15-Year-Old, Growing Hip-Hop Catalog

Place a bid on this established offering with growing public performance royalties from hip-hop tracks dating back to 2004. 

$11,200

closing price

Auction Closed

Top Bid: S G

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: $7,200
Bidding Increment: $200
Closing Price: $11,200
End Date: Jan 07, 2020, 3:04 PM MST
Dollar Age:

15.63 Years

Last 12 Months' Royalties:

$1,988

Investment Term: 10 years*
Distributors: ASCAP
Rights Included:

Public Performance 

Interests Included:

Publisher (U.S. Only)

Track List:

Track List

First Distribution (paid 30 days from receipt):

March 20, 2020

Distribution Frequency: Quarterly
Buyer Fees:

1% of closing price or $500 (whichever is greater)

* 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

Description

This catalog features growing revenue from a 15-year old hip-hop collection. What’s particularly exciting about this asset is that the top-earning tracks were released between 1996 to 2008… and income for many of the highest-earning songs grew year-over-year!

Streaming is the largest source of earnings with 74% of the last 12 months' revenue, up 14% compared to the previous year. TV/Film royalties are also up significantly, as two songs in the listing were used in the feature film Barbershop, airing on HBO. 

The top-earning song is “Neighborhood Music” performed by Mexican/American hip-hop artist Lil Rob. Released in 2004, the single is off the album Neighborhood Music, which is Lil Rob’s second-most popular song on Spotify to date. Impressively, earnings for "Neighborhood Music" grew 13% year-over-year.

Another top-producing title is “Livin’ Large” from jazz saxophonist Euge Groove (contributing 19% of earnings), which increased 26% compared to the previous year. Finally, two songs in this collection are in the 2002 comedy Barbershop: THA'BPMZ’s “Escalade” and “Blow Up,” which collectively account for 20% of last year’s revenue.

Key Drivers

Dollar Age. This collection of songs has a Dollar Age of 15.63  years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for nearly 16 years. A high Dollar Age like this suggests stability and longevity.

The highest-earning track — “Neighborhood Music” — was released in 2004, and royalties continue to grow impressively thanks to streaming platforms. A catalog containing mature works with consistent (and even growing) earnings is something worth noting as an investor. This can help sustain earnings moving forward.

TV/Film Placements. This catalog benefits from placements in TV/Film, contributing to 22% of last year’s income. Every time Babershop airs on TV or is streamed on-demand, a royalty is generated for “Escalade” and “Blow Up.” As the winner of this auction, you'll collect the performance royalties for any of the songs' use in TV/Film.

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.

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