The posthumous inductees will join five others, Depeche Mode, The Doobie Brothers, Nine Inch Nails, T-Rex as well as a veteran rock journalist, producer and artiste manager Jon Landau.
The Hall of Fame releases between five and seven names to be inducted annually after a vote of more than 1,000 performers, music historians and industry experts.
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An artiste is only eligible 25 years after the release of his/her first album or single.
Houston and B.I.G are first-time nominees after their music had a huge influence in the ’90s. The pair were selected ahead of artistes such as Motorhead, Kraftwerk, MC5, and Rufus featuring Chaka Khan.
Known for his ferocious rap style, Notorious BIG released his debut album “Ready to Die” in 1994. At 24, he was widely considered to be one of the greatest rappers of all time, despite being killed in his prime.
He was killed in 1997, just a few weeks before the release of his second album, “Life After Death”.
On her part, Houston died at the age of 48 after the release of her debut album in 1985.
Houston is known for hits such as I Will Always Love You, I Wanna Dance With Somebody and My Love Is Your Love.