IASPM 2024 conference presentation: “Music as an Asset Class”

Slides to my IASPM 2024 conference presentation are available here.

Abstract: This paper presents a series of empirical data spanning 40 years of financialization, deregulation, and consolidation within the American music industries. It applies recent research in political economy and heterodox economics to the music industries and enacts original empirical analysis using the financial analysis software Refinitiv. It maps a system of hedge funds, asset management firms, private equity, and corporate venture capital that is reducing operational capacity and cultural vibrancy as it extracts profit through financial engineering. Dividends, stock buybacks, activist letters, market share, leveraged buyouts, and common ownership are key metrics. This paper argues that the devaluing of our music industries is not technological or managerial, but an external financial phenomenon, facilitated by the shadow banking system. 

In addition to this broad empirical overview, a case study is provided of the “song management” firm Hipgnosis, founded and run by Merck Mercuriadis, former manager to Beyonce and Elton John. Hipgnosis owns more than 64,000 charting songs, many of which were acquired when it purchased Kobalt Music Group. It is financially backed by Blackstone, one of the world’s largest private equity companies. When appearing in public or the press, Mercuriadis is often seen with his partner, Nile Rodgers (Chic), emphasizing the positive impact Hipgnosis will have for the songwriting community. When addressing investors, his tone changes: “I founded Hipgnosis… to establish songs as an uncorrelated asset class with attractive risk adjustment returns.”