Hipgnosis spent $1bn buying songs - will spend one billion more

Music industry blog Music Business Worldwide talked to Mark Mercuriadis, CEO and founder of Hipgnosis, about its novel business model. The company has spent billion dollars, across approximately 60 deals, to buy 12,000 songs, including those which have powered an array of hits such as Rihanna’s 'Umbrella', Ed Sheeran’s 'Shape Of You', Al Green’s 'Let’s Stay Together', Eurythmics’ 'Sweet Dreams (Are Made Of This)' and Beyoncé’s 'Single Ladies'... How did he get that kind of money? - “The important thing to remember in that context is, in order to spend $1bn, you have to have $1bn to spend. And you have to have a thesis that is appealing to investors to want to back you with that sort of money". Over the next two years, Hipgnosis will be at $2.5bn invested, with a catalog of 50,000 songs. Then what? - "in six or seven years they’ll probably be worth two to three times what they’re worth today”.