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.
Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, TV/Film/Commercial Performances, etc.
Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
This offering features rising royalties generated by a 16-year old Swedish pop collection. What’s particularly exciting about this catalog is that three of the top-earning tracks have release years ranging from 1999 to 2001… and the income grew year-over-year!
Streaming is the largest source of earnings with 48% of the last 12 months' revenue, and these royalties increased by 26% compared to the previous year. And while digital download activity is in decline throughout the industry, downloads for this catalog are also up 5%.
Live performance income is the second highest-earning source with 36% of revenue last year. All 15 included tracks have generated consistent live performance revenue over the last six calendar years, averaging $1,550/annually. For a catalog with more mature releases, this is rather impressive.
The catalog’s top-earning song is “Kom Hem” performed by the Swedish dance band Barbados. Released in 2000, “Kom Hem” was a commercial hit and peaked at No. 19 on the Swedish singles chart. The song is the group’s most popular song on Spotify to date and earnings grew 3% year-over-year.
Other notable titles include another Barbados track “Pojkarna I Poolen,” the 2001 release “I Kväll Ska Allting Hända” from Swedish group Sannex, and “Blue Blue Moon” performed by The Boppers.
Dollar Age This catalog has a Dollar Age of approximately 16 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for 16 years.
Even more impressive, the top-three earning songs have release dates from 1999 to 2001, and royalties for these tracks grew impressively year-over-year. A high Dollar Age like this suggests stability and longevity and is worth noting as an investor. This can help sustain the asset’s earnings moving forward.
Streaming Growth Worldwide. According to IFPI’S Global Music Report 2019, streaming revenues were up 34% in 2018, accounting for nearly half (47%) of total recorded music revenues. By the end of 2018, there were 255 million users of paid subscription accounts globally. This is good news for you as the investor, as 48% of last year's income (both public performance and streaming mechanical royalties) came from streaming.
About the Royalty Distributor
STIM is a Swedish collective management organization for music creators and publishers. On their behalf, STIM administers and licenses performing and mechanical rights to music and lyrics. STIM was founded in 1923 and is headquartered in Stockholm. STIM is a non-profit organization representing 85,000 songwriters, composers, text authors and music publishers worldwide.
Public performance royalties are payments made by radio stations, hotels, restaurants, night clubs, etc. to the composition copyright holder(s) for each public performance of the copyrighted work. In the U.S., public performance royalties are typically paid to performing rights organizations (e.g., ASCAP, BMI) who then distribute the royalties to the copyright holder(s).
Mechanical royalties are royalties deriving from per-unit payments made by recording companies or digital download providers to the composition copyright holder(s) for every purchase of a sound recording that reproduces the copyrighted composition.
Non-interactive digital performance royalties are payments made by non-interactive music services (i.e. those that mimic the experience of a radio broadcast) of a statutorily-set amount (on either a per-play or annual basis—depending on the type of service) to SoundExchange for the benefit of the sound recording copyright holder and the performing artists for the right to perform the copyrighted sound recording via non-interactive, digital means.
non-interactive digital performance royalties
The royalties owed to the creator(s) of a musical composition which are paid in return for the right to reproduce, distribute, or perform the copyrighted work.
A musical composition is one of the two copyrightable parts of a recorded song. It consists of the song's music, including any accompanying words, (i.e. the portion of a song that is capable of being fully expressed as sheet music) and is separate from any particular recording of the song or its performance by any particular artist.
A sound recording is one of the two copyrightable portions of a recorded song. It results from the fixation of a series of musical, spoken, or other sounds in a tangible (at least momentarily permanent) medium.
The portion of royalties owed to the owner of a sound recording. The owner may the performing artist, the producer, or another party (such as a record label) who contractually acquired the ownership of the copyrighted work (e.g., through a recording agreement), owns it by virtue of an employer-employee relationship with the creator(s) of the work, or specially commissioned the work.
rights owner's share
The portion of royalties owed to the performers of a sound recording in return for the right to perform the copyrighted work via non-interactive, digital services (e.g., Pandora, Spotify).
The portion of royalties owed to the music publisher which are paid in return for the right to reproduce, distribute, or perform a copyrighted musical composition, arising from a contractual obligation (i.e. a publishing agreement) or employer-employee relationship with the creator of composition (i.e. the songwriter(s)).
If an asset requires splitting up a catalog by works or percentages, Royalty Exchange may need to provide royalty accounting services to the buyer, seller, or both. This is because the royalty distributor may not be able to split royalties as intended by the asset transfer. Royalty Exchange's involvement helps to ensure accurate royalty payments. It also helps assure buyers and sellers that they are not missing out on potential earnings.
The accounting process often involves manual spreadsheet work and coordinating with royalty distributors. Royalty Exchange's goal is for the accounting service to be temporary. We plan to work with distributors to find solutions that will allow us to revert accounting and payment obligations back to the distributor, removing ourselves from the process. In the meantime, we've instituted the 5% fee to help offset costs in the manual accounting.
Please see the sample accounting agreement document for reference.
Why does Royalty Exchange need to account?
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