Shakira is the latest artist to sell the rights to her music for an undisclosed multi-million-dollar sum. Some analyst believe the deal is between 100 and 200 hundred million dollars. Her catalog consisted of 145 songs, including her popular hits “Hip Don’t Lie”, Whenever, Wherever” and “She Wolf”. She is currently the best-selling female Latin artist of all of time with over 80 million albums sold worldwide. The deal was made with Hipgnosis Song Fund, who recently acquired the rights to Blondie and Neil Young’s music.
Hipgnosis has not revealed the amount of the deal. However they have previously published that their deal with Neil Young was for $150 million. Hipgnosis typically pays the artists 15 years’ royalties at the very beginning of their deal.
Company founder Merck Mercuriadis told BBC that many artists will have “about 25 years worth of money in one fell swoop”. The deals provide artists with millions up front, making them more financially secure, and the company will use the music for the following: film and TV licensing, merchandise, cover versions and performance royalties.
Hipgnosis has been aggressive in their pursuit to own a diverse collection of publishing rights. They recently struck deals with Nile Rodgers, Blondie, Barry Manilow, Chrissie Hynde and Fleetwood Mac’s Lindsey Buckingham.
While the company has acquired the rights to songs by “legacy” artists, Shakira’s catalog was of interest due to the number of hits and popularity of her music over the last couple decades. She won three Grammy Awards and 12 Latin Grammy Awards. She also went diamond with her album Laundry Service and El Dorado. She is one of the only female artists to have two music videos reach over a billion views on YouTube. Her performance at the Superbowl last year with Jennifer Lopez has also increased the value of her catalog.
“She is a superb creator who has led the charge from what was massive physical success to now having bigger success in streaming than most of her contemporaries,” said Mercuriadis in a statement.
“This is the result of her being a determined force of nature and having written songs the world is incredibly passionate about.”
These artist are selling their catalogs because it makes more economical and financial sense for many of them. They have to decide if it is better for them to continue to get their royalties, or is it better to receive one large sum that can be saved, invested and grown in a variety of different ways right now. It was probably a tough decision, but Shakira ultimately chose financial security today versus gambling with royalties tomorrow.
Hipgnosis considers itself a song management company. They ensure their client’s musical legacies will always be respected and marketed in ethical ways.
Shakira explains her decision, “Being a songwriter is an accomplishment that I consider equal to and perhaps even greater than being a singer and an artist, ” she said.
“At eight years old – long before I sang – I wrote to make sense of the world. Each song is a reflection of the person I was at the time that I wrote it, but once a song is out in the world, it belongs not only to me but to those who appreciate it as well.
“I’m humbled that songwriting has given me the privilege of communicating with others, of being a part of something bigger than myself.”