally, Mark also discusses the complexities they faced in selling their catalog, what variables shifted the paradigm of catalog value in the favor of the songwriter/producer, and why Hipgnosis’ Merck Mercuriadis’ personal touch, care, and dedication to music made him the right choice for their songs.

From the acquirer side of things, Merck Mercuriadis explains why he is using the size and influence of his catalog to break down the traditional publishing model for what he feels is a more efficient song management model. He also expands on his intention to better equalize the playing field for songwriters in the economic equation. Lastly, Mercuriadis shares his ambitious future goals for Hipgnosis, which include, yes, more catalog acquisitions and increasing the company’s value from $2 billion to $5 billion within the next few years.

“Catalog acquisitions is one of the hottest topics in the music industry today,” says Larry Miller, CEO of Museonomics Consulting LLC and the head of NYU Music Business. “The commentary from Merck Mercuriadis, Tricky, and Mark Stewart, provides a unique perspective from both the acquirer and the acquired to give listeners a better understanding of the complex variables and decisions that have to be considered when buying songs as an asset class. ”

To listen to the full podcast episode, visit Apple Podcasts, Spotify, and SoundCloud. This episode was hosted by Larry Miller with technical support from Nakul Sharms, editorial direction by Jorri Roberts, Clayton Durant, and additional support from Ankit Chugh, Ryan Wincig, and Mari Barbieri from the NYU Steinhardt Music Business graduate program. This is the 34th episode of Musonomics; recent guests include Jonathan Azu, Josh Deutsch, Graham Henderson, Cherie Hu, Deborah Mannis-Gardiner, Rob Stringer, Scott Velasquez, and Jon Vlassopulos.

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About the Author

Clayton Durant Clayton Durant is the founder and CEO of CAD Management, an entertainment consulting company that focuses on event, tour, and strategic management for indie artists and brands. Email him at [email protected] to connect.