10+ Year Old Growing Hip-Hop Catalog

This listing features hip-hop releases with over 11 years of earnings led by the Hurricane Chris single “A Bay Bay,” which continues to show significant growth.

$26,250

closing price

Auction Closed

Top Bid: Lucas C

The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.

Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.

Starting Price: $14,000
Bidding Increment: $250
Closing Price: $26,250
End Date: Dec 19, 2018, 1:11 PM MST
Last 12 Months' Royalties: $2,410
Investment Term: Life of author + 70 years
Distributors: BMI
Rights Included:

Songwriter (World)

Interests Included:

Public Performance

Track List:

Track List

First Distribution: January 18, 2019
Distribution Frequency: Quarterly
Buyer Fees:

$500

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What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive Streaming
Sync
Sources: Internet Streaming, AM/FM & Satellite Radio, TV/Film/Commercial Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors: BMI

Description

Up for auction is a collection of early 2000’s releases from hip-hop artist Hurricane Chris. With over a decade of earnings, this catalog continues to show impressive growth despite its age. In the last 12 months, streaming income grew 14%, thanks to a strong foundation of early radio play (which drove nearly half this collection’s lifetime earnings).

Leading the collection’s earnings is the track “A Bay Bay,” released in 2007. It alone contributes 62% of total earnings in the last 12 months, and grew 25% in the last 12 months. The original track received instant recognition by additional artists, sparking the creation of a remix featuring The Game, Lil Boosie and E-40, also included in this listing.

Additional Hurricane Chris tracks in this catalog are showing growth as well. In the last 12 months, “She’s Fine” (2009) and “Hand Clap” (2007 ) have grown 10% and 9%, respectively. Collectively, the works make up nearly 20% of earnings in the last 12 months.

Key Drivers

Hip-Hop/Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. Hip-hop overtook rock in 2017 as the most popular genre of music in the U.S. and now accounts for 31% of all music consumption. The driver for the increase is streaming. According to Rolling Stone, total consumption of Urban songs (Hip-Hop/Rap and R&B) by both streams and sales grew by 18% in the first half of 2018. Streaming accounts for nearly 70% of this catalog’s earnings over the last 12 months and these earnings are up over 14% in the same period.

Longevity. Some of the songs were released 11 years ago and they are still earning. This demonstrates the longevity and impact the songs and artists have on today’s listeners. Industrywide, “Catalog Songs” (music released more than 18 months ago) and “Deep Catalog” (music released more than 3 years ago) together represent over 60% of music streamed today.

This collection of songs aligns with this trend. The highest-earning track — “Ay Bay Bay” — was released in 2007. A catalog containing more mature works is something worth noting as an investor.

International. A growing portion of this catalog’s earnings come from abroad — at 15% of earnings in the last 12 months. Although international royalty distribution can lag behind domestic payments and arrive with limited detail, as the winner of this auction you’ll be entitled to any past performance royalties paid by BMI, regardless of when they were earned.

About the Royalty Distributor

Broadcast Music, Inc. (BMI) is one of four United States performing rights organizations, along with ASCAP, SESAC & Global Music Rights. It collects license fees from music users on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. For more information on BMI’s distribution schedule, click here.

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