Red Hot Chili Peppers Sells Catalog of Songs for $140 Million
Practically anyone privy to rock music likely knows the prolific band that is Red Hot Chili Peppers. Hits like “Californiacation” and “Sick Love” are edged into the brain of the music industry and alternative culture alike. Well, on May 4th, a registered investment company by the name of Hipgnosis acquired the rights to the band’s extensive catalog of rock hits.
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Red Hot Chili Peppers is just the latest addition of an artist’s discography to be purchased by Hipgnosis. Other highly well known artists include folk-rock legend Neil Young, Mark Ronson, and even Shakira. Notably, Grammy-winning producer and friend of the Peppers, Andrew Watts also sold to the company – with Hipgnosis obtaining rights to 105 of his songs along with writer and publisher’s share of the compositions. According to This is Money, the company raised around $13M in stocks from an “issued 9 million shares at a price of $160” to purchase these household name artist’s catalogs.
The purchasing of the 80’s alt band has yet to be announced by either party. Neither the actual amount of songs nor cost of the purchase have been disclosed. But, with smash hit records like “Under the Bridge” and “Give It Away”, it certainly must’ve been a pretty penny. The deal seems to have come in perfect timing as the band announced that a new album was on the way.
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In direct competition with Hipgnosis is One Media Ip Group. While Hipgnoisis’ catalog is extensive, this firm is right up there with them, recently acquiring rights to 250 tracks from rock band, Kid Creole and the Coconuts.
In a statement to The Guardian, frontman Kid Creole himself said, “One Media is a natural home for my music because they are focused on digital; nowadays there are hundreds of platforms. Kid Creole has to look after his Coconuts’ way into the future and that’s why I’ve done the deal.”
From Bob Dylan to Stevie Nicks, the recent phenomenon of artists selling the rights of their music has continued to make major investment firms tons of money. Many speculate the reasons for this being that some artists want to be able to comfortably maintain their lavish lifestyles throughout retirement – especially since the future of live concerts after the pandemic is still quite murky.
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Sources: Variety, The Guardian, This is Money, Music Business Worldwide
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