14-Year-Old Award-Winning Hip-Hop

Bid on songwriter royalties from over a decade worth of earnings from the Grammy-nominated track “Disco Inferno” by 50 Cent and more.

$40,200

closing price

Auction Closed

Top Bid: Rod 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: $22,000
Bidding Increment: $700
Closing Price: $40,200
End Date: Jun 12, 2019, 3:23 PM MDT
Dollar Age:

14.02 Years

Last 12 Months' Royalties: $7,228
Investment Term: 10 years*
Distributors: ASCAP, BMI
Rights Included:

Public Performance

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution (paid 30 days from receipt):

June 21, 2019

Distribution Frequency: Quarterly
Buyer Fees:

$500

* Please see the FAQ tab for more information on the 10-year investment term.

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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: ASCAP, BMI

Description

Comprised of over a dozen works dating back to the early 2000s, this impressive catalog boasts a Dollar Age of over 14 years. Alongside age, it also features consistency and growth. In fact, radio royalties are on the rise, up 40% in the last 12 months while streaming follows suit, up 13% in the same time period.

2005 release from 50 Cent, “Disco Inferno” drives the royalties generated by this catalog, contributing to 85% of earnings in the last 12 months. The track itself is on the rise, up 7% in the same time period. Released as the debut single for to the 5X Platinum 50 Cent album The Massacre, the track peaked on over half a dozen charts worldwide, landing a No. 3 spot on both Billboard’s Hot 100 and Hot Rap Songs charts. In 2006, the track received a BMI award and a Grammy-nomination for Best Rap Solo Performance.

Also featured on The Massacre, “In My Hood” makes up 4% of recent earnings. The track boasts 3.5 and 9.4 million spins on YouTube and Spotify, respectively. Additionally, this collection also earns from the Bow-Wow track "How You Move It" from Bow Wow’s Platinum album The Price of Fame. The track samples the composition "Disco Inferno.”

Key Drivers

Dollar Age. This catalog has a Dollar Age of approximately 14.02 Years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for more than 14 years. A high Dollar Age like this suggests stability and longevity. “Disco Inferno” was released in 2005 and royalties continue to grow. A catalog containing mature works with consistent and even growing earnings is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

Radio. Radio is the largest source of revenue for this catalog, accounting for 54% of historic royalties. Although radio royalties are still being generated, they could eventually level off. Typically, songs that experience significant radio play can often build a foundation for other types of income.

Case in point: streaming. Historically, streaming brought in 7% of royalties. In the last 12 months, however, streaming accounted for 38% of royalties. Streaming royalties are also seeing a 13% increase over the last 12 months. So as we're seeing the radio royalties begin to slow down, other income sources (streaming) begin to increase.

Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to BuzzAngle's 2018 Year End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Hip-hop/rap tracks accounted for more than a quarter of all on-demand plays on music streaming services in the US in 2018. What’s interesting is many of the works that make up this collection were released prior to the creation of today’s popular streaming platforms. Despite this, streaming accounts for 38% of this catalog’s earnings over the last 12 months and these earnings are up over 13% in the same period.

About the Royalty Distributor

American Society of Composers, Authors and Publishers (ASCAP) is one of four United States performing rights organizations, along with BMI, 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 ASCAP’s distribution schedule, click here.

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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